This is my view on why AK is on the slide with its share hitting rock bottom.
This is the lowest it has been since the IPO.
Its not just the fuel price
Its how our "malaysian blue eyed boy" MR TF got it badly wrong in his fuel hedging policy
To me firstly AirAsia foundation is not strong.
This is why...
Airasia doesnt have any assets.Both their terminals and training center or academy whatever you call it...its on a piece of land which is leaseD by Malaysia Airport Bhd.
Their A320 doesnt belong to them,they borrowed the money from credit companies around the world by selling their shares to finance the purchase the planes.
and to make things worst the Airasia base value of the share is not RM$1 and its base value is $0.10 so thats why their doesnt have the strength to weather this storm.
And the latest news today was AirAsia owes over RM$5mil to MAB in landing fees and handling charges and this was brought up in the parliment sitting yesterday.
of course i hate to see airasia go down for the sake of their pilots and their staff
But for all his arrogance and the way he treated his staff and pilots I really hope THE **** HITS THE FENCE FOR MR TF..