What is your entry price for AA-CL ?

me think this too...the other counter me know is ARMADA...low foreign one ie is MBSB

KUALA LUMPUR, Aug 6 — State-owned Malaysia Airlines (MAS) will swap shares with Asia’s largest budget carrier AirAsia this week in a deal that will see Tan Sri Tony Fernandes help stop the ailing flag carrier from plunging any further into red ink, said industry sources.

The Malaysian Insider understands that the share swap that could see Fernandes getting a 20 per cent stake in the national carrier, will allow both Malaysian carriers to rationalise their fleet, frequencies and destinations within the country and abroad while ensuring MAS returns to becoming a premier airline.

“The deal is on and it should be signed Monday at the earliest,” a source told The Malaysian Insider.

AirAsia’s main shareholders Tune Air Sdn Bhd, owned by Fernandes (picture) and Datuk Kamarudin Meranun, is expected to benefit most from the share swap with MAS as it hold 26.28 per cent of the budget carrier as of July 6, 2011.

The budget carrier’s market capitalisation of RM11 billion yesterday is now two times more than MAS which stands at RM5.3 billion, a decade after Tune Air took over the two-plane operation.

AirAsia closed at RM3.95 per share when the stock market closed yesterday while MAS was at RM1.60 per share.

“This is a deal that has taken such a long time to get done but the current situation benefits Fernandes as MAS is in a bad shape,” another source said, adding that the MAS’s main shareholder Khazanah Nasional Berhad and the AirAsia boss have negotiated five separate times previously.

It is learnt that while MAS moves to reclaim itself as a premier airline, AirAsia X will continue to ply as a long-haul budget carrier while domestic operations will be rationalised with MAS’s Firefly focusing on turbo-prop operations out of the Skypark terminal in Subang.

Firefly began operations out of KLIA this January for flights to east Malaysia, competing with both MAS and AirAsia flights. It also launched a coach service this week for passengers looking for alternatives to the Express Rail Link.

A MAS source also disclosed that the fate of company managing director Tengku Datuk Azmil Zahruddin remains unclear as Fernandes will likely change the management to pull the airline from the brink after its first quarter losses.

It is understood that one of Khazanah’s executive director of investments, Mohd Rashdan Mohd Yusof, could be named as chief operating officer after the share swap. Popularly known as Danny, the former investment banker is the Khazanah representative in the MAS board.

The flag carrier recorded a first quarter net loss of RM242.3 million against a profit of RM310.6 million in the same period a year ago. Azmil took over the reins of the company on August 28, 2009 after the previous chief executive Datuk Seri Idris Jala was made a minister in the Najib administration.

Analysts expect the flag airline to make full-year operating losses for its current financial year ending December 31, in line with higher fuel costs and falling yields. Its sales director Datuk Bernard Francis recently resigned within 24 hours despite having a few more months in his contract.

MAS recently named former managing director Tan Sri Md Nor Md Yusof as its non-executive chairman from August 1, replacing long-serving chairman Tan Sri Munir Majid.

Md Nor managed the airline between 2001 and 2004 where he implemented the widespread asset unbundling (WAU) restructuring of MAS in 2002, involving un-coupling the airline’s massive debts and transferring of the MAS fleet to Penerbangan Malaysia Bhd (PMB).

Despite the WAU and Jala’s tenure which saw MAS return to the black, the lack-lustre financial performance over the past few quarters have given rise to questions about the company’s management’s mantra of running

The share swap could raise the ire of the MAS unions which have been working with limited pay rises under the airlines’ Five Star Value Carrier or Business Transformation Plan 2 but only to see a new shareholder come in to rescue the company again.

Source

Airasia bailing out MAS ??? Is it worth it. The future belongs to the LCCs. this must be the biggest joke of the year.

I just hope AirAsia would not be made a fool. The better option would be to wind-up MAS.

I entered at RM0.295. U oso owning some?

what do you guys think about Air Asia shares in the current context of the economy? Should it be sold?

This post has been edited by mpisthe616: Aug 6 2011, 11:08 PM

AirAsia + MAS soon I guess?

"AirAsia + MAS soon I guess?"

Could you elaborate on this?

become Mas-Asia bar!! hiiii

Got profit what... can sell already.
I did not own any.

Masair

Not bad a name

Coz i'm greedy so no sell yet.

hahaha

will it be like most bail out merger.

airasia down, mas up

I think you are right it will....
I sold my MAS and take profit based on the market condition on Friday ...
Will watch and see the prices on Mondaty before making any decision....

What do you think the effect on stock price? =)

Or both also up up up?
AirAsia up, MAS up more?

Synergy created.. because AirAsia + Mas = Gaining greater market share, monopoly market

AirMAs la

looks like airasia is going to deny the deal.

due to save face,
khazanah now say they are still the largest shareholder even after the deal.

similar to proton-vw deal.
wanna sell but keep control of the management.

me think the shares shall dive somemore tomorrow

Now you see it, now you dun!?