AirAsia earnings momentum had slowed significantly given competitive pressure, constraints to expand and a weaker ringgit.

The strength of the US dollar; year-to-date average at RM3.3 to US$1 versus FY13 forecast average of 3.15. Every 10 sen weakening in the ringgit: US dollar impacts bottomline by 7%.

Yes folks, a percent (%) appreciation of USD vis a vis ringgit will reduce AA earnings by approximately 8% to 13.7% for FY2014.

The impact of a weakening AUD against USD is also a bad news to AA. How?

Hahahahahahahahahah!!

AirAsia is moving away from its conventional focus on route expansion and toward cost-cutting measures as Southeast Asia's largest budget airline faces growing competition in the region.

Worst still, selling 6 existing aircraft while deffering some! How Now? Will the buying continue? Careful now, folks! Heheheheheheheheh!!

The key challenges for the increase in operating expenses for any airlines will be a rise in fuel costs plus to the weakening of the ringgit, rupiah, peso or rupee against the US dollar!

Careful now, folks! Hohohohohhohohoho!!

Folks, Asian stocks are bracing for China’s Lehman Brothers moment when $634 billion yuan (USD103 billion) in property trusts must be repaid.

Not only is that a 50% jump in the number of maturing trusts, but falling property values are cutting the ability of local governments to raise money to put back into the economy.

So will the rally for AA continue in the coming days? Hahahahahahahahah!!

As if war between Russia and Ukraine wasn’t bad enough, emerging market stocks are still dealing with two other major problems: China’s unfolding credit crisis and Latin America’s currency and political turmoil.

Rather than being tricked into buying emerging market stocks because of relatively inexpensive valuations, price action remains bearish and tells us that it’s still too early to dive in head first.

Careful folks! Heheheehehehehe!

Folks, AirAsia may have to again defer or even abandon its ambitions for a larger slice of the Indonesian domestic market.

With IAA preparing for initial public offering (IPO) the carrier cannot afford to retain unprofitable routes for the sake of domestic market share.

With an IPO in its sights, IAA also cannot afford to continue rapid fleet growth in the current environment.

The IAA IPO was originally slated for 2013 but had been delayed and is not likely to be pursued until there is an improvement in market conditions.

AirAsia will be keen to relook at domestic expansion in Indonesia once market conditions improve but the reality is it will never be able to have the scale of domestic market leaders Lion and Garuda/Citilink.

How? Double digit growth for AA in Indonesia? Hahahahahahahahahah!!

Folks, Makassar-Jakarta has been the only route cut so far in 2014, several domestic routes will likely be suspended or reduced soon.

Indonesia is the world’s fifth largest domestic market and AirAsia’s failure to secure a meaningful share is a serious weakness in the group’s.

IAA currently has a 4% to 5% share of Indonesia’s domestic market. The carrier now risks seeing its share slip back closer to 3%, which is what it achieved in 2012. How folks? Hahahahahahahah!!

2014 will mark another setback in the AA group’s long-term strategy of securing a larger presence in Southeast Asia’s largest domestic market.

The rupiah devalued by 26% in 2013, with most of the devaluation occurring in August and September.

As a majority of airline costs are fixed in USD, the sudden reduction had a huge impact on profitability for all Indonesian carriers, particularly in the domestic market, where all revenues are collected in IDR and it is difficult to implement fare increases.

Would AA Malaysia be any different with weak ringgit? Hahahahahahahahaha!! How?

Folks AA Indonesia has decided to significantly slow down expansion in 2014 as market conditions in the

The carrier, which added eight A320s in 2013, had dropped plans to add two aircraft in 1H2014 and is also considering deferring some or all of the four deliveries initially slated for 2H2014.

So what the status on AAI IPO? The power of silence from AA on the AAI IPO status. How?

Where to put your money if war erupts in Ukraine?. AA? Hahahahahahahah!!

As all the airlines are employing a similar strategy of an active load factor and passive yield, competition among domestic airlines will see depressed yields in 2014.

So folks, 2014 & 2015 will be a difficult year for AA! How now, folks? Heheheheheheheh!!

Folks, will the rally continue or end? Careful now! Hahahahahahahah!!

Folks, airlines will attempt to strengthen their own market share ahead of the implementation of the Asean Open Sky market in 2015.

A more difficult task for airlines! How? Hahahahahahahah!!

Since the cost of living is getting higher, strategies like cheap tickets with low yeild are imminent to induce locals to continue travelling.

How?

Folks, demand for air travel from locals could be affected by the higher cost of living sentiments, and hence, the airlines are expected to price their products competitively.

Hmmmmmm...!!

Folks, flight cancellation to & from LCCT

AK 5743 03/03/2014 11:55 PM TAWAU-KUALA LUMPUR
AK 6443 03/03/2014 10:55 PM KOTA BHARU-KUALA LUMPUR
AK 5121 03/03/2014 10:45 PM K. KINABALU-KUALA LUMPUR
AK 5235 03/03/2014 10:20 PM KUCHING-KUALA LUMPUR
AK 1057 03/03/2014 10:20 PM MACAU-KUALA LUMPUR
AK 5115 03/03/2014 06:50 PM K. KINABALU-KUALA LUMPUR
AK 5241 03/03/2014 06:15 PM BINTULU-KUALA LUMPUR
AK 5103 03/03/2014 05:25 PM K. KINABALU-KUALA LUMPUR
AK 1341 03/03/2014 04:40 PM PEKANBARU-KUALA LUMPUR
AK 5227 03/03/2014 02:10 PM KUCHING-KUALA LUMPUR
QZ 8304 03/03/2014 02:05 PM SURABAYA-KUALA LUMPUR
AK 1459 03/03/2014 12:15 PM HO CHI MINH-KUALA LUMPUR
AK 1337 03/03/2014 12:15 PM SOLO CITY-KUALA LUMPUR
AK 5223 03/03/2014 10:25 AM KUCHING-KUALA LUMPUR
AK 1391 03/03/2014 12:05 AM SURABAYA-KUALA LUMPUR

AK 5236 03/03/2014 10:45 PM KUALA LUMPUR-KUCHING
AK 1823 03/03/2014 10:05 PM KUALA LUMPUR-SINGAPORE
AK 6442 03/03/2014 08:30 PM KUALA LUMPUR-KOTA BHARU
AK 1390 03/03/2014 06:30 PM KUALA LUMPUR-SURABAYA
AK 1624 03/03/2014 06:10 PM KUALA LUMPUR-PHUKET
AK 5742 03/03/2014 06:00 PM KUALA LUMPUR-TAWAU
AK 5120 03/03/2014 05:15 PM KUALA LUMPUR-K. KINABALU
AK 1340 03/03/2014 02:30 PM KUALA LUMPUR-PEKANBARU
QZ 8305 03/03/2014 02:30 PM KUALA LUMPUR-SURABAYA
AK 5240 03/03/2014 01:25 PM KUALA LUMPUR-BINTULU
AK 5114 03/03/2014 01:20 PM KUALA LUMPUR-K. KINABALU
AK 5102 03/03/2014 12:00 PM KUALA LUMPUR-K. KINABALU
AK 5226 03/03/2014 10:15 AM KUALA LUMPUR-KUCHING
AK 1458 03/03/2014 08:00 AM KUALA LUMPUR-HO CHI MINH
AK 1330 03/03/2014 07:35 AM KUALA LUMPUR-BALIKPAPAN
AK 5222 03/03/2014 06:30 AM KUALA LUMPUR-KUCHING

View here: http://flight.klia.com.my/fids.aspx

North Korea fired two short-range missiles into the sea Monday in the second such launch in less than a week, amid ongoing annual military exercises between Seoul and Washington, South Korean officials said.

The launches appear to be a continuation of North Korea's protest of the drills, which it calls preparation for an attack, and a test of the country's weapons systems. They followed South Korea's announcement that North Korea on Thursday fired four short-range Scud missiles with a range of more than 200 kilometers (about 125 miles) into the North's eastern waters.

Careful now folks! Heheheheheheheheh!!

As competition between budget airlines heats up, the appeal in going low-cost for the long-haul appears to be growing.

But the big question: Can Asia's low-cost carriers go the distance?

LCCs, which were not allowed to fly between Malaysia and Singapore until open skies was implemented in 2008, now account for about 60 per cent of the Singapore-Kuala Lumpur market."

AirAsia currently has a leading 30 per cent share of capacity between the two cities. SIA and MAS will be less impacted by the planned high speed rail (HSR) project linking Kuala Lumpur and Singapore than the LCCs as they rely more on transit traffic.

With HSR project, frequencies will have to be cut significantly, likely more significantly than full-service carrier frequencies, and Singapore-Kuala Lumpur will certainly lose its current status as the largest LCC route in the world.

Investors have short memories!!

THE planned High Speed Rail (HSR) project linking Kuala Lumpur and Singapore could lead to a plunge in air traffic between the two cities, said Centre for Asia Pacific Aviation.

The HSR could also change the dynamics of competition between Singapore's Changi and Kuala Lumpur International Airport, particularly if the line includes stops at either or both airports.

The HSR line could also alter the country's domestic market should the line be extended to include other cities.

"Singapore and Kuala Lumpur are only about 350km apart and are connected by highways. But the lack of an HSR option and the opening of the air route to budget carriers in 2008 had led to a huge increase in flights between the two cities, making Singapore Changi Airport-Kuala Lumpur International Airport (KLIA) the third-largest international route in the world.

CAPA added that the HSR will be a game changer, just as it has been in the South Korea and Taiwan markets.

Careful now, folks! Heheheheheheheh!!

AirAsia group will defer 7 A320s in 2014 and 12 A320s in 2015 which will be delivered over the period of 2016-2026, in view of the short term problem at each of the country it operates.

The group will also embark on aircraft disposal plan in 2014, with initial target of 6 A320s (from Malaysia). The management expects US$120m proceeds from the sales, which will be used to fund the delivery of new A320s (replacement fleet).

The group will take 28 A320s in 2014, with 14 for Malaysia (replacing the existing 6 and swap 4 to India); 8 for Thailand and 6 for India. Net additional aircraft in Malaysia is only 4 A320s in 2014.

The management takes a cautious view on Indonesia by not adding new aircraft in 2014, given the uncertainty of general election and the economy (coupled with IDR depreciation). Furthermore, the planned IPO exercise has been scrapped.

We concur with management’s view on overall yield to remain depress in 2014, given the continued stiff competitive pressure exerted by MAS. Similar to MAS, AirAsia will focus additional capacity to international routes.

Target Price of RM2.22 - HLIB.

Now the big questions:

1. What.........the planned AAI IPO exercise has been scrapped?

2. Will AA share price be traded below given TPs like AAX?

Hmmmmmmmmmm.......Time will tell! Careful now folks! Heheheheheheeh!!

(1). KUALA LUMPUR, August 8, 2010 -- Southeast Asia's biggest budget carrier AirAsia will defer delivery of eight Airbus A320 aircraft by four years to 2014 due to “infrastructural constraints” at Kuala Lumpur's airport.

“AirAsia foresees infrastructural constraints with the current airport facilities and until the new LCCT (low cost carrier terminal) is constructed,” the airline said in a statement late Thursday.

The plan to defer the aircraft delivery would allow AirAsia to avoid the costs associated with leaving aircraft idle, hence avoiding having to incur depreciation and interest expense without earning revenue, it said.

“With the above deferment, the original delivery of 24 aircraft in 2010 shall be reduced to 16 aircraft,” it said.

AirAsia said it could exercise the right to postpone delivery of another eight aircraft in 2011 to 2014 if it informs Airbus before the end of October.

(2). KUALA LUMPUR, Feb 28, 2014 — Tony Fernandes’s decision to ease growth plans at AirAsia Group is a rare display of caution following his expansion across the continent, as the region absorbs some of the largest aircraft orders in recent years.

After taking 150 planes in 13 years for bases in Malaysia, Thailand and Indonesia, with 350 more in the backlog, the CEO of Asia’s biggest discount airline said he is ready to take a back seat,” deferring seven deliveries this year and 12 in 2015 to help adapt to a landscape where rivals are flooding the market.

......... Folk, another deferment but with different reason. How? Investors have short memories!!

European stocks look set for a lower open on Monday as brewing instability over Ukraine and weak official purchasing managers' index (PMI) figures from China will likely spark risk aversion.

Will AA rally continue? Careful now folks! Hahahahahahahahaha!!

Aircraft bankers accustomed to the warning signs say the trend will turn more clearly toward retrenchment as capacity increases weigh on yields, a measure of ticket prices, just as operating expenses are structurally increasing.

“The resulting effect is reduced profitability and deferral of deliveries,” said Bertrand Grabowski, managing director for transport at DVB Bank in Frankfurt. “There’s more to come!"

There you go, folks! Heheheheheheheeh!!

Liberalisation of air markets is also likely to be slower than planned.

Southeast Asian nations agreed to implement steps by 2015 removing operating restrictions for their airlines, only for Indonesia the fourth-most populous country to express concerns that such a move would harm its carriers, and to indicate that it may free up only limited destinations.

Folks, the concern is open skies may not appears as quickly as they wished for when they placed the original orders. How then? Hmmmmm..!!

Folks, airlines were bullish for good reason, but there were a lot of players putting in a lot of capacity.

You’ll see smaller expansion this year. Another brake is being applied in the form of insufficient infrastructure — including new terminals, runways and air traffic control systems to keep pace with demand.

How?

Folks, after taking 150 planes in 13 years for bases in Malaysia, Thailand and Indonesia, with 350 more in the backlog, AA is deferring seven deliveries this year and 12 in 2015 to help adapt to a landscape where rivals are flooding the market while planning to sell 6 existing aircfaft, adjusting to the challenges of intense competition and inadequate infrastructure.

Discount carriers accounted for 2% of total seats in the region a decade ago, versus 25% today, while the 50 or so such operators that began the year will probably have been joined by another 10 by the start of 2015.

Overcapacity is also likely to force consolidation. How? Will AA rally continue? Hehehehehehehehe!!

1. The health of China's manufacturing sector deteriorated further in February, the final reading of HSBC's Purchasing Mangers Index (PMI) showed on Monday, raising further downside risks to growth in the world's second largest economy.

2. The February PMI fell to 48.5 in February from 49.5 in January, its lowest in seven months. This is roughly in line with the 48.3 flash reading released last month.

3. A PMI reading above 50 indicates expanding activity while one below that level points to a contraction.

4. The final reading of the HSBC China Manufacturing PMI confirmed the weakness of manufacturing growth.

5. Signs become clear that the risks to GDP [gross domestic product] growth are tilting to the downside.

Australia is muchly affected when China sneeze. Who is next, Malaysia or other emerging markets? Careful now! Hahahahahahahahah!!

There were few bright spots in Asian stock markets on Monday, as brewing instability over Ukraine and weak official purchasing managers' index (PMI) figures from China sparked risk aversion.

Ukraine mobilized for war on Sunday, calling up its reserves after Russian President Vladimir Putin threatened to invade in the biggest confrontation between Moscow and the West since the Cold War, Reuters reported on Sunday

So will the rally for AA last? How folks? Heheheheheheheh!!

China should remain the key focus for markets this week, with the release of manufacturing activity data as well as the annual meeting of the National People's Congress which could shed some light on economic policy.

But events in Ukraine will dominate as well, as a stand-off between Ukraine and Russia threatens to escalate into conflict.

In China, the health of the economy remains in focus as investors digested the latest batch of manufacturing data.

HSBC on Monday released the final reading of its China PMI for February, which fell to a seven-month low of 48.5, roughly in line with 48.3 initial figure released last month.

So the big question: will the rally for AA continue? Careful now folks! Hahahahahahaha!!

Folks, Tony Fernandes’s decision to ease growth plans at AirAsia Group is a rare display of caution following his expansion across the continent, as the region absorbs some of the largest aircraft orders in recent years.

After taking 150 planes in 13 years for bases in Malaysia, Thailand and Indonesia, with 350 more in the backlog, the CEO of Asia’s biggest discount airline said he is ready to take a back seat,” deferring seven deliveries this year and 12 in 2015 to help adapt to a landscape where rivals are flooding the market.

There you go folks! Hahahahahahahahahah!!

Folks, is the LCCs party ending in the near-term with the rate of growth slowing down?

Careful now! Hehehehehhhehh!!

Folks, most of the aircraft orders come from the region’s two fastest growing airlines AirAsia Bhd and Lion Air.

Both carriers have placed orders for hundreds of Boeing and Airbus aircraft valued at tens of billions of dollars as they race to get Asians flying in a region set to overtake the United States as the biggest aviation market.

While Fernandes has dismissed speculation of an aircraft order bubble in Asia, AirAsia’s profits have taken a knock due to a grueling price war in its home market, stoked by Lion affiliate Malindo and competition from Malaysian Airlines. So how now? Wakakakakakakak!!

Buy now pay later! An aircraft buying being fueled by cheap interest rates. Ample liquidity provided by money-printing central banks has also made it easier to fund the relatively small upfront payments needed to place headline-grabbing plane orders.

But bankers warn the race to buy efficient aircraft in anticipation of high demand could spell trouble for the sector.

Folks, clearly everybody in Asia is ordering aircraft more than they really need! AA now plan to sell existing aircrafts while on the other hand defer new deliveries! How?

Folks, already last year, available capacity grew faster than passenger demand in countries such as Malaysia, the Philippines and Singapore, putting pressure on yields or the average revenue per passenger for every kilometer flown.

That could extend further in 2014 as carriers in Southeast Asia take delivery of about 230 aircraft worth over $20 billion this year, at a rate close to one new jet every working day.

How now? Dare to buy avaiation sector? Hahahahahahahah!!

Folks, Southeast Asian carriers have been devouring as many new airplanes as planemakers can sell, gambling that low fares and rising disposable incomes will drive the region’s 600 million-strong population to keep flying to new destinations.

But after years of explosive growth, the region’s budget carriers are now facing fears of overcapacity as deliveries accelerate, airlines expand into each other’s markets and currency weakness threatens to puncture economic growth.

The big question: why AA plan to sell aircrafts while on the other hand defer aircrafts deliveries? Interesting.........!! Heheheheheheh!!

AA plans to sell this year six of its aircraft. Fernandes also said there was a lot of interest coming from different quarters to buy the airline’s aging aircraft, which could result in AA disposing of 10 or 12 aircraft instead of six.

Planning to sell & defer more aircrafts? Hmmmmmmm....is that a sign of overcapacity of LCCs in Asia? Hahahahahahahaha!!

Low-cost carriers are flying high in Southeast Asia on the back of sharp growth in air travel, but as hundreds of new jets swarm into the region concerns are rising about its ability to absorb the record numbers of planes on order.

Now the big questions: Is that why AA plans to sell 6 of its aircraft this year? Is that why AA deferring seven deliveries this year and 12 in 2015 to help adapt to a landscape where rivals are flooding the market?

Careful now! Hahahahahahahahahah!!

The environment is certainly a competitive one for budget airlines operating in Asia right now. Remember folks, nearly all of Asia's premium carriers are investing in budget airlines.

Will the rally for AA continue? Hahahahahahahahh!!

Remember folks, AA selling planes because 2014 will be a difficult year with massive competition from other LCCs in Asia, weak ringgit & high fuel price.

Risk comes from not knowing what you're doing! Careful now! Hahahahahaha!!

Cheers..............!! Heheheheheheeh!!

Hahahahahahaha.. Thank God It's Friday! Party time folks! Wakakakakakakak!!

TGI Friday, folks! Party time!! Cheers.......!!

Folks, for the 1Q14 AA may have to contend with costlier jet fuel as the US dollar strengthens against the ringgit. More flight frequency meaning budget airline may have to pay more for fuel in ringgit terms.

A percent (%) appreciation of USD vis a vis ringgit will reduce AA earnings by approximately 8% to 13.7% for FY2013. The impact of a weakening Australian dollar versus the ringgit is also a bad news to AA.

Careful now, folks! Hahahahahahah!!

Folks, the cost environment remained hostile for Q1 earnings with the weakness of the Malaysia ringgit and continued high oil prices being the key challenges.

Will the Q1 earnings be impressive? Hahahahahahah!!

The key challenges for the increase in operating expenses for any airlines will be a rise in fuel costs plus to the weakening of the ringgit, rupiah or rupee against the US dollar!

How folks? Hahahahahahah!!

Folks ringgit was trading an average of 3.18 for the Q4E and able to make lower net operating profit. But for the month of Jan & Feb 2014 ringgit was trading at 3.28 - 3.35 price range.

Remember folks during Q3E13 AA has incurred massive losses on forex borrowings & high fuel prices when the ringgit weaken to 3.25.

So the big questionS:

Will Q1E be impressive?

Will the rally continue?

Sooner or later when the cash allocated for buy-back dry up, will price remain as now?

Careful now! Hahahahahahahahah!!

Don't worry, soon I will act pro on AA. Remember AA is in the overbought zone! Careful now! Hahahahahahah!!

Dorky masih rugi sebab dia buy in 3Q2013. Harga tinggi sangat tu! Hahahahahah!!

I tak kutuk orang tapi kutuk AA saja! Heheheheheheeh!! Orang kutuk saya sebab dia masih rugi. Saya sudah profit 50k ! How? Wakakakakakakakakaka!!