The thing is that Airasia got this money to give out as dividends when they sold off their planes to the leasing company.

Prudently, how could they give the money out as dividends when Airasia clearly needed those money.

This was so wrong.

Yup. The major shareholders who had the special privilege of subscribing to new shares. Sorry. Lots of new shares.

So if this company in the near future, is of need of a bailout...
How would you feel?

I wonder how Airbus would feel...

They were the ones footing the sponsorship in millions...
They were the ones paying the fines too for the sponsorship...

LOL!!

Does BDO even understand what corporate governance is?

I wonder how Airbus would feel...

They were the ones footing the sponsorship in millions...
They were the ones paying the fines too for the sponsorship...

LOL!!

Does BDO even understand what corporate governance is?

These are just independent experts hired by them.. not by SC or MACC. Not cleared yet.

I think some are buying hoping gomen will bail them out.

Too big to fail kind of thing.

i still dont understand why it hasnt gone down. and from what i see, everyone seems to think that this is a buyer's market. everyone is buying!

amazing...you would think that everyone would be worried but even public bank hasnt gone down. perhaps a lot of people have a lot of money

for me I just want to know the reason and understand why it hasnt gone below 0.50 - that's all or perhaps most people are optimistic about the market.

Take a look at AAX instead. They had already tried asking for deferrals...

https://www.flightglobal.com/strategy/airas.../136882.article



As you can see, AAX has a number of lessors... and as you can read from the article, not everyone will agree. If I am the lessor, I would think its wise to just sell the planes....

Borrow from banks with govt guarantee? Interesting but would you, the rakyat be happy that govt is helping a company which TF and his sidekick owns more than 60%? Bailout of 2 who was accused of taking a 50 million bribe? You ok with this? I am not.

D7?

AK?

sorry do not know what they refer to.....

I see.

Never did I mention I will touch AirAsia. I have no interest in it. Seriously. What la.

As for AAX, clearly it was a non investable stock from day one. I dare say so when I am a mere trader.

As for a AirAsia.

Quote: Gomen could charge a premium for its guarantee like insurance company. AK is still liable to banks, is not a bailout or free money like to MH.

The problem with what you mentioned is that because AA adopted the asset light strategy of sale and leaseback, it doesn't have any feasible asset left (if you followed my arguments earlier). Its planes are sold to the lessors. So how could govt even consider giving such a loan guarantee?

And based on AA track record, it definitely does not deserve any bailout at all! That's my opinion and that's what I am stressing.
Got money from sale and leaseback, 5 billion plus, gave it all back as special dividend (a move which clearly benefited the big 2 shareholder!)

lolz..
I don't know want to pity or cry for your noobness...
bib boss @Boon3 knows in & out of AA & its business models..
that's why whenever he post. me look from afar  

My focus is on AA and AA alone la. I am talking about the tree and not the forest and in this case, my issue is on AA.

That AA business was a business built on loans. Financially engineered from day one. Viable? Can loan growth go on forever and ever? Clearly, AA should be a classical business case study on how you can go bust if you over relied on loans.

And this wa how AA was forced to go the sale and leaseback. Read my past postings. At it worst, it had less than a billion in cash and over 12 billion in bank debts. How to carry on? Insane plane orders were placed AA were forced to the delivery schedule of new planes and it was up to its nose in debts. This forced them to do the sale and leaseback. This forced them to be at the mercy of many lessors. Now without their planes as asset collateral how can AA get the bank loans?

Now those 2 special loans. Read la my arguments. The markets knew it. Before the special dividends were paid, AA made an outrageous private placement. Now you know private placement tends to benefit the buyers of the placement shares. And the private placement was made just before the special dividends were paid. Who was the private placement investors? Tony and his sidekick.

Iata codes? Lol. Hey obviously I dunno those codes. Should I apologise?

Well the problem is how AA went about it. It was already overburdened with debts and delivery of new planes. What did Tony do? AA had about 150+ new planes yet to be delivered. Huge debts. And what did he do? He placed a new order worth usd19 billion. Shit load of debts but yet buy new planes.

The next year Airbus made that usd50 million sponsorship to Tony's sports teams. Airbus as we know today was charged with bribery.

Put all this into context and chronicle order... with AA then doing the leaseback... and then the placement of shares... and then special dividends...

Should the country bailout this company, in which the top 2 shareholders stake is more than 60%?

I wish to talk only AA and not AK and certainly not property developers.

By the way, I have pointed out that as per last qr, AA debts is relatively low. All the debts had been engineered to leases which stands at over 12 billion. Mind boggling.

Good night.

I know the answer will be nobody knows.
But just based on your hunch. Do u think air asia will eventually get through this or rather will government allow it to fail.
Is air asia a buy at 0.81 now

Im actually not a fan of his, but as a business entity, it is fine.
Without government help there is no way it will survive?
Anyway say 1 week later tf announces he forgot financial backing or that government is giving a so call soft loan, will the price then appreciate

Why should Govt help this private company? Wont it be a moral hazard issue?

Govenemtn may wanna help but first, will there be political repercussion. Sexondaly does that boost the share price?