should go less than RM1 tomorrow.

company loss + political crisis + global crisis + coronavirus + company scandal .... really all in one. Couldn't be worse!!

Early morning optimism

back to RM1. You can buy now! 

Meanwhile in today's news... According to Mavcom, between Jan and Feb 2020...

"The spokesman said Malaysia Airlines cancelled 376 flights, AirAsia 644, AirAsia X 114 and Malindo 442."

644 flights cancelled.... March figures not included...

Flights cancelled means lost of revenue...

For a company like Airasia, which is so financially engineered, how long can it survive?

How much per quarter does Airasia require to pay for its airplane leases? How many hundred millions?

Other financial costs? How many millions?

USDMYR has been swinging up and down like crazy...
Interest rates has been swinging....
And oil is now plunging...

Wonder how Airasia millions and millions and millions hedging is doing?

Technically no since MOST airlines hedge their oil requirements.

In a normal business sense hedging is OK but on the other hand, some abuses it and uses hedges as a form of betting.

Airasia current fuel hedges amounts to 14.8 million barrels. Ahem. This info can be found in their qr report. As a gauge, go run thru this figure and compare previous years amount and one can have a fair assessment if Airasia is over hedging or not....

So anyway this 14.8 million barrels is already hedged at X price. And Airasia said "For the year 2020 and 2021, Brent swaps represents up to 73% and 20% of the Group’s total budgeted fuel consumption each of the years respectively."

Now fuel prices has crashed. Prices already hedged at a higher prices. How to untung? Err.. Keep buying fuel hedges? What if fuel continues to fall? Airasia cash flow so good meh?

Continue...

https://www.theedgemarkets.com/article/aira...all-fuel-hedges

That's an old article... but interesting points to note...

1.He added that at US$50 per barrel, it would have to incur a total of US$481 million of fuel-hedging losses. - so said Ah Tony back then. Also see how it said it wanted to come clen with its hedges back then?

Anyway atm, oil has just down the same. It has plunged... So would the plunge in oil helped AirAsia? It would ONLY if Airasia bought spot prices of the oil.

2. Read the part about credit interest rates swaps...

Current hedged amount as per latest qr shows 1.8Bilion.
LOL. A lot of money hedged, yes?

And rates have come down hard... but again for Airasia it had already hedged at a higher price.....

Ps... you can change your hedge if you unwind your existing hedges... which means millions of losses.

On the other hand, you should blast other stocks also.

mahb is a plc, is not gomen.

gomen may be is the controlling shareholder of glc, glc is not gomen.

din I tell u lol.

Price increase will be across the board.

Full service fares will be even more expensive with social distancing measures. (Unless governments pumps in more cash to offset the price but this is clearly not sustainable).

Low fare carriers fares will also rise in tandem to cope with social distancing measures. However the overall price will still be substantially lower than full service carriers’.

Carriers need to be lean and operationally efficient to survive.

Trading suspended for airasia

Contradictory statement boss.

If the company is very well run.. it wouldn't need any cash injection right?

If the company is very well run.. it wouldn't be starring at over 1 billion in paper loss from hedging as at 31st March 2020.

If the company is very well run.. it boss wouldn't have been accused of the bribery scandal...

i could go on and on.......

right... AA, a private co. is surely looking at... GOMEN!!

can also persuade gomen to armtwist eeepf or kazanar to lend la...

everyone know 1emdeebee methods.

Castle in the air assets.