AK woes?
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AK woes?
Report from somewhere :
Last Friday, Air Asia announced a loss of 465.5 million ringgit (US$128 mil) which the airline spokesman said was due to 'unwinding of fuel hedging contracts' and foreign currency exchange losses.
Malaysian Islamic Capital Markets advisor, ASEAMBANKERS, stated, "Operationally, the outlook is grim for AirAsia. It is facing intensifying competition from Malaysia Airlines and both are competing for a shrinking market as demand slows."
Last Friday, Air Asia announced a loss of 465.5 million ringgit (US$128 mil) which the airline spokesman said was due to 'unwinding of fuel hedging contracts' and foreign currency exchange losses.
Malaysian Islamic Capital Markets advisor, ASEAMBANKERS, stated, "Operationally, the outlook is grim for AirAsia. It is facing intensifying competition from Malaysia Airlines and both are competing for a shrinking market as demand slows."
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Got this from a friend who got it from 'his' friend.
Source, apparently a ******** from a certain ganesh sahahevan.
Is AirAsia in breach of any of its loan covenants?
AirAsia's financial results for the quarter ended 30 September 2008 included disclosure that net cash flow from operating activities was -RM 202,198,000.
According to Tony Fernandes AirAsia has been cashflow positive from the day he took control.
AirAsia reported a loss after tax of RM466 million, but this did not include, as it should have, losses from its associates that ought to have been equity accounted. For the quarter ended 30 September 2008, AirAsia's share of losses from its 2 associates, Thai AirAsia and Indonesia AirAsia totalled RM 165.3 million.
Therefore AirAsia's pre-tax loss should have read RM 669.62800 million NOT RM 504.328 million.
The deferred tax asset has grown from RM 479.705 million to RM 627.971 million. This item has been booked as a current asset. Only in some fantasy can this item be regarded as an asset that can be liquidated quickly to meet current debt and obligations. It is worth noting that this item comprises 9.06% of current assets.
If that "asset" , realisable only if the Company makes future profits, and even then only available as a deduction against tax expense, is excluded from Current Assets, AirAsia's would be in a negative current asset position, suffering a deficit of RM 272,835,000.
If not for borrowings of RM 2,682,141,000, AirAsia would have shown a fall, and possibly , a deficit in its cash position.
Given all of the above, and in particular the deficit in operating cash flow, it is hard to see that AirAsia's bankers would not be concerned. Indeed it is hard to see that they would have advanced AirAsia any money without covenants requiring that its operations be cash flow positive.
End of quote.
Regards
E.B.
Source, apparently a ******** from a certain ganesh sahahevan.
Is AirAsia in breach of any of its loan covenants?
AirAsia's financial results for the quarter ended 30 September 2008 included disclosure that net cash flow from operating activities was -RM 202,198,000.
According to Tony Fernandes AirAsia has been cashflow positive from the day he took control.
AirAsia reported a loss after tax of RM466 million, but this did not include, as it should have, losses from its associates that ought to have been equity accounted. For the quarter ended 30 September 2008, AirAsia's share of losses from its 2 associates, Thai AirAsia and Indonesia AirAsia totalled RM 165.3 million.
Therefore AirAsia's pre-tax loss should have read RM 669.62800 million NOT RM 504.328 million.
The deferred tax asset has grown from RM 479.705 million to RM 627.971 million. This item has been booked as a current asset. Only in some fantasy can this item be regarded as an asset that can be liquidated quickly to meet current debt and obligations. It is worth noting that this item comprises 9.06% of current assets.
If that "asset" , realisable only if the Company makes future profits, and even then only available as a deduction against tax expense, is excluded from Current Assets, AirAsia's would be in a negative current asset position, suffering a deficit of RM 272,835,000.
If not for borrowings of RM 2,682,141,000, AirAsia would have shown a fall, and possibly , a deficit in its cash position.
Given all of the above, and in particular the deficit in operating cash flow, it is hard to see that AirAsia's bankers would not be concerned. Indeed it is hard to see that they would have advanced AirAsia any money without covenants requiring that its operations be cash flow positive.
End of quote.
Regards
E.B.
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" So negative about AK " ???
As long as some " orang besar " from Pekan gets to be top dog, AK will be chugging along fine. See this :
AirAsia to raise adex by up to 20% next year
SERI KEMBANGAN: AirAsia Bhd will continue to increase its advertising expenditure (adex) by 15% to 20% next year, said chief executive officer Datuk Seri Tony Fernandes.
“We generally find that sales will increase by the same percentage or more,” he told reporters yesterday after receiving the Malaysian Brand Icon Award 2008 from Deputy Prime Minister Datuk Seri Najib Tun Razak at the Global Brand Forum.
“Now is not the time to cut advertising because we need to stay ahead of the competition. People will still fly and some may be converted to use AirAsia because of the financial crisis. You are smart if you take AirAsia so that you have more money in your wallet when you arrive at your destination.”
On the company’s recent promotional campaign to fly to London, he said the airline had sold 25,000 tickets in the first three days and 44% of the purchasers were Britons.
Datuk Seri Tony Fernandes (right) receiving the award from Datuk Seri Najib Tun Razak. With them is Global Brand Forum founding chairman Karthik Siva.
“We believe we can fly five times to London, like a commuter service. When I increase my frequency, my cost goes down because I have more seats,” he said.
On his next goal, he said AirAsia would be raising the bar by enhancing its service level further next year.
“Just watch. In 2009, we will be as good as Singapore Airlines (SIA). I’m not changing my business model but will supplement our model. We will compete with the full service carrier.
“From day one, we have been global and when it comes to global branding, there are some steps to take. Partner with the big global brands, be accessible to the media. Be innovative, believe in people and in yourself.”
Meanwhile, another speaker, former Procter & Gamble chief marketing officer Jim Stengel said marketers should replace the 4P’s of marketing – product, packaging, price and promotion – with the 5M’s.
The 5M’s are:
Make your brand ideals your foundation;
Master the power of inclusive marketing;
Manage people, not objectives;
Mission drives margins; and
Measure what matters.
As long as some " orang besar " from Pekan gets to be top dog, AK will be chugging along fine. See this :
AirAsia to raise adex by up to 20% next year
SERI KEMBANGAN: AirAsia Bhd will continue to increase its advertising expenditure (adex) by 15% to 20% next year, said chief executive officer Datuk Seri Tony Fernandes.
“We generally find that sales will increase by the same percentage or more,” he told reporters yesterday after receiving the Malaysian Brand Icon Award 2008 from Deputy Prime Minister Datuk Seri Najib Tun Razak at the Global Brand Forum.
“Now is not the time to cut advertising because we need to stay ahead of the competition. People will still fly and some may be converted to use AirAsia because of the financial crisis. You are smart if you take AirAsia so that you have more money in your wallet when you arrive at your destination.”
On the company’s recent promotional campaign to fly to London, he said the airline had sold 25,000 tickets in the first three days and 44% of the purchasers were Britons.
Datuk Seri Tony Fernandes (right) receiving the award from Datuk Seri Najib Tun Razak. With them is Global Brand Forum founding chairman Karthik Siva. “We believe we can fly five times to London, like a commuter service. When I increase my frequency, my cost goes down because I have more seats,” he said.
On his next goal, he said AirAsia would be raising the bar by enhancing its service level further next year.
“Just watch. In 2009, we will be as good as Singapore Airlines (SIA). I’m not changing my business model but will supplement our model. We will compete with the full service carrier.
“From day one, we have been global and when it comes to global branding, there are some steps to take. Partner with the big global brands, be accessible to the media. Be innovative, believe in people and in yourself.”
Meanwhile, another speaker, former Procter & Gamble chief marketing officer Jim Stengel said marketers should replace the 4P’s of marketing – product, packaging, price and promotion – with the 5M’s.
The 5M’s are:
Make your brand ideals your foundation;
Master the power of inclusive marketing;
Manage people, not objectives;
Mission drives margins; and
Measure what matters.
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to : Mat's, i've been wondering why you all are so worried about AK, you the one that say, that this company are so low..no profit..no this..no that..so no need to worry right??? at least the company feed hundred or thousand of people in malaysia..now they even give 3 months bonus in this such difficult situation..it;s not coming from your money right?...so just relax..
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EPF money?
Yes!`RM$5 billion of rakyat's money going to bailout Valuecap.
This country is doom! The future leader is really an idiot, taking rakyat's EPF money to invest in a mismanaged and ridden with $5 billion debts company.
Someone owes "Ah Long" $5000 and u give him $5000. The $5000 will definitely be used to pay off the "Ah Long".
U expect to get returns from the $5000?
He `already used the money to pay off debts, hence got no $$$ to invest!!!
How to get returns?
Did u vote for UMN*? Get a gun and shoot at your foot now!
Yes!`RM$5 billion of rakyat's money going to bailout Valuecap.
This country is doom! The future leader is really an idiot, taking rakyat's EPF money to invest in a mismanaged and ridden with $5 billion debts company.
Someone owes "Ah Long" $5000 and u give him $5000. The $5000 will definitely be used to pay off the "Ah Long".
U expect to get returns from the $5000?
He `already used the money to pay off debts, hence got no $$$ to invest!!!
How to get returns?
Did u vote for UMN*? Get a gun and shoot at your foot now!
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Wake Up
Time to open your eyes guys...the FAT BANGLA is going mad...wants to build an airport in NSembilan
...now in talks with Jet Star ?
AA is leaking money and he is trying to find ways to get the share up.i hear that some guys are coming back from qatar to take up the DFO posn...being paid alot of ringgit..should be interesting times at AA next year when the new(old guy) takes over and puts his men frm qatar in mgt posn.
the guys who have stayed on like loyal idots will get F...KED again.
MERRY X'MAS and SAFE FLYING !
...now in talks with Jet Star ?AA is leaking money and he is trying to find ways to get the share up.i hear that some guys are coming back from qatar to take up the DFO posn...being paid alot of ringgit..should be interesting times at AA next year when the new(old guy) takes over and puts his men frm qatar in mgt posn.
the guys who have stayed on like loyal idots will get F...KED again.
MERRY X'MAS and SAFE FLYING !
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Hi,
So the new/old guy is coming back. Does it bother you? Feeling threatened? Maybe you not an AK guy, so why worry? Changes are common in this world. Loyalty? If you are not capable or can't do the job properly, no choice/limited choice but to get somebody else. Loyalty is good, but doesn't mean 100% you get to be management. Cheers!
So the new/old guy is coming back. Does it bother you? Feeling threatened? Maybe you not an AK guy, so why worry? Changes are common in this world. Loyalty? If you are not capable or can't do the job properly, no choice/limited choice but to get somebody else. Loyalty is good, but doesn't mean 100% you get to be management. Cheers!
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Feeling threatened?
Loyalty? If you are not capable or can't do the job properly, no choice/limited choice but to get somebody else.
Ahamdulilah syukur nikmat.....
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New A320s still flying "maintenance free"
It will become more interesting once those smooth sailing, factory fresh A320s become due for C-checks. Tony will have to fork over some serious cash, it's called: Maintenance expenses.
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Alhamdulilah syukur nikmat...... Malaysia maju... Rakyat selamat....Selamat Negera Ku..................Please save us from all these thieves and robbers who seek to hoodwink everybody.
If the March 16 transition comes true, the fat bangla is gonna ride high.........our EPF ringgit will definitely be used to shore him up
If the March 16 transition comes true, the fat bangla is gonna ride high.........our EPF ringgit will definitely be used to shore him up
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Me thinks Tongkang meant that the orangkaya indraputra pahang will become PM after mid March and help his fat bangla carpet man magically wipe out all debts to MAB, etc. This will mean using duit from KWSP lah.
Aiyoyo, scary lah macha!
Aiyoyo, scary lah macha!
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Read somewhere that AK boss's fuel hedging strategy tank and cost them big time. Other airlines are caught as well but not with the percentage loss suffered by AK.
Looks like small fart who likes to act big and just went into fuel hedging without a clear idea how to go about it.
MAS hedged only part of their fuel costs and was not overly disadvantaged when fuel prices went south. Tony Fernandez has very very much to learn before embarking on fat dreams to join the big league.
Looks like small fart who likes to act big and just went into fuel hedging without a clear idea how to go about it.
MAS hedged only part of their fuel costs and was not overly disadvantaged when fuel prices went south. Tony Fernandez has very very much to learn before embarking on fat dreams to join the big league.
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ak woes
we the rakyat will have to bear the cost for all the FAT BANGLA'S ideas.having 3 airports so close will be fun...KLIA is already a GHOST TOWN. the G'ment keep saying that they want KLIA to be better then SIN or BKK...it will never happen if they allow the aport to be built.
FATTY must be carrying some big guns BALLS. all the money spent on the LCCT...paid for by the people will be wasted.rm180 million was too much for the lcct.
staff bonus has not been given yet...was to be at x'mas...once again some bull**** from the fatty. the 3% annual pay rise has been stopped...FATTY again. now to go from 2 bars to 3 bars the guys must sit for an exam...all just to stop the f/o's from getting higher pay.
not sure but i hear that the new DFO wants all the T.R.I's to resign..he thinks that they are all not good enough...like he is the best...NOT
it will be fun to see what happens in the next few months.
FATTY must be carrying some big guns BALLS. all the money spent on the LCCT...paid for by the people will be wasted.rm180 million was too much for the lcct.
staff bonus has not been given yet...was to be at x'mas...once again some bull**** from the fatty. the 3% annual pay rise has been stopped...FATTY again. now to go from 2 bars to 3 bars the guys must sit for an exam...all just to stop the f/o's from getting higher pay.
not sure but i hear that the new DFO wants all the T.R.I's to resign..he thinks that they are all not good enough...like he is the best...NOT
it will be fun to see what happens in the next few months.