Well,it is not a nice year for the whole aircraft industry.The oil price is fluctuating and A(H1N1) is reversing the tourism and air industry too.However,I believe that would not badly affect AirAsia.Why?


Firstly,AirAsia is buying the oil at a current price(if I recall correctly).It adopts this method from the beginning of the year.I believe the company opted this method because they had foreseen the instability of the oil market within the short-mid term.That also indicates that the company could afford the fluctuation within a proper range as this should be the basic work for an experienced airline.Thus,the risk supposes to be controllable.


Secondly,A(H1N1) is a pandemic disease that no one could forecast it.It causes the recession of both tourism and air industry.The most important reason that AirAsia could win the nice market share is the ability to control the cost.Apparently,it's also the major weakness of other carriers such as MAS.AirAsia still could expand their lines quickly as they make the business more efficiently.MAS,for example,will have to cut more less-profit lines in order to get a good balance.Thus,in a long run,the company which could get a biggest piece of cake will definitely gain the top position.


So I think if AirAsia is able to maintain the debt in a reasonable margin at this tough time,it will be more bright than now.


Remember,AirAsia is still young and vital!


This post has been edited by liciece: Jun 15 2009, 04:32 PM

Never mind...just keep it for some while..maybe it will surprise you...

AirAsia just announced at late yesterday that EGM will be held on Sep. 10,2009 for the 20% placement.

This post has been edited by liciece: Aug 19 2009, 04:58 PM

Placement has two ways to go:
1.meaning for issuing new share directly
2.meaning for selling some amount of current shares to third party and then issuing new shares

Normally companies like to use the second method because it could be more flexiable.