Tune Air holding MAS shares, not AA. So associate status does not apply to AA.

1) He will not be awarded Tan Sri title soon. He is already in fact Tan Sri Tony F. MAS does not own airports. MAHB owns airports. So by AA and MAS having the same major shareholders it will not affect any "airport issues" directly. Indirectly however, Khazanah being a common shareholder of AA, MAS and MAHB might have influence on "airport issues" to the advantage of AA.

2) Government or not. It will be a herculean task for TF to turn around MAS. If he succeeds he is one hell of a magician.

3) AA and MAS competes on different markets. AA has branded itself a low cost carrier while MAS is a premium airliner. Competitions for AA would perhaps be Tiger Airways and JetStar while competition for MAS would be Singapore Airlines and Emirates. To note however, MAS also has Fireflyz which is branded as MAS's low cost carrier franchise. AA and Fireflyz might be condescending but if not wrong only a few routes "cross" paths. For consumers, AA would still offer economical alternatives to travel compared to flying full fledged premium airlines. Sole purpose or business model for AA is to offer economical alternatives to travel by air if its fares are cheaper by a significant premium to MAS or any other premium airlines i think we as consumers are getting our bargains to travel economically. As for MAS, if TF is indeed successful in his herculean task then you and I who travel full fledged carriers will then get our monies worth. We will get better and improved services for the same price we pay today.

If you ask me... win win for all. there might be concerns that AA's gearing is very high. But that is a separate issue altogether and has nothing to do with this share swap (which has nothing to do with AA or MAS since its at shareholder level not company level). Airliners are capex intensive not surprising to have high gearing. but doubts do arise if AA is able to manage its high gearing if the high gearing is manageable and AA is able to improve its earnings i think the business is sustainable.

Anyway I look at it, AAsia is gone case.

The idea looks neat. AA target low-price segment n MAS target full service segment. But the reality is the two segments easily overlap. Hard times would force the premium segment customers to shift into the low price segment. After all, the purpose is only to reach yr destination.
If MAS were to get more customers, Tony would surely have to entice low cost segment customers to patronize MAS and not the other way round.
No man can serve two masters.

This post has been edited by Oracles99: Aug 11 2011, 08:13 PM

Yet 1 man can serve 4 wives.

TP RM4 for the bravehearts.

4 wives of course can lah! They will milk u until u get dry! beware

This post has been edited by Oracles99: Aug 11 2011, 11:03 PM

well any sifus can advise on aa? what price can we buy it at today?

aiyah,where got 4 wives?

For me, i will just stand at the sideline and wait for another week. If the price slides lower, then we will be getting a good company on a discount.

company with high debts, high gearing, high pe
cannot categorise as good company.

high potential maybe la...

high PE? how high?

Guys gimme a sign! How are we doing with AA under current context. Hold?Sell?Buy. Market has been crazy! What are your views buddies?

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Added on August 13, 2011, 4:49 amDuckaton you said AA is a " gone case" what do you mean by that?

This post has been edited by mpisthe616: Aug 13 2011, 04:49 AM

Yes for now....
I think when the 2Q result announced later this month the sliding will be faster.
The fact that the swap need to be done before the 2 Q results of both MAS and Airasia is interesting or
they don't need the help of this good/bad news anyway.
but we have to remember that AA share can be push fro 1.50 to 4.20 in a year and it can be done again if need be.
I think the major players will be happy to see AA slide to say 2.50 for now.

AA re-bound everyone*****to those who look down wont be rise~! pls open u eye and see!!

What drives AA rebound?

Just believe~~~

may be can reach 3.9 a wild guess ...

it used to be at RM 4 before the announcement of share swap...

used to be 3.1X

anyone know the new pE and EPS after share swap and outstandshare ?