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.
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.
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!!!
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....
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.
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.
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......
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....
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?
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.
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.
AirAsia now at tail of bull run. Nothing much left now.
BETTER BUY OIL PALM COUNTERS AS CPO CROSSED RM3,000 A TONNE
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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.