Posted by Sslee > 2021-11-10 20:55 | Report Abuse

https://klse.i3investor.com/blogs/PilosopoCapital/2020-08-30-story-h1512605220-_CHOIVO_CAPITAL_Airasia_Group_Berhad_5099_The_RM6_Billion_Baggage_Fee.jsp

Read carefully (revenue from 2000 to 2019) and know where the Profit come from?

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.

Posted by gregorythe2 > 2021-11-11 18:58 | Report Abuse

Thanks for that information. I had no idea; it looks like the report was quite impactful. It is not a very honest way of doing business, although from what I understand the money was still earned under the airasia brand and transferred to the group in an unconventional way. It appears to no longer be an issue for the last few years, and may further explain the group's pivot to digital, seeking those high returns, since they have failed to turn a good profit since they stopped making those leases.

I really appreciate your reply and I'll be sure to dive a bit further back on my quality of earnings evaluation- I had only looked at the recent years, but I obviously need to evaluate the years that they were performing the best if I want to assert that they may do so again.

Thankyou again!