for real?

but I think it'll only reach around RM1.20 ....

Don't expect gov save AA while MAS itself is a black hole

If AA goes byebye, what will happen to all investor money?

No worry. It will go down Later. Mark My word!

Reports on Dr M’s remarks on AirAsia bribery claims inaccurate, says PMO
https://www.freemalaysiatoday.com/category/...urate-says-pmo/

next week drop again

Now 1 Can all in liao

But that's what people said last time. "Banks are too big to fail".
For me, I wouldn't want a company managed by people who are corrupt/committed fraud because I'm not surprised if the balance sheet can be fraudulent too. This makes it hard to make decisions.

The context with banks is different. The US-based banks that failed in subprime were investment banks.

AirAsia is a flight service provider, not a financial service provider. US-based bankers got greedy because of the incentive structure, which allows them to profit on transactions instead of the actual performance of what they are selling. So the business model is lined with moral hazards (eg: they don’t really care if the bond/unit trust/mutual fund/etc they sell you is junk because it’s not their money).

AirAsia takes your money and provide you a flight service, and that’s the end of your relationship as a customer with the company. If you find it tolerable, you will return. If not, you won’t. So it’s AirAsia’s incentive to not make the low cost flights too miserable.

Yes, COVID-19 dampened the demand, to put mildly. But there are upcoming festivities that will provide some demand for AirAsia, at least domestically. In terms of revenue, AirAsia unlikely to drop 50% over two quarters.

As for the corruption management etc, well, I don’t have insider info nor do I work in there. I just have this fundamental belief that the scandal will sort itself in two years. Either Tony acquitted or management roles change. But the company will still be there because the business model itself is not hinging on if Tony took bribes

You have your points.
So does yygdrasil.

However, let's talk about the company itself.

How did Airasia got so big?
Was it because it used debts/leverage to built itself up?

Buy/borrow/buy... use whatever cash flow to buy new planes again.

That was what it did. Agree?

That was obviously not gonna to last. It got to the point where Airasia had only less than a billion in cash and more than 12 billion in loans.

That buy and borrow had to slow down. So it asked to defer its obscene backlog of new planes.

Got breathing space but not enough. Clearly it was grossly over leveraged.

** in the midst came that 18billion usd new airplane order. In which the following year, that chapalang F1 team got a usd50 million sponsorship. The F1 team that was not owned by Airasia. Duh **

Next came the leasing plan.

Sell whatever plane it had and then lease back. Use the money to pay back loans. And yeah, to hook investors in, despite in dire need of money, Airasia gave away millions in dividends.

New planes also sell.

So the balance sheet bank borrowings came down in a hurry. But the lease amount soared.

Financial engineering at its finest.

But now with lesser planes flying, can Airasia be able to finance its leases???

And yeah, Airasia still got plenty of planes ordered with Airbus. Latest quarter, the amount is 99.6 Billion.

99.6  Billion.  Not too much?

Can this buy, sell and lease back be played for so long?

And yeah, every company hedges. It is a norm. However, there are some companies who over does it their hedging turns into gambling. Have you check how much? If I say their total hedges is more then 2.5 Billion... would you say too much?

Many years ago Airasia once lost more than 500 million in hedging. Tony had to apologise and say no more betting. But yet after these many years, Airasia is still hedging. Betting on oil, interest rate and currency. All which had been having huge swings. A bad hedge could see Airasia lose millions.

Latest qr? Any hedging losses? Better go check......
And yeah, its qr is getting more complex to read. So many inter related companies. How does one really gauge the validity of its accounts?

So if I have to base any trading decision on such a company, I always, always take the easy way... No bet. If it goes up, so be it.

Anyway gl.

they just declared they've sold 50k AAX unlimited pass within 1 week

that's fast RM25mil revenue injection within a week!

they just declared they've sold 50k AAX unlimited pass within 1 week

that's fast RM25mil revenue injection within a week!

No dividends to be announced ?

expected losses would be rm 1bil or more for this financial year...
u think? have dividends or not 

5 cents liao. those who bought at 0.98 untung lah.

Wah! Airasia panda leh. Hedged cheaper than KLM.....

Huh..
And now the price is almost half 😒🤣

Hitting as low as 0.91 already today! Steady, ready, top up!