Wednesday, August 10, 2011


Tan Sri Azman Mokhtar: Have you read the AirAsia’s financial statements?

I would like to share this comments which I have received from a reader, Warrior 123. I am surprised that mainstream newspapers like Star and others, have resorted to quoting sources, has painted a very rosy picture of this AirAsia/MAS share swap without any analysis on the income statements of AirAsia. Please read this well thought out piece below. Judge for yourself.  I hope that Tan Datuk Sri Azman Mokhtar, head of Khazanah Nasional Bhd, and the bankers can convince us otherwise with their own analysis based on the AirAsia financial statements.   

1.As of the 1st Quarter of 2011, Air Asia (AA) debts amounted to 7.7 billion with cash balances amounting to 1.7billion.

2. In August 2010. AA announced a deferment of their proposed aircraft purchases but sometime in June 2011 they reversed their decision and proceeded to place an order for an additional 200 new aircrafts at the Paris Air Show.

3. As of 31 March 2011, based on data from their 1st Quarter report, AA’s capital commitments stood at RM 19 billion. With the above announcement, an additional RM 54 billion will be added as Capital Commitments as implied in this article:

the proposed CC of roughly 75 billion will be spread over a 15 year period ending 2026. In other words,AA has to ratchet up its earnings to an average of 5 billion per annum to meet its future dues. From 2006 to 2010. AA’s revenue grew by 10 fold from 110 million to roughly 1.1billion, an average growth of RM 200 million per annum.

4. Its cash trove rose 6 fold from approximately 300 million to 1.7 billion but its debts skyrocketed from 1.05 billion in 2006 to 7.7 billion in 2010, an increase of 700%. One gets the ghastly feeling that this is a debt burden that is spiralling out of control.

The schedule for the aircraft delivery is as follows with the Neo being received from 2016 onwards:

2012 = 14
2013 = 13
2014 = 18
2015 = 19
2016 = 19 (4 Neo)
2017 = 14
2018 = 18
2019 = 19
2020 = 20
2021 = 21
2022 = 23
2023 = 24
2024 = 24
2025 = 24
2026 = 9

To compound the issue, the world economy including Asia’s will be into another maelstrom and air travel will invariably be hit:

and we probably will have a white elephant in NS soon give or take three years and another one of my dire predictions I made in when commenting on AA in 2009 materialises.

Of course AA can cancel orders but contract penalties will be onerous. In any case, TF is betting on the assumption that being a big borrower will shield him from foreclosure as banks will be leery of bearing heavy losses! bUt then a sizeable chunk of those loans are being held by Malaysian banks and in the worst case scenario, the government and the taxpayer will have to pick the tab to avert a financial meltdown cascading down the AA slope.
Warrior 231


ANACONDA said...




Anonymous said...

yg penting jangan sampai susahkan rakyat biasa mcm aku ni dah la...

Anonymous said...

Kalau LCCT punya la ramai mcm semut, pun masih rugi aku tak tau nak kata apa la.

Si MP katak ni reti ke bab2 bisnes ni?

Beli kapal terbang bukan mcm beli motor, dalam setahun dua setel loan.

Memang debt berbilion, tapi kapal terbang tu brand new. Boleh guna berbelas2 tahun. Bisnes besaq2 bukan orang guna duit cash sendiri, orang guna bank loan.

Anonymous said...

Gua apa peduli .

hidup mau duit ma, mau kaya..
janji mesti
masyukkkkkkkkkkkkkkkkkkkkkkkkkkk.. kkk!

Melayu Perak said...


Anonymous said...

Padan muka! Kepada pejuang pejuang Melayu, tengok apa jadi dengan MAS. Contoh sebuah organisasi yang operasinya dikendalikan oleh Bumiputra dari dulu. Kena jual dan mintak pertolongan KAFIR untuk selamatkan dari bankrap jugak! HAhahahahahaha. Otak udang!

Anonymous said...

Melayu&Islam.Melayu macam dia ni Melayu pada nama je.Islam pun cuma pada nama gak.Dan kalau dia betul-betul Islam,dia takkan menyusahkan saudara seagamanya.Pas,Umno dan lain-lain sebenarnya bersaudara tapi putus disebabkan salah-menyalah sesama diri kita sendiri.

Ingatlah puncanya dari bawah.Kalau rakyat zalim,Allah akan pilih yang paling zalim diantara mereka untuk jadi pemimpin mereka.

Anonymous said...

Kalau rakyat kuat menipu,penipu yang paling agung dan tersohor diangkat oleh Allah untuk menjadi pemimpin mereka.

Anonymous said...

Maka dimanakah pemimpin yang mulia akhlaknya berada dan siapakah dia?

Mereka adalah sesiapa saja dari kalangan kita,diantaranya tak lain tak bukan keturunan kita sendiri.

Kalau makbapak cari rezeki dengan cara haram seperti menipu,contohnya seperti penoreh getah yang memasukkan kulit kayu getah kedalam getah,maka anak-anak yang membesar dengan rezeki haramjadah nilah akan menjadi pemimpin yang zalim itu.

Anonymous said...

Sedangkan anak-anak yang deberikan rezeki halal,seperti penoreh getah yang membiarkan susu getahnya membeku secara alami atau menggunakan serbuk pembeku getah..(bila nak diharamjadahkan cuka getah yang menjadi alat penzalim tu?)tidak mencampurkan kulit kayu kedalam getahnya,anak-anak ini akan menjadi pemimpin yang adil yang kita cari-cari itu.

Dimanakah dan siapakah mereka?

Anonymous said...

Yang pasti sesiapapun ada potensi tak kira dari golongan apa,dari parti mana..akupun tak tahuuuu...uuuuuuu.

Jangan tanya manusia yang buta,solah istikhorah atau minta terus daripada Allah yang amat memahami isihati.Jangan sangka kita dapat petunjuk melainkan kita mendapat petunjuk yang sama seperti yang diberikan Allah kepada umat Nabi SAW 1400 tahun lalu iaitu para Sahabat R.A.Mintalah kerana Allah tidak bakhil seperti manusia.

Anonymous said...

Idris Jala bekas CEO MAS. MAS pun dia gagal, sekarang dia nak jadi PEMANDU ekonomi Negara? Siapa pulak yang lantik dia? Takkan korang bodoh sangat sampai tak nampak yang duit duit hanya untuk mereka di atas dan kroni kroni mereka? Hahahah buka MINDA!

Melayu Perak said...

tan sri azman mokhtar nih lulusan wkonomi daripada university cambridge....

tentulah dia dah congak nak ambil AA pegang saham MAS.....

dia nih bukan calang-calang orang....

Melayu Perak said...

By Agence France-Presse, Updated: 8/10/2011
Malaysian airline tie-up hailed as a win-win
The surprise alliance between loss-making flag carrier Malaysia Airlines and no-frills AirAsia will turn a costly rivalry into a partnership likely to boost their revenues, analysts said Wednesday.

0You recommend thisYou don't recommend thisShared 7 times
Industry experts hailed the strategic tie-up as clearing the way for each side to focus on and grow their core markets -- Malaysia Airlines as a premium long-haul carrier and AirAsia as an aggressively low-cost budget option.

The refocusing of the two Malaysian rivals is expected to better enable them to meet tough competition from the likes of regional giants such as Singapore Airlines and Thai Airways.

"Their partnership will result in the consolidation of the domestic aviation industry," Shukor Yusof, an aviation analyst with Standard & Poor's Equities Research, told AFP.

"More importantly for ailing Malaysia Airlines... it will help boost their revenue, with AirAsia providing the expertise," he added.

At the heart of the deal is AirAsia's colourful CEO Tony Fernandes.

The former music industry executive quickly steered the once loss-making budget carrier into the black after acquiring it a decade ago, and the government clearly hopes he can do the same for Malaysia Airlines.

The tie-up announced Tuesday involves a share swap and a new management team for state-linked MAS that brings Fernandes into the boardroom of his erstwhile foe.

"The concrete efforts to revive MAS, and a revitalised board member and management team will provide fresh impetus to MAS's turnaround," securities firm AmResearch said in a research note on the deal.

Fast-growing AirAsia now already flies to 78 destinations, while its long-haul budget arm AirAsia X -- launched in 2007 -- covers another 11.

Meanwhile, state-controlled Malaysia Airlines, launched 64 years ago, has more than 110 airports on its route map.

Currently, they compete head-to-head on a number of key routes, hitting their bottom lines.

But the deal is seen leading to a mutually profitable route rationalisation and other cost savings such as shared aircraft maintenance and joint purchases of planes.

"This is especially related to the optimisation of routes and in the sense of avoiding cannibalisation" -- in which carriers hurt each other by competing for the same routes -- Malaysian firm TA Research said in an analysis of the deal.

It added AirAsia could see quick gains if Fernandes succeeds in reining in competition from MAS's domestic budget carrier Firefly, while MAS will benefit from the infusion of "new blood".

The deal will give AirAsia an extra edge in the region's fast growing budget air-travel sector, which has seen a number of new airlines set up as firms try to make the most of Asia's rising middle class.

As AirAsia has steadily expanded, MAS has struggled. In recent years it has been forced to sell off its headquarters, slash unprofitable routes and fire thousands of staff to avoid bankruptcy.

Hurt by rising fuel costs, in May it posted a first-quarter net loss of 242.3 million ringgit ($79.9 million) compared with a profit a year earlier.

However, Shukor said it remained to be seen whether the pair will gel.

A key point is whether Fernandes is given free enough rein to "weave his magic" for MAS, he said, noting the flag carrier has a 19,000-strong workforce that will be politically difficult to trim.

"All in all, it looks reasonable. But I won't say it is workable because the devil is in the details," he said.

The deal also has raised anti-trust concerns -- it is subject to a monopoly review -- and may not necessarily lead to lower prices for travellers.

"It will be logical for the new alliance to control prices. Airfares probably will not be reduced," Shukor said.

Anonymous said...


Melayu Perak said...

bagi bukti AA in bad shape...kalau company tu banyak berhutang tapi boleh bayar balik hutang...

tak semetinya dalam bad shape...tengok Profit and Loss AA untuk tempoh kewangan 2010 untung ke rugi...???

Anonymous said...

jangan terkejut saudara orang Melayu dah tak sensitif dengan agamanya lagi. Musuh negara yang perlu ditiadakan dalam politik Malaysia ialah Anwar ibarahim, Hishamudin Tun Hussaiinnn. Yang lain jangan tunggu nak play save kerana untung politik tapi hilang keredaan Allah. Najib oii aku tunggu statement hang. Mahyudin mana dia senyap aje. Ikut pejuang tulen Zul Nordin dan Hassan Ali...