The whole biz plan is a house of cards, leveraged to the max with an ever growing and unsustainable debt to equity ratio. The entire plan through greed is based on ever increasing pax numbers ie. That famous Tony quote "Growing the market" But, there comes a point of saturation brought by recession unforseen cost increases etc. The interconnectivity of cashflow funding based on predicted seat factor growth measured in ASK / RPPK is not a concrete fundamental. Therefore if the foundation is not secure the house of cards will topple. We are now seeing the end game. Tony has stretched the numbers further than most. Three to five years is usually the breaking point but Tony has shifted debt and secured loans that have reached such levels that his financiers have no choice but to continue pouring money into the blackhole as they see no other way to recover their principal outlay. Must be some really nervous bankers out there. But at the same time we are seeing vast amounts of cash evaporate because of the current economic climate. And as money in reality is not based on a tangible asset but rather is printed upon the sale of debt. The bankers will soon be forced to convert bad loans to something tangible. And unfortunatly I do not see anybody except a GLC in boleh land aquiring this debt. Good old Malaysian tax payer is going to foot the bill for this cowpat. Good one Tony, well done. Honesty and integrity you finest virtues.
