AirAsia set to close deal on purchase of 37 planes

PETALING JAYA: As airlines globally struggle to get financing for future aircraft deliveries, AirAsia Bhd says it is close to finalising a deal worth close to RM3.5bil to fund the purchase of 37 new aircraft over the next two years.

Deputy group chief executive officer Datuk Kamarudin Meranun told StarBiz yesterday the airline had given Barclays Capital and BNP Paribas the mandate for the financing.

“It is an ECA-backed (export credit agencies) financing that would fund the next 37 aircraft for which delivery will begin on Dec 19,’’ he said.

“So far discussions have been held with ECA in Paris and we are now going through the documentation process. We hope to sign the financing agreement before the first delivery,’’ he added.

Asked about the borrowing rates, he said they “are very attractive.’’

AirAsia has ordered 175 aircraft with 50 under option. This year the low-cost carrier will take delivery of four more aircraft, followed by 14 next year and 23 in 2010.

AirAsia had debts of RM4.3bil as at end-June and cash reserves of RM1.1bil. The carrier’s net gearing is 1.9 times and analysts expect its gearing ratio to rise with the additional borrowings for the new deliveries.

The airline, which abolished its fuel surcharges on Tuesday, hopes to rev up revenue by selling more seats.

Market talk is that AirAsia, since abolishing its fuel levy, has raised its administrative fees by RM30 to RM70 one-way. This was denied by AirAsia group CEO Datuk Tony Fernandes.

“No, we have not increased our administration fees. It is still the same,’’ Fernandes said.

URL: http://biz.thestar.com.my/news/story.asp?f...68&sec=business

AirAsia revenue rises on high passenger volume

PETALING JAYA: AirAsia Bhd, which posted its first loss since its listing in 2004 due to foreign exchange translation and hedging losses through Lehman Brothers Commodity Services Inc, reported positive growth in revenue due to higher passenger volume and higher contribution from ancillary income.

URL: http://biz.thestar.com.my/news/story.asp?f...69&sec=business

AirAsia-Jetstar merger brewing

URL: http://biz.thestar.com.my/news/story.asp?f...92&sec=business

Foreign selling pulls down AirAsia stock

URL: http://www.btimes.com.my/Current_News/BTIM...icle/index_html

RM 2.66 as of today closing is not attractive enough to grab some?

AirAsia rebounds after recent losses

URL: http://www.btimes.com.my/Current_News/BTIM...icle/index_html

AirAsia defers aircraft delivery

URL: http://www.btimes.com.my/Current_News/BTIM...icle/index_html

AirAsia cut to 'sell' at Citigroup

AirAsia Bhd, Asia’s biggest budget carrier, fell in Kuala Lumpur trading after the stock was downgraded at Citigroup Inc, which said second-quarter earnings may disappoint due to higher fuel costs.

The stock slid 1.1 per cent to RM3.46 at 12:24 p.m. local time, its first decline in three days.

The company was cut to “sell” from “buy,” analyst Rigan Wong said in a report today. -- Bloomberg

Read more: AirAsia cut to 'sell' at Citigroup http://www.btimes.com.my/Current_News/BTIM...l#ixzz1RPzfdpnH

AirAsia remains a 'buy' at OSK Research

OSK Research Sdn Bhd has maintained its "buy" call on AirAsia Bhd at a fair price of RM3.89 as it views the possible tie-up with All Nippon Airways (ANA) of Japan as positive.

In a research note today, OSK said an announcement of the joint venture (JV)to set up a low-cost carrier, likely to be called AirAsia Japan, was expected sometime next week.

Read more: AirAsia remains a 'buy' at OSK Research http://www.btimes.com.my/Current_News/BTIM...l#ixzz1SAXICljm

Will this affect Airasia share price movement?

MAHB saves RM104m as aerobridges shelved

KUALA LUMPUR: Malaysia Airports Holdings Bhd's (MAHB) decision not to install aerobridges at the new Low Cost Carrier Terminal, or KLIA 2, will save the company up to RM104 million.

Its chairman Tan Sri Aris Othman said on Friday, July 15 the amount was for 80 aerobridges, costing RM1.3 million each.

... On Thursday, MAHB announced that it would not install aerobridges at KLIA 2 in line with AirAsia's requirement and business model. ...

URL: http://www.theedgemalaysia.com/business/18...es-shelved.html

OSK upgrades AirAsia's fair value to RM4.34

OSK Research Sdn Bhd has upgraded its fair value on AirAsia Bhd to RM4.34 from RM3.89 while maintaining its 'buy' call.

In a research note today, OSK said AirAsia's revenue passenger kilometres (RPK) and passenger carriage for first half of financial year 2011 (1HFY11) remained consistently strong, growing by 16 per cent and 23.2 per cent year-to-date.

Read more: OSK upgrades AirAsia's fair value to RM4.34 http://www.btimes.com.my/Current_News/BTIM...l#ixzz1SXngvweB

AirAsia not moving HQ to Jakarta

KUALA LUMPUR: Low cost carrier AirAsia Bhd's headquarters will continue to be located where it is now - the mezzanine floor
of the Low-Cost Carrier Terminal (LCCT) in Sepang, said the company.

"There are absolutely no plans, nor the inclination, to move the
headquarters of this Malaysian-incorporated company out of the country. And our Malaysian-registered fleet of aircraft will continue to operate from the LCCT."

Read more: AirAsia not moving HQ to Jakarta http://www.btimes.com.my/Current_News/BTIM...l#ixzz1T84SlfHF

I'm waiting that to happen but very unlikely. Could be at 1.66-1.68 range.

That is long way to go ...

If AAX-WA drops to 0.045, I'll grab some since the WA is going to expire in 2020.

So, tomorrow there'll be another sell off again?