Posted by CynicalCyan > 2021-10-03 14:20 | Report Abuse

If you believe in it, it will be true

Posted by Keyman188 > 2021-10-03 14:21 | Report Abuse

So sorry to say Keyman188 definitely would not touch aviation stocks in Malaysia...

So naive to say Keyman188 until now still can't understand how to revamp...reshuffle or restructure current aviation diplomatic problems...

So nervous to say...Keyman188 let those warriors still betting the hope to invest...



Amboi + Adui...

Posted by Sslee > 2021-10-03 14:36 | Report Abuse

Choivo capital has below to say about lease income:

In 2007, they secured an order of 130 Airbus A320’s for delivery up to 2012, planes worth easily 10-20 times the value of the company then.

They then increased this amount to 200 Airbus A320’s by 2008.

In 2011, they ordered another 200 of them, and from this order, becomes Airbus’s single largest customer.

In 2012, they placed orders for another 100 of them, and in 2016, they did it again by ordering another 100.

By placing such huge orders, they were also able to obtain discounts of 30% or more off the list price, and get the planes customized to suit their needs exactly.

In addition, as their initial orders were made just after the financial crisis, and before the boom in low cost airlines (A trend that was sparked by Airasia) in Asia, they were able to buy large amount of planes at a discount from the already low prices that were at the low end of the cycle.

This allowed Airasia Group to charge its Joint Ventures and Associates leasing fees for using their planes (The company AAC was created in 2013 to manage this) and it also enabled them to be in a business to of selling planes and slots to airplane leasing companies when the airline boom started.

In just a few years, this would go from a cost cutting measure, to a highly profitable venture and one of the key reason for Airasia’s profitability.
Aircraft Operating Lease Income

With the purchase of these huge purchase planes to fund their regional ambitions, as stated previously, Airasia, the Group Company now had a new income stream that would grow far more profitable than expected.

It would not be unreasonable to say that by 2016, this has grown to be their second largest revenue and largest profit contributor.

Without it, the Airasia Group would be lossmaking.

Externally, this also caused huge headaches with accusations by GMT Research that Airasia was only profitable due to the leasing of these planes resulting in profit transfers from unprofitable regional Joint Ventures, to the group holding.

Internally, i’m sure the other joint venture or associate partners did not feel comfortable about this as well, as it could be seen as Airasia Berhad milking the associates for all its worth.

This culminated in the sale of the planes and the leasing business

28 Feb 2018 (Completed 31 Dec 2018) – BBAM Limited Partnership / FLY RM 9,775.6 million and RM 262.3 million (82 Aircraft and 14 Engines)
24 Aug 2018 (Completed 8 August 2019) – Castlelake L.P. USD 739.5 million (RM 3,559.5 million) (25 Aircraft)
25 July 2019 (Completed 31 December 2019) – Castlelake L.P. (RM 1,240 million) (14 Airbus A320-200)
Resulting in net gains of RM 298.8 million and RM 101.54 million, but a net loss in profit of around RM 643 million p.a until the new planes come in.

Posted by bsinvestor > 2021-10-03 15:31 | Report Abuse

HOOOOOOOOOOOOOOOOT 9999999999999999999999999999 EEEEEEEEEEEEEEEEEEEEEEEEEEE

Posted by chinaman > 2021-10-03 15:33 | Report Abuse

Tata Son bail out Air India...so, which private company dared to bail out this biawak??

Posted by chinaman > 2021-10-03 15:36 | Report Abuse

Airasia myr25billion + AAX myr45billion = total myr70billion total liability....use tax payees $$$ again??? sum is too big...how to stomach in?

Posted by Jlee88 > 2021-10-03 20:38 | Report Abuse

What a poorly written blog post that is filled with bias right from the start till the end reflecting only on one side of the story which every AirAsia investor knows. It even begins with "Basically AA is PN17 Company with total equity of negative RM 5.022 billion." The author even made statements you can neither prove nor disprove such as "Someone said once AA start to fly it will earn Billion per year. Is that so and do you know how AA earned its billion?"

Honest opinion to the writer of this blog post, your blog post is terrible. Please stop writing if you are writing blog posts of this quality. Not mentioning that it is pretty obvious that you are pushing an agenda here.

One word, bias.

Posted by i3lurker > 2021-10-03 22:02 |

Post removed.Why?

Posted by Sslee > 2021-10-04 07:28 | Report Abuse

Good morning i3lurker,
There is no stupeeed people only evil shark and stupeeeed followers ready to be conned by the evil shark like follow the tide' Suiyee Sucker Bilis to be eaten alive by sharks.

Posted by KingKong_Doll > 2021-10-04 08:34 | Report Abuse

mini evergrande?

Posted by Bgt 9963 > 2021-10-04 08:48 | Report Abuse

Everyone can buy...

Posted by In_Sight > 2021-10-04 11:56 | Report Abuse

Lousy post lol. You will need to delete or hide your face very soon.

Posted by SunnySunshine > 2021-10-04 12:35 | Report Abuse

zero, that’s it

Posted by Sslee > 2021-10-04 13:04 | Report Abuse

Hahahaha,
Any reason why I should delete the post or hide my face when what I present are facs and figures taken form the annual report?

I stanby what I wrote, if you have better facts and figures you are welcome to put your facts and figures across.

Perception is not reality. Perception and sentiment influence Mr. Market mood but when reality hit make sure you are not caught swimming naked.

Posted by i3lurker > 2021-10-04 13:15 | Report Abuse

https://www.ibtimes.com/bernie-madoff-victim-commits-suicide-charles-murphy-plunges-death-nyc-2516386

Posted by Philip ( buy what you understand) > 2021-10-04 13:25 | Report Abuse

Well written article lee, you have summed things up very well, except for one more important point. A lot of the new bonds raised can be called up at any time by the banks if they view it as a lost cause. Especially the recent loan by sabah development bank of 300+ million. If aa cannot pay that interest lien on that soon, Kevin Fung will be very very stressed out haha, he will probably have to call in the chips to get back whatever they can and watch the dominos fall. As the saying goes, when a margin call comes you need to act decisively and fast and not delay. The longer you wait the worse it will get.

Posted by JeevS > 2021-10-04 14:25 | Report Abuse

apa ni? write article no conclusion or personal opinion. But thanks for sharing

Posted by cheeseburger > 2021-10-04 14:27 | Report Abuse

Everyone thinks the airline would fly when the gomen allow interstate travel or open the border. There might be a spike due to market sentiment however it will later cool down and back to the reality. Enjoy the roller coaster ride with AA.

Posted by cheeseburger > 2021-10-04 14:30 | Report Abuse

After reading the above, my brain is telling me: dont touch this stock!

Posted by keown83 > 2021-10-04 17:10 | Report Abuse

@cheeseburger yes u shouldn't touch it as its already fly when pipu bought it below RM0.95..now its already going to reach RM1.20

Posted by VolatileIsMyGold > 2021-10-04 17:12 | Report Abuse

I heard AA is working on a flight to Mars

Posted by JeevS > 2021-10-04 17:13 | Report Abuse

@cheeseburger stick to your mcburger

Posted by keown83 > 2021-10-04 17:13 | Report Abuse

@cheeseburger or u can buy this counter when its already reach RM4 where IBs & this guy make a very rosy prediction with ridiculous TP like what happened to topglove & suchs in glove sector..yes, go all-in when it happen if u want..its fun to lose money big time sometimes, isn't it

Posted by JeevS > 2021-10-04 17:25 | Report Abuse

@Sslee can you write more articles... very ong le Chao Yun fat! God of gambler haha

Posted by Thorman > 2021-10-04 17:33 | Report Abuse

@SSlee

You are making a mockery of yourself.

Put your knowledge to good use instead of carping.

Posted by Sslee > 2021-10-04 19:06 | Report Abuse

Hahahaha,
You don't like the massage or the massager?

The massage is from AA financial report and the massager is Chao Yun fat! "God of gambler" but unfortunately/fortunately I already learned my lesson and don't gamble.

How about you?

Posted by Thorman > 2021-10-04 19:16 | Report Abuse

Well, shortfall is temporary.

Trust is prime factor.
If lenders believe in the potential, they can waive or wait.

Besides, this loss is due to pandemic, not self inflicted.
Understanding the potential is important than harping on losses.

If TF is forced to liquidate, it's not a big loss for him.
He had a good run for almost 20 years.

I don't mind burning some cash for a globally recognised company under an able hand.

Posted by VolatileIsMyGold > 2021-10-04 19:18 | Report Abuse

I heard AA providing special in flight massage soon

maybe by gong li/kajol mukerjee lookalike retired ex-stewardess

for ladies, massage by dwayne johnson lookalike ex-steward

Posted by Thorman > 2021-10-04 19:21 | Report Abuse

Yeah, they planning to hire big fat ass and tittie shaking dancers too.

That would help boost sales.

Would PAS object?

Posted by i3lurker > 2021-10-04 19:22 | Report Abuse

I heard AA is flying to the sun.... at night .... of course


Posted by VolatileIsMyGold > Oct 4, 2021 5:12 PM | Report Abuse

I heard AA is working on a flight to Mars

Posted by DreamEmperor > 2021-10-04 19:23 | Report Abuse

Oh yeah?

Posted by DreamEmperor > 2021-10-04 19:25 | Report Abuse

ha ha, nice try

but the sun is always at a few million degrees celsius

Posted by Sslee > 2021-10-04 19:39 | Report Abuse

Trust is prime factor.
This explain what happen to AA market price trust!!!.
But in commercial world is trust good enough to enable Bank to loan you billion?
Know what is Danajamin Prihatin Guarantee?

KUALA LUMPUR, Aug 5 ― AirAsia Group Bhd (AAGB) has gained gross proceeds of US$56.83 million (RM239 million) from the merger between Fly Leasing Ltd and Carlyle Aviation Partners.

In a statement today, the low-cost airline said it had acquired 3.33 million of Fly Leasing’s shares on August 30, 2018 as part of a cash-in-kind consideration for the earlier divestment of AAGB’s aircraft leasing operations undertaken by Asia Aviation Capital Ltd to entities managed by BBAM Ltd Partnership.

Group chief executive officer Tan Sri Tony Fernandes said the transaction was a much-welcomed boost to the group’s overall fundraising strategy, alluding to the group’s plans to raise up to RM2.5 billion through a combination of borrowing and equity raising.

“We have already raised RM336.5 million from two tranches of private placements earlier this year and continue to renegotiate leasing terms with all of our lessors.

"We have also disposed of 32.67 per cent of our interest in AirAsia India for US$37.68 million, ceased operations in Japan and sold a number of spare engines worth over US$130 million,” he said.

Fernandes added that the group has a number of fundraising initiatives in place to ensure sufficient liquidity.

“We are in the process of finalising a Danajamin Prihatin Guarantee Scheme loan, working on a data-backed loan of up to US$350 million and preparing for a rights issue of up to RM1.02 billion which is targeted for completion in December,” he said.

Posted by Thorman > 2021-10-04 20:00 | Report Abuse

LOL,

The local lenders will NEVER bail AA not because of trust deficit but jealousy.

Posted by In_Sight > 2021-10-04 21:00 | Report Abuse

As lousy as the blog is written i beg you to write more please. One day after you post AA up 11.88%. Please write some more. Plenty of negatives about AA for you to write. You are our LIGHT. Come on. Do us a favour.

Posted by sensonic > 2021-10-04 21:39 | Report Abuse

ABANG, RUGI WANG PUNYA COMPANY BARU NAK GORENG KUAT KUAT.

Posted by Sslee > 2021-10-04 21:48 | Report Abuse

Can it be true that lenders are jealous of AA success that is why lenders do not want to lend money to AA.
Seriously you expect lenders to bail out AA? Or do you expect lessors to bail out AA.

Note:
The lease liabilities amounting to RM 12.9 billion includes deferred aircraft leases of approx RM 2.4 billion.

Posted by Thorman > 2021-10-04 22:12 | Report Abuse

The lenders could be influenced by little Napoleons.

Yes. It is pure jealousy and inability to stomach success by an underprivileged.

Posted by i3lurker > 2021-10-04 22:48 | Report Abuse

of course must buy Air Asia to help the Sharks sell out at high price.

Must sell your wife and children to buy Air Asia, Sharks need your help.

Posted by Sslee > 2021-10-05 07:36 | Report Abuse

Posted by Thorman > Oct 4, 2021 7:16 PM | Report Abuse
Well, shortfall is temporary.
Trust is prime factor.

Ans: Trust Takes Years To Build, Seconds To Break And Forever To Repair.

You can search and see for yourself how many AA customers were disgusted by the way they were treated in claiming refund and cursing AA and Tony for not refunding them the cancelled fight ticket fare.

By the way I am not even bother to claim my refund, take it as my donation to help AA.

Posted by i3lurker > 2021-10-05 07:45 | Report Abuse

You meant to say its for Tony's medical fee and funeral expenses?




Posted by Sslee > Oct 5, 2021 7:36 AM | Report Abuse

Posted by Thorman > Oct 4, 2021 7:16 PM | Report Abuse
Well, shortfall is temporary.
Trust is prime factor.

Ans: Trust Takes Years To Build, Seconds To Break And Forever To Repair.

You can search and see for yourself how many AA customers were disgusted by the way they were treated in claiming refund and cursing AA and Tony for not refunding them the cancelled fight ticket fare.

By the way I am not even bother to claim my refund, take it as my donation to help AA.

Posted by i3lurker > 2021-10-05 07:52 | Report Abuse

but actually your "donation" just went to his Tesla enjoyment

and the satisfaction that his F_U_C_K ratio is successful and actually working.

the F_U_C_K ratio is the percentage of refused refunds

if the F_U_C_K ratio is too high Air Asia will lose customers, so must be balanced carefully.

Posted by Sslee > 2021-10-05 07:55 | Report Abuse

Haha i3lurker I have a very kind heart, my donation mean for AA to refund those really need their money back. But that trust also broken by AA.

Posted by SpeedNpower > 2021-10-05 08:10 | Report Abuse

Ya faster buy pls. I wan exit aldy.

Posted by i3lurker > 2021-10-05 08:25 | Report Abuse

I know for a fact that a lot of teachers stationed in East Malaysia or outstation travel to balik kampung.
and they ONLY have enough money for 2 or max 3 trips per year through extreme savings from salary unless they use 1MDB method and get Jho Low involved.

In remote rural small villages people dun have money to pay you personal tuition fee.
You have to grow your own vege and spray blood from own chicken to get money for flights.

Refused refunds to teachers are very pitiful.


/////You can search and see for yourself how many AA customers were disgusted by the way they were treated in claiming refund and cursing AA and Tony for not refunding them the cancelled fight ticket fare.///

Posted by Sslee > 2021-10-05 09:03 | Report Abuse

TQVM i3lurker, I owe you a big one. Sell armada 0.47 done now q sell at 0.475 and 0.48.

Posted by Thorman > 2021-10-05 09:19 | Report Abuse

Sour grapes are those who did not get their refund.

Alternative is given but they refused.

That explains their constant mudslinging.

Posted by Thorman > 2021-10-05 09:22 | Report Abuse

During lockdown without single flight it survived.

Now with borders to open and internal flights resumed, it will fall?

TF had already introduced some new businesses to supplement revenue.

So, of course it will fall flat on the face, no?

Posted by Sslee > 2021-10-05 10:14 | Report Abuse

The question to be asked is how much cash burn will AA going to incur when fly resume and also cash burn from the new businesses.

If fresh cash is not forthcoming, when AA cash will run out?
When cash run out what will happen?

Posted by Sslee > 2021-10-05 10:17 | Report Abuse

When you already got the answer then tell us how AA going to earn his money to repay deferred lease payment and how long it need to clear all the deferred payments and debts.