QUOTE(felixmask @ Nov 25 2016, 09:23 PM)
Helicopter money by Tony..dig hole to cover another hole creating wing stock. This mean transfer Air Asia asset to new company?
Aiyoh Felix!
What helicopter money la?
The current issue is the leasing company and how it accounts its revenue and profits.
The leasing company - owned by AirAsia.
AirAsia sells fei kei to Leasing Company.
Leasing company leases back to AirAsia and its subsidiaries.
From a local blog...
The blog highlights this article:
http://www.livemint.com/Companies/dXN7jGDv...Asia-India.htmlQUOTE
One accusation (of several) is regarding the leasing of airplanes:
Other mails indicate that AirAsia India may have a received a raw deal while leasing aircraft from AirAsia Bhd. For instance, old Airbus A320s were priced almost the same as new ones. One A320, made in 2009, and registered as VT-BLR, was leased for $320,000 per month; another, VT-ATF, manufactured in 2014, was leased out for $315,788. The prices do not match the prevailing rates provided by an independent consultant. The leased cost of an Airbus A320 aircraft (February 2010 make) is about $235,000 per month. A 2013 make costs about $280,000, according to data from aviation consulting firm CAPA. Expensive aircraft can mar the costs of a start-up airline and Bhatia seems to have raised this in an email last April.
Well, what can one expect?
These are all transactions between AirAsia and its related companies.
And if you read on the blog:
QUOTE
CLSA wrote about the issue of revenue recognition in their CG Watch 2016 report:

Can see how cunning Tony is?
So CLSA is highlighting the issue of "...drastic increase in receivables that have no certainty being collected."
ie. CLSA is asking if these receivables (leasing profits) will be collected or not....
if you spend some quality time reading AirAsia reports...
ending 30.9.2015 Amounts due from associates = 191.481 million.
ending 31.12.2015 Amounts due from associates = 360.854 million.
ending 31.3.2016 Amounts due from associates = 559.389 million
ending 30.6.2016 Amounts due from associates = 647.698 million.
and the latest report ending 30.09.2016 Amounts due from associates is now 706.188 million.
CLSA does have a point yes?
ie AirAsia is charging 'rather high leases' and that (for whatever reason) its associates is 'unable to pay' back to AirAsia....
Given this issue, how much is the leasing unit worth, if this is how it conducts its business?
ps: the leasing unit profit contribution to AirAsia profit is not kacang putih too...