27/06/2013 TP Rm2.80 AMMB

26/06/2013 TP Rm4.16 TA

26/06/2013 TP Rm2.90 HWANGDBS

26/06/2013 TP Rm3.08 HLG

Now folks, who do you believe here? TA? ....... so please buy now!!!!!! Wakakakakakakakakak!!

Que sera sera! Latest TPs after AA Japan JV termination:

27/06/2013 TP Rm2.80 AMMB

26/06/2013 TP Rm4.16 TA

26/06/2013 TP Rm2.90 HWANGDBS

26/06/2013 TP Rm3.08 HLG

Careful now, folks!! Wakakakakakakakakakak!!

AA Japan also may not have targeted its flights effectively. The carrier charged a JPY1,000 (USD11) fee for passengers checking in at counters as opposed to kiosks or online, before dropping it on 19,Dec 2012 in the wake of the CEO changeover.

The carrier on 23,Jan 2013 expanded its distribution channels by accepting payments from half a dozen convenience store chains whose countless outlets dot the country.

AA Japan also incorporated payments direct from bank accounts. Credit cards are usually the staple of online ticket purchases but credit cards have a low take-up rate in Japan.

Cash is popular, as are re-loadable chip cards associated with public transport but available for use at other stores.

Meanwhile Australia's Jetstar, which commenced long-haul services international operations to Japan mid-last decade, has had time to build up its distribution and its brand recognition.

In launching Jetstar Japan, the Jetstar Group routinely noted its experience in the country and the Jetstar brand ranking in the top 100 in Japan, a respectable feat for a young and foreign airline.

There you go!

With failure at AA Japan, AA ran into similar problems in Indonesia after initially deciding to not use normal local distribution channels including travel agents.

Eventually AA learned its lesson in Indonesia and recently introduced a local distribution channel as it makes a second stab at domestic expansion.

So how?

Maintain HOLD on AA at unchanged fair value of RM2.80. While we are disappointed with the development as Japan looked like an attractive market, the exit will plug further cash outflow into the loss making unit.

Source: AmeSecurities

Folks, AA was also unwilling to budge on a 45-minute check-in cut-off time, which was extreme to a Japanese market used to the 15 minutes at ANA.

Even fellow LCC Peach found a compromise, having a 25-minute cut-off time.

ANA acknowledges it has learning to do about the LCC model, but found arrogance in AA's unwillingness to deviate from what worked in other countries.

AA also already served Japan through services to Tokyo Haneda and Osaka Kansai operated by sister long-haul LCC AA X.

But at AAv Japan, where ANA had majority control, AA was restricted in staffing appointments, with further erroneous decisions stemming from that.

With the JV terminated & resulted in increase costs for AA X, will AA X withdraw Japan routes next? Well folks, only time will tell!

Folks, AA Japan incurred a net loss of Rm97 million in 2012 and Rm67 million in 1Q2013.

AA Japan currently operates only four A320s but had been planning to expand its fleet to seven aircraft by the end of 2013.

AA Japan was clearly struggling. The carrier reported only a 70% load factor in 1Q2013.

The situation was only getting worse with its load factor reportedly slipping to 56% in Apr-2013.

Even during the Golden Week holiday in late April and early May, which is one of the busiest travel periods in Japan, AA Japan reportedly had a load factor of only 68%, compared to 91% for Peach and 79% for Jetstar Japan.

Will other JVs be any different?

Folks, diagnosing the exact cause of failure at AAa Japan, AA was also too bearish in the globalisation of its product, ignoring local distribution systems as well as Japanese nuances that it is now turning towards supporting the theory of "glocalisation".

This is somewhat surprising as AA previously learned a similar lesson in Indonesia, where its affiliate in the initial years struggled as the group ignored local nuances including the need for a local distribution solution.

So how?

Folks, the problem with the person who thinks he's a long-term investor and impervious to short-term gyrations is that the emotion of fear and pain will eventually make him sell badly.

So folks, emotions are your worst enemy in the stock market and not me! Heheheheheheheheheh!!

Que sera sera! What we learn from history is that people don’t learn from history.

Well folks, AA price movement is the combined behavior of thousands of people responding to information, misinformation and whim.

So which one are you? Heheheheheheheheh!!

Latest target price from research house after termination of JV in AA Japan:

26/06/2013 TP Rm2.90 HWANGDBS
26/06/2013 TP Rm3.08 HLB

Heheeheheheheeeh!!

Thai AA is confident of maintaining its strong performance here this year, despite the looming launch of two more low-cost carriers - Lion Air from Indonesia and VietJetAir from Vietnam while the local LCC is Nok Air.

The two foreign airlines are working with local partners to set up Thai Lion Air and Thai VietJetAir, with an eye to grabbing a slice of the growing domestic pie, fuelled by the tourism boom.

Time will tell!

AirAsia admits defeat in two-year attempt to break into Japan’s low-cost airline market.

With less order from Dyson & without new client this counter is slowly & surely going down!

And that is the reason why the owner is on selling sphree! Will there be new big client emerge to beef up their revenue?

Well folks, only time will tell!

Investors have short memories. Tomorrow force selling day for share traded on 21/6/13 40,388,500 units.

Careful now!! Heheheheheheheheeh!!!

Maybank IB: TP Rm3.00

- AA continues to pursue its aggressive growth ambitions across the region, with greater emphasiswith greater emphasis on Thailand and Indonesia at the moment due to their robust growth profiles.

- Management has decided to slow the pace of its growth in Malaysia due to the uncertainty of the KLIA2 opening.

- Management explained in detail that Malindo Airways is neither a competitor nor a threat to AA. When probed further during the Q&A session, the CFO stated that AA’s 2Q13 results will show a minimal negative impact on yields.

There you go, folks! 2Q13 results will show a minimal negative impact on yeilds.

Mind you folks, Malindo currently only operates KL-KCH-KL & KL-KK-KL sectors. With more aircrafts to come the impact on the yeilds will slowly & surely increase!

Wakakakakakakakakakak!!

HwangDBS Research: Price Target: RM2.90 / Terminating Japan JV

AA announced that it is terminating the JV with ANA Holdings Inc in Japan. ANA will be acquiring AA’s 49% stake in AA Japan (AAJ) for RM80.5m.

The development is positive in the medium term, as we assumed that AAJ would have continued making losses in 2013 and 2014.

However, the termination would not result in a higher forecast, given that the amount of LOSSES has already exceeded the Group’s investment in AAJ.

With the effective date for transfer of shares by end this week, the Group will cease to be shareholder in the Japan operations.

We maintain our Hold call and RM2.90 TP. We believe the strength of the Group's Thai business and steady Malaysian operations are priced in at current levels.

After attacking the Jet-Etihad deal, Janata Party President Subramanian Swamy today trained his guns on the AA proposal to set up an Indian carrier, saying the FIPB clearance to it was "not legally valid".

"It is clearly an attempt to cause a collapse of many of our domestic airlines, creating a systemic risk for financial institutions, loss to public exchequer and a vital gap in the country's infrastructure," he said in a letter to Prime Minister Manmohan Singh.

Swamy claimed the FIPB decision clearing the AA proposal was "not legally valid with either the requirement/ need of the aviation sector, the recommendations made by various empowered committees, and in fact, directly contravenes the existing policy as per decision of the Cabinet Committee on Economic Affairs".

Terming the proposal as "a gross and blatant fraud", he urged the Prime Minister to "revoke this impugned fraudulent AA deal", warning he would approach the courts through a Public Interest Litigation if no such action was taken.

So what next, folks? Only time will tell! Heheheheheheheheh!!

Folks, in the usual Asian “game” of avoiding a loss of face, both airlines tried to justify the end of AA Japan.

AA Group CEO Tony Fernandes said, “I have great respect for ANA as the leading legacy airline in Japan but it is time for us to part ways and focus our attention on what we do best, which is running a true LCC. Despite the cost issues, the AA brand has resonated with Japanese customers and the trend we see for July and August is very strong for all of Japan. I remain positive on the Japanese market and believe there is tremendous opportunity for a LCC to succeed, as proven by the success AA X has seen”.

Folks, the carrier’s load factors gravitated so far around 60% onkly. Wakakakakakakakakakak!!

AA Japan has been reporting losses since it began operations to five domestic destinations and two in South Korea.

The venture dented ANA's operating profit by about 3.5 billion yen in the year ended March, ANA's Senior Vice President Shinzo Shimizu said on Tuesday during a press conference.

The termination also involves the return of all AirAsia aircraft leased to AA Japan by November 1st 2013 and the payment of all monies accrued from the leasing of the aircraft.

AA Japan created in August 2011 and belonging to 51% to ANA and 33 % to AA never really managed to embark into an aggressive expansion course, which generally characterized any AA adventure.

In a statement published on Tuesday, AA acknowledged that issues stemmed from a fundamental difference of opinion between its shareholders on how the business should be managed from cost management to where the domestic business operations should be based.

Well folks, the honeymoon did not last for too long.

On Tuesday, after first denying any split, it was officially announced that AA Japan, with its two bases in Tokyo-Narita and Nagoya would be dissolved.

So divorce was consumed between All Nippon Airways and the AirAsia Group in Malaysia.

Back to August 2011, the announcement that AA and ANA would enter into a joint venture to create a new budget carrier in Japan sounded rather like an odd couple.

Folks, never two carriers could have been more opposed in their concept of air transport, from management to pricing or corporate culture.

Folks, Lion Air is also planning a new Thai joint venture, and Vietnam's VietJet Air is reportedly to be doing the same, thus creating more heat for the Thai and Vietnam incumbents.

But CIMB Research is not bullish on the earning prospects of most Asian airlines.

Malaysia's AA is one of the very few airlines that CIMB Research prefers at this juncture.

While it faces competition from Lion Air's Malindo in Malaysia, CIMB Research believed AirAsia should be able to manage the competition with ease.

Well folks, only time will tell! Hahahahahahahahahah!!

0.28 sen will be the next target if support level at 0.30 sen is broken. Interestingly LTH buying at 0.35 sen in Feb,2013.

Well folks, only time will tell! Careful now!

CIMB Research has maintained its Outperform rating on AirAsia Bhd at RM3.03 with a target price of RM4 after the low cost carrier disclosed that it would exit Japan by selling its 49% stake in AirAsia Japan to its partner ANA for RM80.5 million.

In a note Wednesday, the research house said this event was a big disappointment as AirAsia failed to monetise the potential, but also a relief from what could otherwise be a long period of losses.

“We maintain Outperform with our target still based on 11x CY14 P/E, which is the sector average. AirAsia’s short history has shown us that it will fight hard to win, but when withdrawal is the better option, it will not hesitate to do so.

“In our view, this is the mark of great corporate leadership. Upside catalysts include our belief that the Malindo threat will not be as bad as feared. We raise our 2013 forecasts for the sale proceeds,” it said.

Really meh, ...... Rm4.00? I will skip! Remember MEGB, folks? Recommemded by CIMB. Look at the price now (Rm0.48)!

Careful now! Investors have short memories!! Wakakakakakakakakak!!

Initiate coverage at RM3.18 with outperform call and target price RM4.62 view here: http://bursapricetarget.blogspot.com/2010/10/megb-masterskill-at-top-of-its-class.html

AA’s Vietnam venture grounded!

This comes just a month after AA chief executive officer Tony Fernandes and Pham Thanh Binh – chairman and chief executive officer of Vinashin, the country’s largest shipbuilder – signed a letter of intent to establish Vina AirAsia.

Under the agreement, AA will own a 30 percent stake in the joint venture, with the shipbuilder holding the rest. The airline was slated to have an initial fleet of nine aircraft.

A VietnamNet Bridge report claimed that some domestic airlines, including Vietnam Airlines and Pacific Airlines, did not ‘play fair’ by lodging a proposal to the government not to grant the licence to Vina Air Asia.

According to the report, Vietnam Airlines’ Director General and Chairman Nguyen Sy Hung had told the media that the national air carrier protested the joint venture project because “Vietnam should not be so easy on issues relating to commercial freedom”.

Hung was quoted saying that said that Vietnam Airlines itself still could not get the right to fly from Beijing to Moscow though it applied for that a long time ago. He added that the US does not allow foreign airlines to fly domestic routes due to security problems.

So how now?

After weeks of fevered speculation and public bickering, Malaysia’s AA and Japan’s All Nippon Airways have decided to terminate their low-cost venture, AirAsia Japan.

There’s a bit of bickering, too, about why it didn’t work. AA said differences over how to manage costs and where to base operations led to the breakup.

The two partners couldn’t “agree on the right people to manage the business,” AA CEO Tony Fernandes told Bloomberg.

For its part, ANA said cheap fares weren’t enough to win over Japanese customers and blamed a badly designed website and poor customer service.

ANA, which will buy out AA’s 33% stake for ¥2.45 billion, will continue to operate the brand till October.

Part of the airline’s woes might be blamed on the fact that Japan is a difficult market. AA Japan had set itself an ambitious target of 80% “passenger load” (i.e., seats filled). The industry average in Japan is a mere 55.3%. In April, the carrier filled just 56.4% of its seats.

High costs of ground handling services and other airport charges also made it difficult to keep costs down. The decision by AA Japan to set up its operating base at the new Narita airport, which is about 40 miles (64 km) from Tokyo and is not yet open 24 hours a day, didn’t help either.

The airline posted losses of 97 million Malaysian ringgit ($31 million) in 2012 and 67 million ringgit in the first quarter of 2013.

But at least part of the problem was also that AA Japan, which began operations last August, has been playing catch-up with two other budget airlines born in 2012—Peach Aviation, also part-owned by the ANA group, and Jetstar Japan, owned by Japan Airlines and Qantas.

And on passenger loads at least, these rivals have managed to beat the industry average. During the recently concluded Golden Week holiday, a prime time for air travel, AA Japan still managed to fill only 67.6% of its seats. Peach filled 91.3%, and Jetstar managed 78.8%.

Hmmmmmmmmmmmmmm!!

Folks, with AA India’s proposal to get airline license in the final stage, the proposed low-cost carrier has decided to use the now closed Kamaraj Domestic Terminal to set up its corporate office in the city.

Airports Authority of India (AAI) chairman V.P. Agrawal said the authority was ready to consider the airline’s request to use the now defunct building.

There you go, folks!

AA X Bhd, the long-haul arm of AA Bhd, will look into the possibility of reviving routes in Europe and India as it paves its way towards creating the world’s first global, multi-hub low-cost carrier (LCC) network.

Only time will tell if AA X will revive routes to Europe & India!

Announced today, AA said due to conflicting management styles, it would sell its 49 percent stake in AirAsia Japan for up to JPY2,450,000 to ANA.

As part of the termination, ANA will need to return all of AA aircraft leased to AA Japan by 1 November 2013 as well as unwind the use of the AA brand in its operations.

Now folks, where to park those aircrafts? What about the new aircraft planned for AA Japan? Hmmmmmmmmmmmmmmmmm!!!!!!!!

Folks, ANA will decide in July how to operate the former AA venture and will choose a name for the unit.

A possible merger with Peach was one option being considered. The unit will use the AirAsia livery until November.

The termination of the venture involves the return of all repeat all AA aircraft leased to AA Japan by Nov, 1.

Remember folks, AA Japan currently operates four Airbus A320s with a fifth due to join the fleet shortly.

ANA will return some in September with the remainder to be returned at the end of October.

The loss of some aircraft from September may result in cancellations. ANA will offer flights using its own aircraft where feasible.

There you go, folks!!

Heheheheheheheheheh!

Well folks, I'm quoting about selling on 24 & 25 Jun.

Latest announcemnt only show EPF transaction done on 20 Jun (surat khabar lama news)!

Dumping this week because of:
- Lukewarm response on AAX ipo
- Dissolution of AA Japan
- Cancellation of aircrafts delivery to AA Japan will effect AA
- Any increase in US lending rate will affect AA the most which will materialise sooner of later

Failure by AA Group:
- FlyAsianXpress
- A long-haul, budget airline to medium-haul
- Withdraw flights to India, Europe, Iran & New Zealand

So how? Wakakakakakakakakak!!

Slowly & surely the local & foreign funds are on dumping!

AA and All Nippon Airways are set to announce the dissolution of their tie-up in Japan on Tuesday, reports said, because of slumping business.

Malaysia-based AA is to withdraw from AA Japan, a company it jointly formed with ANA to begin low-cost carrier operations out of Tokyo's Narita International Airport in August 2012, Kyodo News reported, citing unnamed sources familiar with the matter.

AA aims to establish a new budget airline in partnership with another Japanese carrier after parting company with ANA, Kyodo said.

A senior AA executive told the newswire on Monday that the company had made its decision and an announcement would be made Tuesday.

The report came two weeks after a similar report by the business daily Nikkei, which said the two airlines agreed that ANA would buy the 49 percent stake held by its Malaysian counterpart and turn the joint venture into a 100 percent subsidiary.

The airline's Japan service is likely to continue under the Peach Aviation brand when AA Japan's service finishes at the end of October, it said.

Peach Aviation is an ANA group budget carrier based at Kansai International Airport, western Japan.

Will AA India JV be any different? Well folks, only time will tell!

fOLKS, Nok has been growing more rapidly than Thai AirAsia over the last year.

Nok in Jul-2013 will offer about 131,000 weekly domestic seats in Thailand, up over 40% from Jul-2012.

Thai AA will offer about 132,000 weekly domestic seats, up about 26% from Jul-2012.

Based on current forward schedules, Nok will overtake Thai AA in Aug-2013, when Nok further increases domestic capacity to about 134,000 weekly seats.

But folks, the success of Nok and Thai AA as well as their continued growth in Thailand’s market also attracts potential new entrants.

Indonesia’s Lion Air Group is in the process of establishing an affiliate which, if launched, could significantly intensify competition in Thailand’s market.

Hahahahahahahahahah!!

AA reportedly plans to pull out of its AA Japan JV with ANA Holdings by late Oct-2013 with a formal announcement expected to be released today.

The carrier stated it will remain involved in the Japanese market. AA Group CEO Tony Fernandes reportedly said the carrier will seek an alternative partner to replace ANA.

ANA plans to purchase AA’s stake in AA Japan and establish AA Japan as a wholly-owned subsidiary. So how now, folks?

Folks, Nok Air over the last two years has been an important component of Thai’s multi-brand strategy for fending off growing LCC competition in its home market.

Thai Airways increased its stake in Nok from 39% to 49% in late 2011. The additional 10% was purchased for only THB165 million (USD5 million) from Krung Thai Bank, which was also one of the 10 original investors.

The value of this stake has since increased about ten-fold as Nok is currently valued at THB16.56 billion (USD532 million).

Folks, Nok Air is well placed to build on its strong position in the Thailand domestic market and fend off potential new competitors following an initial public offering which raised THB4.875 billion (USD156 million).

The Thai Airways affiliate will use the proceeds to expand its fleet to at least 30 aircraft by the end of 2015 with a focus on growing existing domestic routes.

Nok already offers Thailand’s largest domestic network with 22 destinations and 24 routes.

About half of its routes are served with turboprops, giving the hybrid carrier a leading position in Thailand’s regional market.

Overall Nok is the third largest domestic carrier in Thailand behind Thai Airways and Thai AirAsia, but has been rapidly closing the gap with Thailand's largest LCC.

Wakakakakakakakakakakakakak!!!!!!!!

My condolence to those buying AAX ipo.

Folks, AA X IPO for public oversubscribed 3.83 times.

2,000 60%
3,000 60%
5,000 20%
10,000 20%
20,000 21%
100,000 25%.

The Bumiputra portion are 100%.

The institutional price has been fixed at RM1.25 per share.

Hahahahahahha...... look like going to be below offer price on the opening day! Bad news for AA counter!

Folks, Malindo captures a 15% share of Kuala Lumpur-Kuching market.

Remember folks, Kuala Lumpur-Kuching is AA’s second largest route with 14 daily frequencies. It is currently the third largest route for MAS with seven daily frequencies.

So how?

Folks, Malindo’s low fares to pressure yields at MAS and AA!

Folks, Malindo targets both MAS and AA with hybrid product.

From a product standpoint, Malindo is targeting MAS. But its low fare structure is aimed more at the low end of the market.

With its hybrid model and “not just low cost” marketing slogan the carrier is trying to woo passengers by offering a low fare while still providing a relatively high level of service.

Kuala Lumpur-Kota Kinabalu is the largest route for AA and MAS. Malindo captures 11% share of Kuala Lumpur-Kota Kinabalu market.

Just prior to Malindo’s launch on 22-Mar-2013, MAS accounted for a 36% share of capacity while AA accounted for 64%.

Lion, however, faces huge challenges as it starts to dip its paw in other markets.

Competition in any new market Lion enters will be fierce as it will not have the first low cost mover advantage it had in Indonesia.

Pan-Asian low cost airline groups like AA, Jetstar and, to a lesser extent, Tiger, already occupy the high ground.

Internationalisation with a focus on Southeast Asia is the right strategy for Lion as it cannot continue to rely almost entirely on the Indonesian domestic market.

Eventhough Indonesia has emerged as one of the world’s largest and fastest growing emerging markets but with nearly 600 aircraft on order Lion needs to hedge its bets and not limit its growth to Indonesia, particularly given the threat that growing infrastructure constraints could lead to slower growth over the medium to long-term.

In Indonesia AA see it from a different angle, folks. So how?

Folks, Lion has embarked on the first phase of an aggressive international strategy which is starting to see the fast-growing airline group diversify away from its roots in the Indonesian domestic market.

The Mar-2013 launch of an affiliate in Malaysia, Malindo, is expected to be followed by joint ventures in other Asian markets, starting with Thailand.

A low cost, but hybrid operator, Lion over time will also look to grow its now tiny international network from its home market of Indonesia.

All the best, folks!