exactly lo.


The bribery case... the insider trading.... can it all be a non issue as long as the stock rises?

what asset is left for AirAsia to use as collateral for bank loan?

planes sold to leasing companies already....

but then they will argue....

this burger stall got a very geng branding wo!
Best in Ipoh, Best In Korea, Bester In Shenzhen and Lagi Bester in Loondon


the value is in the brand name.... kekeke

.... personal guarantee by Boss 1 and Boss 2 worth the 3 billion (that's the sum those experts are saying what AA needs) ??

doubt any will give based on that.

lemme keep post this here : https://www.thestar.com.my/business/busines...or-rm1b-funding

Smooth talking....

https://www.thestar.com.my/business/busines...-back-to-normal

I really give him credit... Excellent salesman...

Till that one statement...



LOL! Like that aslo dare say out loud??

If no leasing... lol... not only cash flow positive but AA will make billions lo...

And he still thinks he did a good hedge.

Doesn't look like he will learn from his hedging failures... and at this rate, future heading losses will happen again.

... and he's still not addressing the core issue.

AA was built on debts. All the problems AA is facing is cos he got greedy and expanded too rapidly, borrowing way beyond its means to built brand name.

And when a house of a cards is built too high.. it collapses.

Does AA deserve the second chance?

Yup. Remembered that fiasco.
They collected the money but refuse to pay MAHB. Kept giving beating around the bush.
That was during the time when their nett debt was over 10 billion ringgit. Go figure.

Other shameful stuff was charging customers for using their credit card. Totlly not giving a hoot over Bank negara directives. Then they got fined. Lol. Such pathetic arrogance from the boss 1.

He got way too arrogant forgetting that AirAsia was built on a debt model.

Can debt grow forever?

He should realise that once he switched to the sale and leaseback (asset light) model that the switch was his last throw of the dice. Whatever asset the company had was all charged to leases. Now what asset does Airasia really have?

Tracing how AirAsia got where it is today....


1. I recall that record breaking deal with AirBus... (google search boleh!)

https://www.bbc.com/news/business-13884433

That happened on June 2011.

and this statement...

So AA had an order of 175 planes. AirBus supplied 89. So company has a backorder of planes not yet supplied 86 planes (worth 19 billion) but it goes on a record buying spree of 200 new planes worth 58 Billion ringgit (based on exchange rate then)(If this is not excessive, what is?)

2. I then checked on the QR report before June 2011.

https://www.malaysiastock.biz/GetReport.asp...t_1Q%202011.pdf

Cash balances then 1.8 Billion...
Total debts then 7.8 Billion! (from page 27. Previous debt the previous year same period is 7.1 Billion. Ballooning debt issue!)

Capital commitment to buy those 86 planes remaining is 19 billion.


3. I remember AirAsia before this, had problems taking delivery of new planes. They had to asked AirBus to defer delivery of new planes. (go search 'Airasia defer plane delivery)

https://www.thestar.com.my/business/busines...partly-deferred




Now putting the pieces together....

AirAsia went on a plane buying spree. Ignoring the fact that it's core cash flow balance had always be weak.

In 2007, buy 175 new planes....
In 2009... choking already... no money... (2009 account showed 700 million in cash and over 7 biillion in loans. How to complete delivery for 19 billion worth of new planes?) So it had to ask AirBus to defer delivery (which is a good thing to do)

By 2011.. cash balance did improved to 1.8 billion but debts remain high at 7.8 Billion.

But in 2011... it went bonkers and ordered another 58 billion new planes (source of problem? Overbuying of new planes... exploding debts?)

But this is where the damning thing is... as we now learned.... AirBus USD50 million bribery scandal with AirAsia happened in 2012!!!!

The year AFTER AirAsia made the insane 58 billion new plane order!!!

In 2015.. the news of the massive Sale and leaseback of planes started....

https://www.todayonline.com/business/airasi...lise-operations

In Nov 2016. Cash balances 1.5 Billion. Total debts 10.3 Billion. Plane backorder is now worth 91 billion!

https://www.malaysiastock.biz/GetReport.asp...32016_24Nov.pdf

In Jan 2017. Completes 1 billion special special ownself share placement to boss 1 and boss 2..

https://www.theedgemarkets.com/article/aira...-shareholders-0


In March 2018. The sale and lease back started....

https://www.reuters.com/article/us-airasia-...t-idUSKCN1GD3VP

In 2018 AirAsia started to pay huge chunk of dividends. Note how the company, which was weak financially, started paying interim dividends in 2017, right after that special special ownself share placement to boss 1 and boss 2.



the numbers and the dates are all there........


And here we are ... 2020.... company is asking for bailout? ( Isn't it crystal clear the company management farked up?) It was choking in debts, it had to the sale and leaseback of planes to ease the debt. But instead of prudently handling the money, AirAsia went on a frenzy and started throwing money back to its shareholders!


So assume AA gets the 2 billion it is asking for.... okay.... no problem...
but we have to address the issue of what next?
Why?
The core fundamental weakness of the company will still remain... which at is... the company simply has way too many planes on back order. Cos once this virus blows over and AirAsia somehow survive, AirAsia will soon have to start take delivery of new planes....
which means....ahem.... new financing!!!
which will also means.... either the leasing amount, which as of today, is at 12 Billion, will balloon much higher...
or else.... the company will have to take on new debts.
Remember backorder of new planes is over 110 billion!!!!

and then we have the issue of their aggressive hedging... in 2009 kena 640 million in hedges... and now 2020, will total hedging losses runs over a billion?
and then in future? How? Can we be assured that in the future, AirAsia would not be hit with another multi million dollar hedging losses once more?

Remember the recent interview... "Right now, we’re trading cash flow positive if you take out the leasing and some fuel hedging that we thought we did a good hedge." where he stubbornly reckons he did a good job!

And the thing about the rights issue.... if AirAsia refuses to do one... clearly it means the boss 1 and boss 2 is refusing to put in own money when the company is in dire straits...

This post has been edited by Boon3: Jul 12 2020, 01:34 PM

The truth is out there.......


That article from the Edgemarkets has one very important point....

https://www.theedgemarkets.com/article/aira...-shareholders-0



That part in bold...

Bursa had to extend that special privilege placement 4 times and that it required boss 1 and boss 2 to borrow!!

Empat kali lo...

Borrow to buy the new shares... 559 million new shares .... the share were priced at 1.80.

The dividends since Jan 2017... ie the dividends since these 559 million shares were issued...



Total dividends given out since then.... 178 sen!!

WOW!!

Borrow to fund 559 million shares at 1.80. Get back 1.78 in dividends per share.

Not to forget the direct shares they had.... Boss 1 had 1,600,000 shares. Boss 2 had 2,000,000 shares

( source:
https://www.bursamalaysia.com/market_inform...?ann_id=2732191
https://www.bursamalaysia.com/market_inform...?ann_id=2732190
)




So would I be wrong to say the following... when AA had excess money, boss 1 and boss 2 would die die borrow to buy new shares in the company so can profit from the dividends...
and now the company is in dire straits.... why boss 1 and boss 2 no want to die die borrow to buy new shares in the company to save it?

and then... when we think about it...
AirAsia had the money...
Yes they had the money, which came from all the disposal of planes but they gave most of it away as dividends...
now.. they want to borrow?

whose fault? wanna to blame covid 19 meh? how about calling it as it? Mismanagement by boss 1 and boss 2!!!

This post has been edited by Boon3: Jul 13 2020, 09:21 AM

What was AirAsia traded price the day AirAsia completed the placement?

AirAsia opening price on 27th Jan 2017 was 2.47.
The special privilege placement shares was priced at 1.80.

Enjoy spamming?

https://www.msn.com/en-my/news/national/que...M?ocid=msedgntp

Mana kedai?

Rather strange that Airbus was willing to pay billions in fines...

Cubalagi

This part also I don't understanding....




Internal inquiry?

why didn't SD do that?

https://www.msn.com/en-my/news/national/rev...m?ocid=msedgntp


A probe launched by Bursa Malaysia into AirAsia in the wake of allegations that the top bosses of the budget airline were part of a massive bribery case involving Airbus came to an abrupt end following the intervention of the Securities Commission (SC), MalaysiaNow can reveal.

As a result of the intervention, Bursa Malaysia, the Malaysian stock exchange, was unable to proceed with the investigation it had announced in early February 2020, into allegations that AirAsia had received US$50 million in bribes from Airbus to secure the sponsorship of a sports team in exchange for the purchase of its planes.

After further investigation, MalaysiaNow can categorically confirm that some time between Feb 11 and 12, 2020, the SC had asked Bursa to stand down from its investigation and to cease all communication with AirAsia Group Bhd and AirAsia X Bhd relating to the Airbus matter.

It is understood that at the time, Bursa was investigating possible breaches of Section 132 of the Companies Act, Section 317A of the Capital Market and Services Act 2007, and Chapter 10 of the Main Market Listings Requirements, in addition to other violations.

It is also learnt that the SC had then told Bursa that it would be taking over the case from that point onwards.

The Bursa Malaysia headquarters in Kuala Lumpur. Bursa Malaysia, the country’s stock exchange, had been investigating claims that the top bosses of AirAsia were part of a huge bribery case involving Airbus.

On Monday, MalaysiaNow reported that there had been no word on the outcome of the probe by the SC, more than two years after the capital market regulator announced it had begun an investigation into AirAsia.

The case against AirAsia first came to public knowledge on Jan 31, 2020, based on court documents filed by the Serious Fraud Office (SFO), Britain’s anti-corruption authority.

The SFO said Airbus had paid a bribe of US$50 million to secure plane orders from AirAsia, in what investigators believed was part of a pattern of corruption by the aircraft manufacturer spreading over about a dozen countries including Malaysia.

The revelations rocked the aviation world, with authorities in several countries launching their own investigations into those responsible. In the process, at least two airline bosses in Indonesia and Sri Lanka were charged or jailed.

The SFO alleged that Airbus had bribed AirAsia for US$50 million in the form of sponsorships of a sports team owned by two persons it named as “Executive 1” and “Executive 2” in AirAsia.

“AirAsia Executive 1 and AirAsia Executive 2 were key decision makers in AirAsia and AirAsia X, and were rewarded in respect of the order of 180 aircraft from Airbus. The payments to the sports team were intended to secure or reward improper favour by them in respect of that business,” the SFO said in court documents sighted by MalaysiaNow.

AirAsia Group CEO Tony Fernandes and executive chairman Kamarudin Meranun subsequently announced that they were stepping down pending an internal probe by the company, which eventually cleared them and reinstated them in their positions.

There has been no public response or explanation from the SC since MalaysiaNow highlighted its pending investigation on AirAsia.

This article of his press briefing...

https://www.theedgemarkets.com/article/capi...-tony-fernandes

Unreasonable?

Quote:

"Datuk Kamarudin and myself remain committed to Capital A's recovery having been actively involved in steering the group through this crisis day-in, day-out over the past two years. We have also personally injected RM257.3 million — out of the RM974.5 million rights issue that was completed on Dec 31, 2021 — to support the turnaround plan," he said.

"However, while we are willing to provide the personal guarantees requested on top of our previous cash support through the rights issue, such a request for us to guarantee everyone’s exposure is unseemly for a public-listed company considering we are but two among many Capital A shareholders which also includes institutional investors," he added.

Really cannot believe he's claiming unfair!

How about the last time?

https://www.theedgemarkets.com/article/aira...-shareholders-0

That time, he borrowed to buy those special placement shares..

Shares were 1.80. Share price was then 2.45+ .... and then due to the sale and leaseback program, he got back 1.78 dividends per share.

Yup the placement of shares were only offered to Boss 1 and Boss 2.

How about the other shareholders?


The recent rights issue, about him putting in 257 million. Well, the others shareholders also put out money what. Apa la.

And now it's unfair to have both of them to be guarantor?

.... and just for the record.... 9 months left....


Pursuant to paragraph 4.1© of PN17 of the Main LR, the Board of Directors of the Company wishes to announce that the Company is in the midst of formulating a regularisation plan to address its financial condition. The regularisation plan is not expected to result in a significant change in the business direction or policy of the Company.

The Company has approximately 9 months to submit its regularisation plan to the relevant regulatory authorities for approval to implement the same, and shall make the necessary announcement(s) with regard to the development thereof accordingly.



Look at the fate of Brahim today...

You write guarantee ah?



Ahhhh.... all I will say is... don't simply bet on it and then latter complain complain complain



p/s Remember AA had already been given chance sine April 2020.... and was given yet another chance June 2021......so do count big big the risk

p/s .... what real steps have we seen AA made to regularise its accounts?

what we have seen is a lot of hoo ha on their SuperApp (which was got few hundred millions of ringgit from their RCUL issue)... a change of name (any FS involved?) ...

p/s p/s how big and how deep is their hole?