QUOTE(Boon3 @ Apr 30 2014, 10:17 AM)
MAS does not have such a spiraling debt issue as AirAsia.
IINM AirAsia recent plane order is more than 50 billion ringgit.
50 billion ringgit.
AirAsia currently have 1 billion + cash...
Cash is decreasing each quarter.....
not an issue?

Now purchasing plane model change already.. it is based on lease.. no one buys planes with cash anymore.
Example.. Air Asia buy 1 plane for USD 300 million for example..
Air Asia does not hand the cheque to Airbus and take the plane. Instead Air Asia will 'lease' the plane for USD 300 million for 20 years for example, each year pay USD 15 mil in lease to Airbus. Technically the plane belong to Air Asia until expiry of lease when it will revert back to Airbus. Usually this is done with 0%-1% interest rate as incentive by airbus to sell more planes.
As this is a long term lease, the asset is recorded and liabilities also but does not affect the actual cashflow.
As long as profit generated per plane > lease payment per plane, they should be able to manage the cashflow.
But then again... never buy anything with wings on 'em.
This post has been edited by gark: Apr 30 2014, 12:02 PM