The last time I was in one.. they sell beer.. counted?

MAS also serve beer, liquor and wine...also how?

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Added on November 1, 2012, 12:59 pmDoes it matter who is behind this? Astro failed because of overvaluation, if AAX is properly valued with growth story (and did not strip out too much money) then it is fair game mah.

Astro is deemed overvalue because :-
1. RM 1 billion cash taken out before IPO, resulting in negative NTA
2. High growth India and Indonesia unit taken out
3. Valued at PE 30x, DY 1%
4. no growth prospect, market saturated

All these is clearly written in the prospectus...anyway must understand the IPO process, IPO is used for the owners to cash out thier investment by selling to the public, the owners will have no incentive to sell cheap.

lets see if AAX holds the same water.. when the prospectus comes up, will give it a good review.

This post has been edited by gark: Nov 1 2012, 01:05 PM

I take lots of AAX flights before.. so here is the comment...

1. AAX meal is optional and is 20%-30% higher priced than AA, more or less you are forced to buy unless you wanna starve on a 12 hour flight (but i saw got people bring 'roti'). Also they sell entertainment(very less buyer) and comfort kit (some buyer). Baggage fee is also higher.
2. Yes AAX incur hotel cost and meal allowance for their staff... why do you think so many tune hotels opening up everywhere. Where do you think the staff have to stay if there is Tune hotel in town?
3. Not true AAX get more legroom, feel like more or less same legroom as AA flights...

This post has been edited by gark: Nov 1 2012, 08:03 PM

AAX Summary... for the benefit of forumers

Fixed Asset = 2.16 billion (including 700 mil in tax asset and deposits)
Current Asset = 224 mil (only 24 mil cash)
Current liability = 953 mil (including 464 mil short term borrowing)
Non-Current liability = 917 mil long term borrowing
NTA = RM 0.35/share
Debt/Equity Ratio = 3.61

2009 EPS = RM 0.66/share
2010 EPS = RM 0.63/share
2011 EPS = RM -0.36/share
2012 EPS (Proforma) = RM -0.22/share

2009 and 2010 gain is mostly in deferred taxation.. and not based on performance

Operational Profit/loss

2009 = LOSS RM 31 mil
2010 = PROFIT RM 7 mil
2011 = LOSS 60 mil
2012 (proforma) = Loss 10 mil

Now looking at how much future profit AAX can make

Gross Margin

2009 = 3.4%
2010 = 12.7%
2011 = 9%
2012 = 15.4%

Please note that revenue growth has been more or less stagnant in 2011 to 2012.
2009 = 8 planes
2010= 11 planes
2011 = 11 planes
2012 = 9 planes ( ) , 2 plane classified as asset for sale
Future = 2 more plane on order

Revenue per ASK is stagnant 2009-2012, cost per ASK also stagnant 2009-2012, basically cost of fuel is countered by fuel surcharge...

Now lets see what the pricing/share will be

This post has been edited by gark: Nov 2 2012, 10:58 AM

Debt equity ratio = (current liability +non-current liability)/equity = (953 mil+917 mil)/518 mil = 3.61

No D/E ratio above 2 is not common in airlines... AA already super leveraged D/E ratio is only 1.95

This post has been edited by gark: Nov 2 2012, 12:09 PM

Yes you are right.. but we have to see the overall picture.. thats is why we commonly see the ASK cost.
ASK = Available Seat Kilometer, means total cost or revenue divided by number of seats and km traveled.

If you see this the cost increase in fuel has been countered by lowering the non-fuel ASK cost, it means they are using other method to counter rising fuel cost such as shorter haul flights and/or higher frequency flights. In maintaining ASK even though fuel cost is up, AAX is doing a great job...

This post has been edited by gark: Nov 2 2012, 12:18 PM

cause ... price < cost All those cheap flight offer they advertise all rugi one...

If they don't advertise cheap flight no one want to ride then lagi rugi lorr... just imagine if no promote kaw kaw one plane just 10 ppl go all the way to London...

They are profitable EBITDA... just like P1.. always mention EBITDA only...

Kena hit from 1 stock already want to pencen.. you must remeber not every investment is a sure win one, thats why you don't throw all your eggs in 1 basket...(telur lagi ).

Never trust investment house 100%, take with a pinch of salt as some investment house has vested interest. (like those advising/underwriting/cornerstone for IPO....)

IPO = It's Probably Overpriced

This post has been edited by gark: Nov 3 2012, 12:48 PM

Fixed for you... Lately all the IPO is mostly politically connected...

This post has been edited by gark: Nov 3 2012, 12:54 PM

Don't lah mislead people....



Independent non-executive chairman and directors only.. not shareholder.. the real shareholders are below ...



This post has been edited by gark: Nov 5 2012, 01:04 PM

Wow at that price.. it is valued about 4-5x book value...

I take 8-10 hour flights on AAX frequently, yes it's a bit less uncomfortable than normal airlines, but it is not as bad as you make it out to be. Seats have less leg space, but not until the extend that you are in pain or unbearable. I would rate the airline reasonably ok.

BTW always loved the new airplane smell...

This post has been edited by gark: Nov 6 2012, 10:58 AM

AAX have different seats (more recline) and slightly bigger legroom. For AA I always purchase hot seat so have plenty of leg space.

This post has been edited by gark: Nov 6 2012, 11:12 AM

There is a very big 'X' on the tail section.

This post has been edited by gark: Nov 6 2012, 11:16 AM

Try the airline and the service before you buy the shares. As Peter Lynch says, the best stocks pickings are the ones you experience yourself...

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Added on November 6, 2012, 11:20 amQZ = Air Asia Indonesia
FD = Air Asia Thailand

Just more codes for you...

This post has been edited by gark: Nov 6 2012, 11:20 AM

WB once bought US Airways..loss 75% and then said never again to buy anything with wings on them.

See whether successful flight or crash and burn.... (the stock i mean...)

This post has been edited by gark: Nov 7 2012, 11:40 AM