Cannot be lah... where the hell they are going to get that kind of money to privatize it? The major shareholder is rich but not until that extend...

Air Asia is rather risky stock due to their business model of high leverage, but the cash flow still holding ok, at least until last quarter. They aimed to be those type of high risk, high return type of company, so not to expect any dividend from them in near future.

Global trend at the moment is, government won't let big company fail as that might have deep impact to the economy as a whole, guess our government won't let them fail as customers are generally happy with their existent (as compare to the time we only have MAS to fly us in the country), but from shareholders this company just sucks (they have to as they will not able to service their loan and declare dividend at the same time, they will collapse). Buy small small and wait for couple of years, if it not doing badly you might see significant growth. Let's hope to see their planes fill in the LCCT in future.

Q3'08 should see their operating profit return to black, but I really don't like the way they book tax credit as earning (that might be perfectly all right in Accounting Standard), as the money wasn't earned (as yet). God bless us and Air Asia.

I think their business plan is to develop a comprehensive regional network as soon as possible, by acquiring large quantity of planes on credit.

From the financial statement, we can see the depreciation and non-current asset grow in pace, so do the turnover. The company will remain as going concern as long as they are able to meet the installment of loan with cash flow they receive from us. And they are not seeking a lump sum of debt when they sign the S&P for plane purchase but doing that in stage. I think some of the loan (if not all) are link to LIBOR and current LIBOR fluctuation might stress their earning later on. So far (until Q2'08), the cash flow is still healthy but if they don't grow, they're doomed. Think they are trying to secure a loan for the next batch of planes to be deliver at the moment (maybe news of privatization helps in share price, in turn help to secure better loan package).

If I am not mistaken, they still showing smaller operating profit (but red after foreign exchange loss, I normally ignore that if the money is mean for longer term).

What worrying me more is their loss making foreign subsidiaries (Thai & Indo), the two had not showing convincing result since established (recent saga in Bangkok making their Thai business worse). But look at the bright side, their competitors start to close shop liao (1 2 Go, Adam Air...). Hope they are not the next to get folded

Start from 3O'08 they no longer hedge their oil requirement, that's mixed of blessing for them, as oil price puncture in 3Q (but before puncture, they was seems like going to collapse every minute ).

The information might not be correct and that's just base on my memory, I read their F.S. couple of weeks ago, hopefully my memory not corrupt and this is useful for some of us. Invest on your own risk vested...

Tax credit mainly arise from company expenses & capital allowance (tax based depreciation), but AA's tax credit mainly due to government incentive (on capital allowance, I guess). To me, tax credit is nothing unless you have profit to set it off.

AA result not out yet, foreign currency translation loss too high?

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Added on November 28, 2008, 7:04 pmAA drop us another bomb, big one...
Lost 215m due to Lehman Bros? Com'on, you must be joking... but that's true.
Another 213m to translation? That one fairly expected
1Q lose 465m and want to privatize the company look like a joke to me
Think major shareholders no need to privatize the company, they can go to the market and buy next Monday, with much cheaper price.
Only thing lucky is I so happen to hold a very small share
Good luck to all vested.

This post has been edited by htt: Nov 28 2008, 07:17 PM

Now still healthy, but if they drop a few more lemon bombs on us, then hard to say loh

This post has been edited by htt: Dec 2 2008, 04:48 PM

I think they only hold 10% of AAX, plus some royalty if not mistaken.

Another piece of bad news. Don't know when can the country return to normal.

Thailand's Constitutional Court has ordered Prime Minister Somchai Wongsawat's ruling People Power Party to disband after finding it guilty of vote fraud.

AirAsia Berhad ("AirAsia") wishes to announce for public information that as at 28 November 2008, 37.86% of the issued and paid-up share capital of AirAsia of 2,374,209,580 ordinary shares of RM0.10 each were held by foreigners (the foreign shareholding as at 28 May, 2008 was 47.87%).

FF withdrawing. But at least BKK airport functioning again.

This post has been edited by htt: Dec 3 2008, 06:35 PM

Don't think got a lot of impact, because AA concentrate in shorter route and MAS & Qantas & BA alliance might affect route to Europe/ Australia only.

No bad news is good news

AA & Jetstar merge?

But seriously don't feel like going to Labu and catch a flight...

Yes, that's true. There are another camp of people believing in invest back whatever profit you have to grow the company till max, so they don't recommend dividend.

I think they use labu as counterweight to force MAHB to reduce their fee etc, because MAHB charge them like charge MAS, while the facilities... arh... like getting ubi with durian price... Tactically Labu is a no no...

Got meh?

Par value /= market value

?

Can, recognized loss one shot only mah.

That's rule of the game mah, Air Asia also just pay and concede loss only mah.

Under KLSE website there is an IPO page. I think someone might post the IPO here also, if there is one for Air Asia X.