tag:blogger.com,1999:blog-6833372664905554734.post286103622783732970..comments2024-03-23T03:41:27.086+08:00Comments on Corporate Governance in Malaysia: Fight between Cyrus Mistry and Tata: AirAsia and Singapore Airlines are mentioned (4) M.A. Windhttp://www.blogger.com/profile/16833927103193297126noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6833372664905554734.post-78532217743497832742016-11-04T14:04:13.255+08:002016-11-04T14:04:13.255+08:00Anonymous has made interesting observations.
Thi...Anonymous has made interesting observations. <br /><br />This has been ignored by highly paid analysts.ronniehttps://www.blogger.com/profile/02874940085203831073noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-46008089647681524752016-11-03T20:22:51.608+08:002016-11-03T20:22:51.608+08:00Thanks for your comments. It is indeed all about A...Thanks for your comments. It is indeed all about Asia Aviation Capital Ltd, a Malaysian company 100% owned by AirAsia, with a very short history (I think started Sep 2014) and aparently very profitable. But the profit comes from the other subsidaries (I think there is only one non-AirAsia customer, a Pakistani airline). Needless to say, there is no free lunch, if this AAC is making huge profits, then the subsidiaries are paying for that. As CLSA highlighted, may be no problem with the current low oil prices, but what if they rise, can they still pay? AirAsia has many other RPTs going on a daily basis (training, services, travel agency, insurance, etc), they need many pages to describe them. But this is probably one of the bigger ones, if not the biggest.<br />M.A. Windhttps://www.blogger.com/profile/16833927103193297126noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-77462524364207599152016-11-03T20:12:58.481+08:002016-11-03T20:12:58.481+08:00Yes, do look into the numbers.
The other CLSA com...Yes, do look into the numbers.<br /><br />The other CLSA comment which you had highlighted caught my attention also : "...drastic increase in receivables that have no certainty being collected."<br /><br />ending 30.9.2015 Amounts due from associates = 191.481 million.<br />ending 31.12.2015 Amounts due from associates = 360.854 million.<br />ending 31.3.2016 Amounts due from associates = 559.389 million<br />ending 30.6.2016 Amounts due from associates = 647.698 million.<br /><br />CLSA is absolutely spot on.<br /><br />The numbers is simply spiraling out of control.<br /><br />To come to think of it, I wonder how many other company does a sale and leaseback of asset with its own subsidiary?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-76373662910045546032016-11-03T10:07:56.700+08:002016-11-03T10:07:56.700+08:00Thanks, interesting comments, will try to look int...Thanks, interesting comments, will try to look into the numbersM.A. Windhttps://www.blogger.com/profile/16833927103193297126noreply@blogger.comtag:blogger.com,1999:blog-6833372664905554734.post-74063181171259013232016-11-03T10:02:30.979+08:002016-11-03T10:02:30.979+08:00The biggest concern for any AirAsia shareholders s...The biggest concern for any AirAsia shareholders should be the lease income issue....<br /><br />From the latest quarterlies:<br /><br />AirAsia recorded a revenue of 1623.6 million.<br />From page 12, we know the lease income revenue is 328.5 million.<br /><br />That's 20% right there.<br /><br />Well AirAsia DID NOT state aircraft lease PROFIT ( I STRONGLY feel it should since lease revenue is now 20% of its total revenue for the quarter). <br /><br />With aircraft leasing expense stated as 121.960 million, I would assume leasing profit for the quarter should be 206.54 million !!!<br /><br />With operating profit at 414.616 million, this means leasing profit contributed 49.8% of its operating profit for the quarter!!!!<br /><br />Just what did CLSA say about AirAsia leasing income?<br /><br />Old planes leased out at HIGH PRICES?<br /><br />So how does one even value such a company (the leasing unit) where the company buys older planes from it's parent company (AirAsia) , which then has the special privilege of leasing out these older planes at rather high prices to the parent's subsidiary company (AirAsia India)?<br /><br />Left hand to right hand to other hand?<br /><br />How much is Tony trying to pawn off AirAsia's leasing unit?<br /><br />The other current concern is Tony's delay/reluctance in picking up his extremely profitable placement shares.<br /><br />Why?<br /><br />A. Tony no money? <br />B. Tony understands the extreme weakness in AirAsia's core fundamental?<br />C. Tony doesn't like the current 'paper' profit?<br /><br />What is disgusting is A. <br /><br />If Tony has no money to pick up these placement shares, how could he be allowed to make/accept that placement offer in the first place?<br /><br />Didn't Tony make a rather similar stunt where he claimed he wanted to take AirAsia private?Anonymousnoreply@blogger.com