5 planes aborted could mean less big fat special dividend, and also second special dividend (if any) to be announced.
Correct me if I am wrong, I think AirAsia owns around 200 planes and sold 70 and selling 25. The rest are the newer planes. Near term unlikely to sell more. Even if there is, negotiation takes a long time.
I note that IB analyst didn’t take into account for the last 5 planes in their research.
Well, at least AAC is finally concluded. Still a 1b USD deal, done!
Special dividend is short term, for long term, AA built the business model which: (1) minimal gearing (2) partnership with plane company, agent to sell the airplane (AA to build stable flight route, then create the occupancy and sell to third parties (3) operations efficiency (Senai Airport, Johor already implemented faster IT system).
The balance risk is whether Airports able to support it IT transitional requirement and the oil price is long run (oil price, this is considered external risk).
For the brand name and business created, TF wont let this legacy to be fallen and it create potential merger and acquisition by larger group of investors all around the world.
As long have long term stable dividend yield which can cover your cost, then the balance we just wait for continuing development. If AA is a failure, today it wont be our talking topic. It is well recognised in the regions and become one of the success story in the world.
To me AA is not only owned 200 planes, as long this franchise worth and well recognized by consumers. Then the number of planes for future is unlimited, when it purchased, then immediately can packaged as a "financial instrument" to sell forward to another leasing company investor. TF is a great finance guy and this is what he doing now.
And the leasing company in US to buy planes to lease is more logic than immediate invest in foreign companies which have forex exchange fluctuation risk.
Just imagine, the US company buy the planes then rent it back at US dollar. This is a safer investment to them.
Or the other way round, take the US Dollar to convert into RM to invest in Malaysian/Foreign companies. Although there will be increased in nominal value, there will be foreign exchange loss whne you realised it which may offset your nominal gain.
You see, this is logical business model which current AAGB moving forward. Frankly speaking, if you really studied detailed, you can learn a lot about how the great business man bring the company to another model and we are now part of it. This is the most interesting part.
Buyer aborted the purchase of 5 planes first or AA can't deliver the 5 planes in time first? If it is AA's fault, does AA need to pay any compensation to buyer?
1. AAC was formed in 2014, there were already talks of selling some aircrafts at that time. The sale officially started in mid-2016, now after 2 and a half years, finally its done. The remaining 5 planes ownership are still here within airasia group, leasing to 3rd party, that means generating income also.
3. Now finally AAC is done. TF and Airasia will continue to create more value for us. (His goal is to make Airasia's market cap more than Singapore Airlines, then he will retire. Last time I checked, its RM12/share. )
Up next: a. IPO of MAA? IPO of MAA is very likely to happen. The company has restructure all subsidiaries to prepare for MAA to be listed.
b. Last year TF mentioned he hopes to get dual listings to be done by his birthday. Maybe some other year's birthday?
c. Castlelake and more? Eventually Airasia will spin off all non-core assets.
Ttreeinvestor, yes, long term value is important. However, Airasia is in a situation that whatever the management do, the market refuses to give a fair valuation of say, PE of 10. A good quality company like Airasia should be valued at 15-60 times PE. So, to enhance shareholder's value, management choose to actively push up the price to reward shareholders.
Its a long fighting journey for TF and management, dumb analyst who can't even use a calculator properly say too much debt. Now debt is gone, TP still RM3. dumb analyst C say oil price too high, when oil price drop gives TP RM6, now price of oil is halved, they give TP of RM2.12.
Now TF says maybe our financial statements too complicated, dumb analyst don't know how to read. So, we simplify it.
The problem is not with the company, but our analysts are dumb.
Selling less aircraft is good news as AA will gain more $$ because of discounted aircraft price. Selling these aircraft actually long run make less money because due to sell cheaper to leasing company. The advantage for AA is can get back capital for reinvest..
Betkaukau I also cannot understand why they bashing AA Either I miss something or they trying to buy cheap la I sooner sell to the smaller investor cheap la
Jaya I also cannot understand why u keep over promoting AA Either most professionals aren't overly optimistic or you are just promoting non stop to get others to come in and push prices up so u can profit Sincerely hope the the big guys push all their load to u and u keep collecting
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supersaiyan3
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Posted by supersaiyan3 > 2019-01-10 11:44 | Report Abuse
5 planes aborted could mean less big fat special dividend, and also second special dividend (if any) to be announced.
Correct me if I am wrong, I think AirAsia owns around 200 planes and sold 70 and selling 25. The rest are the newer planes. Near term unlikely to sell more. Even if there is, negotiation takes a long time.
I note that IB analyst didn’t take into account for the last 5 planes in their research.
Well, at least AAC is finally concluded. Still a 1b USD deal, done!
Huat lah!!!!