Posted by stockmanmy > 2016-11-27 00:30 | Report Abuse

I would love to hear the response from TF on the accusations contained in the article.

Posted by stockmanmy > 2016-11-27 00:32 | Report Abuse

https://www.bloomberg.com/gadfly/articles/2016-11-24/airasia-s-new-lease-of-life

Posted by stockmanmy > 2016-11-27 00:34 | Report Abuse

the model to how TF created a successful modern airline empire.

Posted by stockmanmy > 2016-11-27 00:47 | Report Abuse

the more you think about the problems faced by TF , the more you appreciate the genius of TF....His last two objectives....

to sell the leasing unit thus solving the Balance Sheet problem
to list a new holding company for all his Asean units to be a truly Asean airline.



None of these is possible until he can produce a truly efficient, profitable empire with a load factor of 90%....truly amazing.

Posted by paperplane2016 > 2016-11-27 01:44 | Report Abuse

So bro. You support AirAsia?

Posted by stockmanmy > 2016-11-27 01:48 | Report Abuse

I don't know la, brother.

I don't have any.

I rather focus on export stocks than stocks that go down if ringgit in crisis.

Posted by paperplane2016 > 2016-11-27 01:55 | Report Abuse

It has lots of usd debts! Thats alarming!better avoid!

Posted by stockmanmy > 2016-11-27 02:16 | Report Abuse

This article also raise the question what is in the item known as leasing income.................according to the author, it is more than what meets the eye....it is accounting profit and cash flow created out of financial engineering.

Posted by stockmanmy > 2016-11-27 02:18 | Report Abuse

it is borrowings disguised as income.

Posted by paperplane2016 > 2016-11-27 02:18 | Report Abuse

Hehe.that is smart or not smart then? Anyway, they are selling assets , planes and leasing back. If rm4bil, or 4.50bil now, can pay down half of debts consider good liao.

Posted by paperplane2016 > 2016-11-27 02:20 | Report Abuse

To be exact, it is expenses, but due to related party leasing, interpreted as income.
So when it sell all planes to leasing company their exppense mIght balloon!!!

Posted by paperplane2016 > 2016-11-27 02:22 | Report Abuse

But I would think maybe deal said at certa8n expenses fixed for xx years. Then the expenses will be in control and they will transfer tht to customers. Now they said want tO venture new areas Like selling customers duty free things, help them exchange forex, earn commission there. Not a bad idea lah....

Posted by stockmanmy > 2016-11-27 02:32 | Report Abuse

The concluding sentence in the article is most telling................

if they sell the leasing company , they give up power. and incurring higher costs in future.
if they don't sell, they cannot solve its Balance Sheet problem and US$ borrowings.

Posted by stockmanmy > 2016-11-27 02:37 | Report Abuse

with the help of big data..................and TF natural genius for creating revenue, they are confident in continuous improvements in income stream and survive in future even without creating financial engineering.
the group has reached that stage already.

Posted by paperplane2016 > 2016-11-27 02:49 | Report Abuse

Yes. It is a dilemma. But my guess on tony and gang plan is clear. Take money and cabut! Do pp first. Pair down debts? Pay special div. The rest? Good luck to your future! If plan goes well, we all earn, if not......

Posted by paperplane2016 > 2016-11-27 02:51 | Report Abuse

Their venture so far succeed in thailand only. Hoping Philippines also. The Indonesia is tough mkt, India also. If they succeed in India, China, Taiwan and Japan, aLso some southeast Asia like Vietnam, Burma, then good....

Posted by paperplane2016 > 2016-11-27 02:52 | Report Abuse

My guess on next mkt they will venture big into is Vietnam.

Posted by einvest88 > 2016-11-27 09:32 | Report Abuse

buy AA now just like committing suicide

Posted by Air_Asia > 2016-11-27 10:06 | Report Abuse

Sure support. TF is M'sian best salesman. RM weak mean more tourists will visit M'sia which benefits AA. Exporters-when Trump become US presidents many factories here will be closed and moved back to US. Many local exporters cannot export to US due to no TPP.

Posted by paperplane2016 > Nov 27, 2016 01:44 AM | Report Abuse
So bro. You support AirAsia?

Posted by stockmanmy > 2016-11-27 11:05 | Report Abuse

have you considered that the leasing income all these years is not really leasing income but is borrowings disguised as income?

read the article.

Posted by shortinvestor77 > 2016-11-27 13:00 | Report Abuse

If leasing unit is good, TF don't need to o sale already.

Posted by shortinvestor77 > 2016-11-27 13:03 | Report Abuse

Who want to sell a goose that can lay golden eggs?

Posted by shortinvestor77 > 2016-11-27 13:04 | Report Abuse

If it is, sell ticketing business but keep the leasing unit lah.

Posted by stockmanmy > 2016-11-27 13:05 | Report Abuse

77

its called choosing the options wisely.

Posted by r°Moi > 2016-11-27 13:47 | Report Abuse

OMG... again.. that leasing thingy

Posted by r°Moi > 2016-11-27 13:48 | Report Abuse

But... Tony has no worries.. after PP and AAC.. other peoples money

Posted by r°Moi > 2016-11-27 13:49 | Report Abuse

If they bring their own shorties.. wait wait wait and wait some more for opportunity

Posted by r°Moi > 2016-11-27 13:52 | Report Abuse

But must study... where low jet fuel price benefit gone into already??

Posted by elbrutus > 2016-11-27 13:54 | Report Abuse

Stockmanny...in a single liner....r we game for this coming episode ??? or ....??? your views pls ..if possible...tq

Posted by ronnietan > 2016-11-27 15:21 | Report Abuse

Stockmanmy, can you show the numbers where revenue from ticket sales doesn't cover operating costs? That's the point in the Bloomberg article. I see in Q3/16 revenue from ticket sales does cover, and produce an operating profit.

Posted by ronnietan > 2016-11-27 15:27 | Report Abuse

Sorry, Bloomberg's right as usual. AA's ticket sales revenue does not cover operating costs.

Posted by r°Moi > 2016-11-27 15:33 | Report Abuse

Despite.. operating costs have dropped a lot due to low jet fuel price...

Posted by skng74 > 2016-11-28 08:07 | Report Abuse

http://www.intellecpoint.com/2016/11/airasia-article-on-bloomberg-quite.html

Posted by Icon8888 > 2016-11-28 08:18 | Report Abuse

Bloomberg is not right

ticket sale should not be consider on stand alone basis. Ticket price is determined based on expected ancillary income. The reason it is low is because air Asia knows on average how much more they can squeeze out of ancillary income

Bloomberg is just telling half of the story, to confuse people

ronnietan
114 posts
Posted by ronnietan > Nov 27, 2016 03:27 PM | Report Abuse

Sorry, Bloomberg's right as usual. AA's ticket sales revenue does not cover operating costs.

Posted by r°Moi > 2016-11-28 14:13 | Report Abuse

.


Aviation is capital intensive..... borrowing... goes without saying

It is just whether it is by way of loan or off balance sheet by way of operating lease

So... it is not surprising if Tony has operating leases from 3rd party lessors.... this can see from the operating lease expense




Then.... the next question is...

Where does the airplane in question come from??



The 3rd party lessor got it from airplanes ordered by Malindo?

The 3rd party lessor got it from airplanes ordered by itself?

The 3rd party lessor got it from airplanes ordered by AirAsia?


Must be airplanes ordered by AirAsia isnt it... got discount because AirAsia orders a lot.... powerful




And... so lie the contentious point raised by the article...


How many airplanes have AirAsia sold to 3rd party lessors??

How much were the profits made in selling the airplanes to these lessors?



The article says... A LOT A LOT.... till AirAsia is dependent on it... and this profit will be out of the window.. will follow AAC when it is sold....



.

Posted by calvintaneng > 2016-11-28 15:09 | Report Abuse

Ah Moi,

AirAsia now at tail of bull run. Nothing much left now.

BETTER BUY OIL PALM COUNTERS AS CPO CROSSED RM3,000 A TONNE