Folks, airlines expected to experience deteriorating financial performance in 2014 as unit costs are expected to rise due to a weaker ringgit.

Ringgit Vs dollar:
Jan 2014: Low 3.25 High 3.35
Jan 2013: low 2.94 High 3.05

Feb 2014: Low 3.28 High 3.35
Feb 2013: Low 3.03 High 3.11

Mar 2014: Low 3.25 High 3.31
Mar 2013: Low 3.03 High 3.13

Risk comes from not knowing what you're doing! How? Hahahahahahahah!!

Remember folks, without pressing a panic button the local & foreign funds are dumping slowly & surely before hell break loose after the 1Q14 announcement.

Weak 4Q13 results will carry into 1Q14 earnings. But the big question: will it be bad or ugly?

The truth hurts, folks! Hahahahahahahah!!

Again will the weak year low support at 2.18 hold? A hint: If a business does well, the stock eventually follows!

Investors have short memories!! Hahahahahahahahaha!~!

The beginning of the end for this stock to be above rm2? Hmmmmmm...this stock is on relentless tendency to regress towards its long-term mean! Careful now!

Hahahahahahahaha!!

Folks, someone stubbornly hold on to stocks where they are making sizeable losses in the belief that they can exit when the price reaches their buying price.

To those people, most of the minds are not trained to acknowledge the fact that they have made a mistake and probably the best thing is to move on.

Whatever the reason loving a stock, separate your emotions from the hard reality by asking are you buying or holding tight a disaster on its way down? Careful now! Hahahahahahahah!!

The airport tax at the current LCCT is RM32 for international passengers and RM6 for domestic passengers. It was reported that MAHB has proposed to increase this to RM35 for international passengers and RM7 for domestic passengers.

MAHB has proposed the new PSC at the KLIA at RM71 for international passengers and RM10 for domestic passengers, compared with the current RM65 for international passengers and RM9 for domestic passengers.

But now the International Air Transport Association (IATA) is in talks with the government for a balanced passenger service charge (PSC) at the KLIA and the spanking new klia2 in order to avoid discrimination to those operating at KLIA. How now? Hahahahahahah!!

The International Air Transport Association (IATA) hopes the Malaysian government will implement a balanced passenger service charge (PSC) at KLIA and the spanking new klia2.

The trade association for global airline industry had proposed for the PSC at KLIA and klia2 to be balanced at the RM44 and RM45 level.

The facilities at klia2 is at least the same, if not better than the KLIA. It is not fair to have a PSC that is significantly lower at the facility that is significantly better. So meaning the airlines that are operating at the KLIA also have a distinct disadvantge.

1. In Malaysia, for the 1Q14 base fares slightly lower than the prior year.

2. In Thailand, tourism has been impacted by the country’s political unrest.

3. In Indonesian the upcoming elections in the 2nd and 3rd quarter of 2014 may put downward pressure on the Rupiah.

4. In Philippines AirAsia Philippines / Air Asia Zest have revised their route plan which will see a reduction in the number of aircraft to 14.

5. Passenger Movementsat LCCT with Airasia, AAX, AA Zest, Cebu Pacific, Indonesia AA, Thai AAA & TigerAir:-
Jan 2014: 2.0 million
Feb 2014: 1.8 million
Mar 2014: 2.0 million

6. For the first time in memory, AirAsia’s 4Q profit was essentially flat qoq, despite the seasonal peak. 4Q13 core net profit was down 42% yoy despite an 11% rise in ASK capacity, as RASK fell 17% yoy to 14.36 sen on the back of weak pricing.

The last time 4Q RASK was lower than this was in4Q09, when jet fuel was 40% cheaper. Careful now......AA was trading below 1.30 in the 4Q09. Hahahahahahah!!

Folks, rate rises will impact some stocks dramatically, and therefore with borrowing becoming more expensive, businesses have to seriously think about what impact will have on their turnover.

But put rate aside will the weak 4Q13 results carry into 1Q14 earnings? A hint: If a business don't do well, the stock eventually follows!

Below Rm2 in the making, folks? Hahahahahahahah!!

Folks, long-term interest rates are now unsustainably low, implying bubbles in the prices of securities.

Remember folks when interest rates rise, as they surely will, the bubbles will burst, the prices of those securities will fall, and anyone holding them will be hurt.

The bursting bubbles could cause bankruptcies and financial-market breakdown. Are you ready for the perfect storm ahead? Remember folks buy lower & sell higher! At current price do you think AA good to buy? How? Careful now! Hahahahahahahah!!

A stronger dollar could have a negative effect on AA earnings. Earnings are precisely what this market wants to see to keep appreciating.

So with higher lending rates in the making, stronger dollar & higher fuel price which are the recipe for disaster to come, could the stock appreciate higher, folks?

Careful now as risk comes from not knowing what you are doing! Hahahahahahah!!

Will interest rates rise earlier than predicted? The market seemed to struggle with the same question, folks!

How might higher rates affect AA? Remember folks, Rm10.2b of AA borrowings are denominated in US Dollar (predominantly), RM and Euro.

In the business world, the rearview mirror is always clearer than the windshield. How? Hahahahahahahahah!

Folks, 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.

AirAsia has termed competition in Malaysia and Thailand as “irrational.”

So the big questions: Has the party ended with the rate of growth to slow down? Will an increase in lending rate affect airlines with hugh USD dominated debts? Hmmmmmm..!!

Airlines in Southeast Asia are estimated to have a fleet of 1,800 by the end of this year, he said, while their order book is set to surpass the 2,000 mark.

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, folks? Hahahahahahah!!

Folks, an aircraft buying being fueled by cheap interest rates and backed by Western export credits shows few signs of halting, with Vietnam’s VietJetAir and Thailand’s Nok Air both placing orders at the Singapore Airshow.

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.

So folks, with interest rate expected to increase in 2014, is this good news for AA with most of it debts in USD? Hmmmmmm...!!

Folks, LCCs are flying high in SE.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.

S.E.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 folks, will the weak 4Q13 results carry into 1Q14? Careful now! Hahahahahahahah!!

Will the rally continue? If a business don't do well, stock eventually follows! Hahahahahahahahaha!!

If stock market experts were so expert, they would be buying & selling stock, not giving advice. Would you buy at this price folks with all the bad news & more to come?

Even the management said that FY 2014 & 2015 will be a difficult year! Remember folks, if a business don't do well , stock eventually follows! Dare to believe? Hahahaha!

Its friday & time to party folks! Cheers!!

So folks, the big question: how high or low can Airasia share price go next week? Above 2.30 or below 2.10? A hint: if a business don't do well, stock eventually follows!

Hahahahahahahahah!!

Folks, are you hanging on to shares that are depreciating? Are you hoping the shares would pick up again?

Well folks, this is a very practical way to see your money melt down like a burning candle.

The big question: why are you greedy when the local & foreign funds are fearful? Hmmmmmmmm..careful now!! Hahahahahahah!!

Folks, for e.g Indonesia AirAsia is planning to adjust its network to focus more on international services, as the international market is more profitable.

However, while such decisions provide opportunities for more optimized fleet utilization, the carriers will also face the need for appropriate maintenance support & costs.

Has the party stop? Remember folks, never fall in love with a stock as its not going to be a faithful & loyal lover! Hahahahahahah!!

Folks, Southeast Asia is still a market with huge opportunities for further LCC growth. But LCC capacity expansion has started to outstrip supply, perhaps necessitating a pause for breathing space.

However, these are only a few alternatives to overcapacity. One of the other options for overstretched LCCs is to open up new routes to yet unserved destinations. This, in turn, would result in a rash of new routes into potential markets such as India or China, or a boom in more local services.

But the big question: Is this new route profitable to serve? Hmmmmmm...you tell me, folks!

Folks, overcapacity in the region could lead to some consolidation and reductions in the order book. First signs of the trend are already noticeable e.g AirAsia to sell six A320s and defer seven A320 deliveries which were originally slated for 2014 has reduced the 2014 expansion rate of Southeast Asia’s LCC fleet by about 3%.

Indonesia’s Tigerair Mandala also has dropped plans to add three A320s in 2014. In Philippines a wave of consolidation has helped the carriers to achieve more rational capacity levels.

Nevertheless, Southeast Asia’s low-cost carrier fleet is still projected to increase by nearly 20% in 2014. Hmmmmmm...if a business don't do well, the stock eventually follows!

Folks, the LCC penetration rate within Southeast Asia is now above 50%, having steadily increased over the last 10 years from less than 5% in 2003.

As a result, both Airbus and Boeing have released glowing predictions about the market for aircraft in Southeast Asia. However, there are signs that some of the airlines may have been overly optimistic.

Having grown by about 19% in 2013, the region’s carriers have created overcapacity in several Southeast Asian markets, leading to the current pressure on yields and load factors.

As a result folks, recent figures from AirAsia have indicated a 4Q13 profit drop of 19%.

So the big question: will the weak 4Q13 results carry into 1Q14? Hmmmmm..Investors have short memories!! Hahahahahahah!!

Folks, adding to the woes of budget airlines are full service carriers, who are turning the heat up to woo travellers.

The competition is not only between a low-cost carrier and another low-cost carrier. Flag carriers such as Singapore Airlines, Malaysia Airlines and Garuda are offering low fares as well.

The question remains whether 4 years from now, when they take delivery of the new aircraft, would things improve for the better? Remember folks, Airasia still has 350 more deliveries in the backlog! How? Hahahahahahah!!

Folks, the budget airline market is still growing and still looks good from the demand perspective, but the capacity that was added was too fast, so conditions will still remain challenging because there is so much capacity and very intense competition out there.

Airasia coupled with Tiger Air and Jetstar, will remove more than 20 aircraft that would have been added into the South-east Asian budget airline market.

But folks that is not sufficient to mitigate the overcapacity situation as the region’s overall fleet size is still projected to grow by 17% this year. The truth hurts!! Hahahahahahaha!!

Now even Tigerair’s move to cancel the existing order came shortly after AirAsia and Jetstar Asia announced similar plans to put capacity growth on hold.

So folks with steps taken to address concerns about overcapacity, LCCs still face a bumpy ride this year as competition continues to heat up.

So folks will there be growth in AA? Careful now! Hahahahahahahahahaah!!

Folks, even with budget airlines putting the brakes on capacity, they are likely to continue to find conditions challenging as passenger numbers have yet to catch up with the increased number of seats, with the total fleet in South-east Asia growing 19% last year.

LCCs are in an overcapacity situation. This means that what some of the low-cost carriers are doing like deferring aircraft deliveries will improve the market, but ... demand has to catch up with supply.

Steps may have taken by LCCs to address concerns about overcapacity by re-calibrating their growth plans, but they are still in for a bumpy ride this year as competition continues to heat up in the region. How now, folks? Hahahahahahah!!

Folks, the aggressive expansion strategies of aviation peers has led to overcapacity within Southeast Asia market.

The rapid emergence of new low cost carriers (LCCs) will see four new entrants (Thai AirAsia X, Indonesia AirAsia X, NokScoot and Thai VietJet Air) joining the fray this year, the bane of overcapacity for the industry came from peers’ aggressive expansion strategies.

These expansion strategies in S.E.Asia would add 88 new aircraft to bring fleet size to 573 by the end of 2014. So folks will there be growth for AA? Will the weak 4Q14 results carry into 1Q14? Hmmmmmm...!!

Beside higher fuel & weaker ringgit, AirAsia is also facing heavy competition, and it might not be able to pass on to passengers:

1. The 9% rise in landing charges from January 2014.

2. The upcoming 9%-11% rise in airport passenger service charges in February 2014.

3. The 6% GST in Malaysia from April 2015.

So the big question: Will weak Q4 results carry over into Q1FY14? The truth hurts, folks! Hahahahahahahahahaha!!

Bloomberg reported that the decision to ease growth plans at AirAsia Group is a rare display of caution following Fernandes’ 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, TF said that he was ready to take a “back seat”, deferring 7 deliveries this year and 12 in 2015 to help adapt to a climate where rivals are flooding the market.

Folks, risk comes from not knowing what you're doing. If a business don't do well, the stock eventually follows! How? Hahahahahahhahaah!!

AirAsia may kick off India operations in June 2013. Here: http://articles.economictimes.indiatimes.com/2013-03-05/news/37469791_1_telestra-tradeplace-airasia-kingfisher-airlines-ceo

AirAsia to start India operations by Sept 2013. Here: http://www.thehindubusinessline.com/industry-and-economy/logistics/airasia-to-start-india-operations-by-sept/article4613598.ece

AirAsia India to start flying from October 2013: Here:http://www.deccanherald.com/content/342254/airasia-india-start-flying-october.html

AirAsia to start operations in India by end of 2013! Here: http://timesofindia.indiatimes.com/business/india-business/AirAsia-to-start-operations-in-India-by-end-of-2013/articleshow/20836986.cms

AirAsia India hopes to start flying by January 2014. Here: http://www.thehindubusinessline.com/industry-and-economy/logistics/airasia-india-hopes-to-start-flying-by-january/article5271708.ece

AirAsia India operations to start in April 2014. Here: http://www.totalbluesky.com/2014/01/23/airasia-india-operations/#sthash.9eatCcjO.dpbs

AirAsia India aims to start operations in May 2014. Here: http://www.freemalaysiatoday.com/category/business/2014/03/06/airasia-india-aims-to-start-operations-in-may/

Report: AirAsia India to secure operating permit this week . Here: http://www.themalaymailonline.com/travel/article/report-airasia-india-to-secure-operating-permit-this-week

Folks, the carrier has missed a few launch dates in the past and is facing strong opposition in the domestic market with ongoing petition in the High Court.

So will AA India get it permit this week? Time will tell! Hahahahahahahah!!

The Delhi High Court on wednesday allowed a plea to sue DGCA as a party to a petition seeking quashing of approvals being granted by the Centre to operationalise between Tata Sons and Malaysia-based AirAsia. "Nothing is going to happen till May 1," the Indian High Court bench said.

The big question: Will AA India get their operating permit (OP) this week, folks? With below expectation dividend announcement & OP issue, will AA share price fly today folks?

Next issue will be the poor results for the 1Q earnings. Careful now! Hahahahahahahah!!

If stock market experts were so expert, they would be buying & selling stock, not giving advice.

Hahahahahahahahah!!

Folks, ask yourselves this question: why is there massive selling after the 4 sen dividend announcement? Must be below expectation causing the local & foreign to sell slowly & surely.

Another key issue for these funds, knowing 1Q results out in late May 2014 to be poor which may caused the share price to go even lower maybe below Rm2, would these big funds buy or sell more?

You don't want to know the truth folks! The truth hurts! Hahahahahahahaha!!

1. FY 2013 Dividend: Single Tier Dividend of 4 sen

2. FY 2012 Dividend: Single tier dividend of 6 sen & 18 sen

You want to know the truth? The truth hurts, folks! Hahahahahaaha!!

Price Performamce:

12 months
High: 3.54 (05/06/13)
Low : 2.18 (27/12/13)

Historical High: Rm4.00

Folks, why hang on to shares that are depreciating? Hoping the shares would pick up again? But this is a very practical way to see your money melt down like a burning candle.

Remember folks, if a business don't do well, stock eventually follows. The truth hurts!! Hahahahahahahahahah!!

When agree to move to KLIA 2 there will be more room for growth in AIrasia, folks!

But folks, Bloomberg reported that the decision to ease growth plans at AirAsia Group is a rare display of caution following Fernandes’ 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, TF said that he was ready to take a “back seat”, deferring 7 deliveries this year and 12 in 2015 to help adapt to a climate where rivals are flooding the market. Hmmmmmmm..!!

Investors become emotionally attached to a stock and overlook the company's shortcomings. Whatever the reason loving a stock, separate your emotions from the hard reality that it is time to sell.

If a business don't do well, the stock eventually follows! Investor have short memories! Hahahahahahahaha!!

Folks, ask yourselves why is Airasia paying less dividend than as promised 20% policy? Do you want a hint: If a business don't do well, the stock eventually follows!

The truth hurts, folks! Hahahahahahahahah~!!

Folks, 1Q14 preliminary operating statistics for AirAsia should be out in early May 2014 & followed by the 1Q14 results announcement late May.

So folks, are you ready for the perfect storm? If a business don't do well, the stock eventually follows!

Hahahahahahahahah!!

The carrier’s board will stick with a previously announced policy of paying an annual dividend of 20% of net operating profit, Fernandes told Bloomberg TV’s Rishaad Salamat.

"We are confident of paying that dividend out,” Fernandes said. “The dividend policy remains in place.”

But now paying less, folks. Investors have short memories! Hahahahahahah!!

1. Folks, MAHB consolidated revenue for the 1Q14 under review decreased by 30.3% or RM340.0 million as compared to the 4Q13.

2. The passenger movements for the 1Q14 decreased by 7.3% as compared to the 4Q13, in which the international and domestic passenger movements decreased by 2.2% and 12.2% respectively.

3. The passenger movements at KLIA-Main Terminal and KLIA-LCCT decreased by 6.2% (international: -2.8%, domestic: -15.3%) and 5.6% (international: -0.3%, domestic: -14.4%).

So folks, the big question: how will Airasia 1Q14 results be? Hint: read the above especially no:3!

Hahahahahahahahah!!

Now with the latest news on AA India & lower than expected dividend the big question now: how low will AA share price go? Below rm2.10?

But wait folks. What about soon to be announced 1Q14 results? Everyone here knew the results will be bad than 4Q13 but why are you still holding on tight?

Another big question: how low will AA be with poor 1Q results? Below rm2? Time will tell! Careful now! Hahahahahahah!!

Indian High Court on 23/04/14

"The government has lied to the court and they should not be permitted to go ahead with the deal," Swamy said.

"Nothing is going to happen till May 1," the bench said, adding that it will also take up the contempt plea of Swamy for hearing on that day itself.

Swamy, in one of his fresh pleas, has sought initiation of contempt proceedings against an official of finance ministry for allegedly making false statement in a reply filed on behalf of the Centre on October 25, last year.

Hahahahahahahah!!

For those trapped & refusing to sell earlier when apportunities came, FD giving better returns compared to this 1.75% dividend, folks!

Hahahahahahaah!!

Beware on on what you wish for when local & foreign funds dumping & JN88 buying! Only when the tide goes out do you discover who's been swimming naked! Hahahahahahaha!!

When investing, never fall in love with a stock as its not going to be a faithful & loyal lover, folks!

What a pity as who end up crying now, folks? Hahahahahahah!!

Folks, face the facts and move on. It is wise to direct your anger towards problems not people, to focus your energies on answers not excuses.

Investors have short memories as it is time to sell AA! Local & foreign funds are slowly & surely dumping due to lower than expected dividend.

Careful now! Hahahahahahahah!!