Is Air Asia's acclaimed success for real?

The exact year as well as number could not be recalled though a event leading to Air Middle East existence can still be remembered.

Air Middle East was primarily a Hicom association as well as was doing dual airplanes out of Subang as well as after KLIA. Naturally, it is not approaching to be essential yet.

Then came these dual blokes, Tony Fernandez as well as Kamaruddin Meranun from a music industry revelation a world they can turnaround Air Asia. They submitted a paper as well as Government decide to sell a Airlines to them.

The association was sold to them during RM2 as well as a publicity machine was playing out a message Air Middle East had amassed loss of RM40 million. The partial not said was Air Middle East had a stipulate in palm of RM70 million a year.

Maybe they capitalised a waste as well as with a stipulate in hand, they could lay explain that they managed to turnaround in a single or dual year. Anyone not know better would have pant in awe.

Come Pak Lah's premiumship, they allied themselves with a son in law as well as a official spinmeister. They were partial of a swindling to take divided a good routes as MAS was forced to condense routes from 130 to thirty routes.

They were good with gimmicks similar to those reduction than RM10 tickets though operationa! lly, a poor prices come with lots of inconvenience, abuse as well as cunning upon a customers.

The public somehow or rsther than tolerated it. Some felt they were supporting an underdog, not knowing better that they were unequivocally dogs.

They managed to get divided with their anti foe practices simply given tickets areel cheapoand Govevrnment sealed a single eye. Customers do not being done to wait for for during l! east one some-more a single as well as half hour.

The latest encounter with a Australian woke them up to a actuality that a poor numbers they have put upon a peaceful victims of mostly Malaysians will not work in Australia.

The past practise to amass delinquent engineering bills as well as be difficult paymsters upon Malayian Airlines Engineering Department do not work with other Engineering companies.

There have been already airports that would customarily allow Air Middle East for emergency landing though not for normal takeoff as well as landings. With those airports, they can't get divided as though they have been Malaysia Airports Berhad.

And there is some-more as well as some-more abuses of Air Middle East upon a commercial operation that is surfacing that if there is any aspirant upon a domestic routes, even if it foreign airlines as well as during a it aloft price, most have been willing.

Customers have been talking back to Air Asia's abuse as well as cheating.

Basically, Air Middle East got to where they have been through deception as well as trick upon customers, competitor, authorities as well as use provider/s.

Sure they done income as well as grasp phenomenal growth. It is basically a hollow pyramid organisation. It has still that fly-by-night operator mindset.

If they have been not means to lie as well as condyct commercial operation professionally as well as ethically, can they have those claimed achievements? No sireee .... do not be as well sure.

Read this past The Star report:

Thursday March 15, 2012

AirAsia Thai IPO approaching to lift RM500mil

By TEE LIN SAY
linsay@thestar.com.my

PETALING JAYA: The inventory of AirAsia Thai is approaching to lift 5 billion baht (RM500mil) as well as will expected take place in Bangkok by early Jul this year, whilst a handbill will be out in May, said sources close to a deal.

Tentatively, a shares will be labelled during 5 baht (! RM0.50) apiece.

It is learnt that investment bankers doing a understanding have been drifting to Bangkok currently to finalise details of a initial public offering (IPO) exercise. The inventory was ostensible to take place final year, though was behind due to a flooding in Thailand in October.

AirAsia Thai is 51% owned by Middle East Aviation Co as well as 49% owned by AirAsia Bhd.

Two air-hostesses giving traditional Thai greeting. AirAsia Thai, that is 51% owned by Middle East Aviation Co of Thailand, is approaching to be listed by early July. AFP

Middle East Aviation is a purebred Thai association that paid for in to AirAsia Thai in 2006 from Shin Corp (associated with family interests of Thailand's afterwards Prime Minister, Thaksin Shinawatra).

AirAsia Thai, that started operations in January 2004, was primarily a corner try between Shin Corp as well as AirAsia owner Tan Sri Tony Fernandes.

In 2006, when Singapore's Temasek paid for in to Shin Corp, AirAsia Thai's 51% inhabitant ownership order was diluted, thereby requiring an ownership change to ensure compliance. That was when Middle East Aviation came in to buy a stake.

If a inventory practice takes place, it is expected that AirAsia's financial year ended December 31, 2012 (FY12), will begin recognising income contributions from AirAsia Thai, something that analysts have in all nonetheless to factor in.

Consensus estimates between analysts have been for AirAsia to grasp net distinction of RM977mil for FY12, as well as this has not factored in contributions from its associates.

AirAsia Thai has been operationally essential given a second entertain of 2010, based upon a records to a accounts of AirAsia. Ho! wever, A irAsia has not been means to recognise these profits due to amassed waste of these units that have nonetheless to be topsy-turvy to zero.

The share of distinction will customarily be recognized in a income statement of AirAsia when a serve RM30.4mil of unrecognised waste have been reversed.

AirAsia's share of AirAsia Thai's net distinction in a fourth entertain to December 31, 2011 amounted to RM30.2mil, whilst for a full year, a net distinction was RM99.3mil.

AirAsia Thai is still a remarkable association though no it didn't conduct to obey primogenitor association Air Middle East to turnround in a year or two. They had to amass waste from a flourishing pains.

Two incident primogenitor association did not bear miraculously.

Let's speak of it's low price model.

Yes, low price indication comes with low labelled ticket that equates to they have to live upon low margin. It customarily equates to that Air Middle East is a unsure company.

How did they managed to get a attention of investors as well as capacitate their share price to rise?

Most analyst have been interested with Earning per share (EPS) or some-more important EPS growth. EPS will get a Price Earning ration or PE as they would routinely call.

Current PE ration of stocks have been customarily already high. Stock marketplace is fit to build in all a well known information. Stockbroker as well as analyst cannotcari makan.

So they sell investment ideas of buying destiny PE. With certain growth, subsequent year or a year after next, share price can be paid for given destiny PE is low as well as it will eventually climb to stream level.

So can have income they discuss it you as well as I. You buy, they consequence elect as well as brokerage.

Air Middle East cannot sell a idea of low PE given it is in a low domain commercial! operati on as well as relies upon volume. To get investors interest, they have to explain growth.

So distant they have been means to broach growth. Although you concur to acknowledge their growth, you say they have been not flourishing through a healthy equates to though unnatural ways of "deceit as well as treachery."

Stock marketplace punters do not care to all this dignified issues. They buy low as well as sell tall upon their mom to have profit. Cut loss when inauspicious condition happen.

Air Middle East is built upon a same indication or year in year out script fromRyan Air. However, when it stop growing, a trouble will begin. Readhereandhere.

What if expansion stopped upon Air Asia?

The same problem can occur.

Be mindful of a actuality Air Middle East rose not unequivocally out of low cost, efficiency, operational expansion etc. though by taking over MAS routes through deception as well as treachery, low price as well as cashfow management by refusing payment, delay suppliers, engineering bill, airport tax, even sacrificing safety, bad diagnosis of customer, etc.

How is Air Middle East going to pay for their 200 systematic Airbuses?

Dump upon MAS?

That will effect MAS's product, commercial operation plan, as well as a whole array of issues. Had a little numbnuts not exclude to ascent fleet as well as that influenced sales, dumping Airbuses upon MAS will have worse stroke upon revenue.

Tony F does not care really, if Air Asiamampuih. He is customari! ly inter ested in a 2-5% elect to be subsequent for purchase of each planes.

This is upon a single commentators view of Air Asia:

The truth from insiders in Airasia is that it is collapsing. Another 275 aircraft to go in fourteen yrs with total check RM110Billion. Most of a bank have stop giving AA loans knowing their perspective of miss of fortify in payment. You can ask Singapore Engineering Company who use their aircraft before, as well most backlog.

CIMB, Kuwait Fiance as well as European bank will be in trouble in box AA loan turns to NPL. At anytime Moody's, Standard & Poors as well as Morgan Stanley can move down their rating that Nazir do not wish it to be happen. Much of what is happening is about saving Air Asia.

Air Middle East haves subsidiaries as well as associates in most countries in Asia. Maybe it is to get routes as well as lift financing. If each a single goes listing, turn independent operator as well as help flood a airline market, what can happen?

For sure, Air Middle East will be in for a tighter operational margin, squeezed also upon sales, as well as eventually a single or dual will go under.

Parent Air Middle East might have no carry out over these subsdiaries or associates. But they carry a name Air Asia. The bankers will realised as well as a little of a bankers will get jumpy as well as pull a plug upon any of these Air Asias.

Fill your own imagination.

Some of a actuality might not be right, generally upon a agreement between Air Middle East as well as their little ones, though a big design is a same.

Try suppose what Khazanah was meditative to explain something can be schooled for MAS from Air Asia. Yeah right actually, MAS has never schooled to do commercial operation a conniving way. They have been as well professional.

MAS need to learn to cheat?


- Another Brick in a! Wall