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Air Asia X : IPO, Air Asia X
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river.sand
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 Nov 1 2012, 03:02 PM
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I am always skeptical as to whether the concept of budget airlines can be applied to long haul flight. AAX has terminated the services to Europe and several cities in India.
For a start, unlike AA, meal is not optional in AAX; secondly, the seats have larger legroom.
One tactic used by AA is this: when an planes fly from KL to say, Bangkok, it will return immediately. AA thereby saves on hotel bills and meal allowance for the pilots and cabin crew. But this tactic is not applicable for flights from KL to Europe.
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river.sand
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Nov 1 2012, 08:44 PM
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QUOTE(zitis @ Nov 1 2012, 08:07 PM) Thanks for ur info.. Never use AA and AAX before.... Always with MAS and firefly  You must be rich  The last time I flew with MAS was on company money 
Added on November 1, 2012, 9:00 pmQUOTE(gark @ Nov 1 2012, 08:00 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...  I thought AAX's seats can be reclined? Saw it in the newspaper... This post has been edited by river.sand: Nov 1 2012, 09:00 PM |
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river.sand
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Nov 2 2012, 09:01 AM
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QUOTE(zitis @ Nov 2 2012, 02:36 AM) Ermmmm.... Not becoz of rich, but i like MAS and firefly based on their superb sevice, hospitality and comfort.... My friend said AA and AAX flight attendants are similar to sales girl... Am i rite? Can't comment on the salesgirl remark, but I don't like the All Blacks uniform of the male flight attendants. Women look slimmer when they wear black, but men? 
Added on November 2, 2012, 9:18 amI think the value of AAX lies in its feeding of AA. For example, Aussies fly on AAX from Gold Coast to KUL, then proceed to Langkawi or Phuket on AA. Tony is happy so long as the loss of AAX is offset by the gain on AA. But why should we invest in AAX? This post has been edited by river.sand: Nov 2 2012, 09:18 AM |
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river.sand
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Nov 2 2012, 11:42 AM
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QUOTE(gark @ Nov 2 2012, 10:57 AM) 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  How do you get work out the Debt/Equity to be 3.61? On page 256 of the prospectus: Total borrowings = 1382 million Shareholders' equity = 518 million => Debt/Equity = 2.67 D/E above 2.0 is common among airlines, I think... |
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river.sand
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Nov 2 2012, 12:50 PM
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QUOTE(gark @ Nov 2 2012, 12:04 PM) 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  Oh, there are several definitions for D/E. I often use the following two D/E = (long term borrowings)/equity D/E = (long term borrowings + short term borrowings)/equity AA's D/E used to be higher, but they have progressively reduced it This post has been edited by river.sand: Nov 2 2012, 12:51 PM |
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river.sand
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Nov 2 2012, 03:16 PM
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QUOTE(gark @ Nov 2 2012, 12:17 PM) 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... For long haul flights, the fuel tank of the aircraft has to be loaded up. But here is the problem: Jet fuel add to the weight of the aircraft, which in turn affects fuel economy. SIA is also going to shelved its non-stop flights to LAX and New York. This post has been edited by river.sand: Nov 2 2012, 03:24 PM |
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river.sand
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Nov 4 2012, 08:12 AM
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Tony Fernandes was interviewed by The Star. He now brands AAX as medium haul budget airline. This seems to suggest the original model of long haul budget airline doesn't work.
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river.sand
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Nov 4 2012, 08:43 PM
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QUOTE(asambuffett @ Nov 4 2012, 05:39 PM) this LCC LHF is a new concept and still under experimentation. different from LCC short haul . its a proven model. Proven by Southwest Airlines and Ryanair, copied by AirAsia. But Tony Fernandes says other LCC copy his model... |
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river.sand
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Nov 5 2012, 08:44 AM
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QUOTE(gark @ Nov 3 2012, 09:35 AM) They are profitable EBITDA... just like P1.. always mention EBITDA only... AAX plans to use the proceeds from the IPO to pay back bank. With the bank interest reduced, maybe it will record positive profit before tax Also, it has ceased long haul flights to/from Europe, and focus on 'medium haul' flights. Perhaps that is workable. Let's see  |
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river.sand
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Nov 27 2012, 04:46 PM
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AAX records 40.7% passenger growth in Q3 2012... http://www.bernama.com/bernama/v6/newsbusiness.php?id=711814This post has been edited by river.sand: Nov 27 2012, 05:14 PM |
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river.sand
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Jun 14 2013, 08:52 AM
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Hong Leong says fair value is RM1.20... Attached File(s)
AirAsiaX___20130614_HLIB.pdf ( 246.8k )
Number of downloads: 274 |
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river.sand
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Jun 15 2013, 07:55 AM
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QUOTE(madguy88 @ Jun 14 2013, 09:41 PM) Reasonable price - which can be very subjective. |
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river.sand
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Jun 17 2013, 05:03 PM
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QUOTE(asambuffett @ Jun 17 2013, 04:48 PM) yup, my understanding is that Buffett refers to the FSC ...not LCC short haul. btw, im skipping this IPO too. although it has a great name and a great entrepreneur driving it. this LCC long haul model are experimental and i dun like to experiment on it. prefer AA 5 times more.  Asam Buffett disagree with Warren Buffett?  BTW, AAX is no longer LCC long haul. It's medium haul now. Regardless of what, airlines are still high risk investments. For a start, their profits are subject to oil price. Secondly, this is a hot industry. If AAX is successful, competitors will come in. Malindo also plans to do medium haul flights. |
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river.sand
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Jul 10 2013, 09:39 AM
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Inching up, now 1.28...
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river.sand
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Oct 17 2013, 09:41 AM
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QUOTE(Oracles99 @ Oct 16 2013, 09:50 PM) If u buy at TP, it means u have no money to make. They say u may make $ in the long term. But how long is 'long term'. John Maynard keynes puts it correctly (he is referring to letting recession heals itself instead of government taking proactive measures to end it): "In the long term, we are all dead". That is probably why no investor wants to buy at TP  TP is different from fair price. TP is something into the future; FP is what a stock is worth now. Normally, investors buy at or below FP, and sell at TP. (I will keep a good stock even if TP is hit.) |
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river.sand
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Dec 20 2013, 05:19 PM
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QUOTE(Sarah Jessica @ Dec 20 2013, 04:38 PM) Saw some positive news about this company in the newspaper today. Should I buy now or wait for lower price? How do you know if it will drop further Buy if you think its price is great... BTW, I owned AirAsia (not X) before, but never felt confident with it This post has been edited by river.sand: Dec 20 2013, 05:37 PM |
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river.sand
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Feb 26 2014, 12:27 PM
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0.865 |
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river.sand
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Nov 19 2014, 08:30 PM
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QUOTE(SKY 1809 @ Nov 19 2014, 05:30 PM) I would rather sack the Boss by selling off the shares..... How Big is A Asia X or hoping for Govt to take over like MAS ? Not many companies have the Cashflow to burn hundred of millions for 3 months.. Air Asia, Tune Insurance all can be white knights... |
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