Posted by David > 2020-06-14 14:56 | Report Abuse

Invert, always invert.

What do I want to avoid : Airlines (AirAsia)

Invert : 10 years down the line, people will still travel. SARS, Zika, 9/11 etc came and gone. Covid19 travel restrictions are just temporary.

Invert : Many airlines are already on the brink of bankruptcy. Whatever funds AA raised might not be enough. Singapore Airlines raised S$15bilion (RM46 billion) to survive.

Invert : With all competitors wiped out, the crisis will benefit the fittest of the lot. AirAsia could possibly control most of the regional air traffic.

Invert : Business flying will be less popular in the future with more video conferencing, shift of travelling method to high speed rail. Airlines will continue to bleed cash.

Invert : Tourism may get sick, but it will never die. There's still a lot of room for growth for airline travel in SEA even with HSR in place.

Invert : Airlines are lousy business models. High competition, high operating cost, low margins, customers price sensitive.

Invert : New competitors could emerge in the future, but customer acquisition cost would be high. In next 5 years, Tony targets non-airline business to contribute 60% of revenue. If they can monetise all their data, AA can be a travel tech giant. not just an airline.

Conclusion?