Posted by stockmanmy > 2016-11-28 10:25 | Report Abuse

Price Waterhouse can be taken to court for misleading accounts if Bloomberg is correct.

so...most likely, Bloomberg do not know themselves the seriousness of its accusations....probably the reporter is an Economics graduate and not a Chartered Accountant.

Posted by ronnietan > 2016-11-28 10:34 | Report Abuse

If AirAsia keeps proceeds from sale of Asia Aviation, that would bolster its B/S, but the market is hopeful or counting on proceeds going out as a special dividend. In which case, it loses its operating profit from leasing, while B/S remains highly geared.
One difficulty in AirAsia at this time is its business model based on USD loans while revenue is in Asian currencies.

Posted by valuelurker > 2016-11-28 11:26 | Report Abuse

"If the lease is an operating lease, then any gain is recognised immediately if the sale and leaseback terms are demonstrably at fair value"

I dont know which part of that sentence you dimwits dont understand

Posted by r°Moi > 2016-11-28 14:12 | Report Abuse

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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....



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Posted by valuegrowth > 2016-11-28 15:04 | Report Abuse

rMoi, no, it's not necessarily 3rd party lessor get these aircrafts in question from AA. Despite big order AA had make, it would come some time that deliveries of new aircraft can't meet AA's expansion need n AA have to lease from lessor. But it's true that quite a lot of aircraft AA leased from 3rd parties r under AA's SLB.