Folks, you don't look to jump over 7-foot bars (high price) to buy share: You look around for 1-foot bars that you can step over (low price).

Does that make sense, folks?

Folks if you used emotion to buy shares then only when the tide goes out do you discover you have been swimming naked.

Hahahahahahahahah!!

Folks, risk comes from not knowing what you're doing.

Think With Your Head, Not Your Heart(Emotion)

Folks, when buying share making decisions and reacting to situations can be trying at times. The ability to maintain objectivity and keep emotion out of the decision making process is important.

Yet there are many people who base at least some decisions on emotion rather than facts and sound judgement when buying shares.

In short, try to think about market & bussiness situations in a logical manner. Consciously try to remove the emotion from the situation at hand eventhough how cheap the price is.

Remember folks, what seems low and cheap generally goes lower!!

Remember folks, Rule No.1 Never lose money. Rule No.2 Never forget rule No.1.

Wakakakakakakkakakakak!!

Careful folks! Hahahahahahah!!

March, 18 2013 10:31:00

Silk Air set to add routes in Da Nang while Airasia to cease flights effective June 10.

Q. Why has SilkAir decided to add flights to Da Nang and not to Ha Noi or HCM City?

A. SilkAir believes there is immense potential in Da Nang that can be tapped in terms of business and tourism traffic. Da Nang is fast emerging as a popular tourist attraction in the region and we anticipate strong demand for this route amongst our business and leisure travellers.

There you go folks, latest news on AA! Not old newspaper news as posted by our fren! Hahahahahahahah!!

Folks, AirAsia will terminate its four weekly flights from Kuala Lumpur to Da Nang, Vietnam, effective June 10 2013.

In a statement, AirAsia said guests affected by the withdrawal of this route would be offered options to alleviate any inconvenience that might occur.

It said each affected guest would be notified via their registered member e-mail account on the AirAsia website, as well as, a short message service (SMS) notification of the route termination.

AirAsia said affected guests would be offered three options which would include moving their flights to an earlier date to or from Kuala Lumpur or Da Nang, Vietnam, without any extra charges but subject to availability.

It will also offer a credit shell for the value that they had paid with a six months validity or full refund.

So, to those affected please take note!

Mercado: Boycott Air Asia

Folks, they say & not me, ok! Don't believe view here: http://article.wn.com/view/2013/03/17/Mercado_Boycott_Air_Asia/#/related_news

Neil Mills, chief executive officer joined SpiceJet in October 2010 when it had 22 planes. Under his watch, the carrier has more than doubled its fleet to 52, started the process of importing jet fuel directly.

Mills spoke in an interview on Sunday night at the venue of the Routes Asia conference organized by the GVK group. Edited excerpts:

Q. You said in November that you were expecting the first shipment of jet fuel worth Rs.50 crore in January, with just one bureaucratic hurdle to be cleared. You were the first airline to get clearance to import jet fuel.

A. Yes, we were expecting the first shipment. All commercial agreements for importing aviation turbine fuel (ATF) are already in place. (There's) just one bureaucratic hurdle from one of the ministries. We are yet to get a green light for (this).

Q. Which ministry?

A. I can't give you the details. Yes, the shipment has been held up for the last seven months because of bureaucratic delay.

Q. Analysts say that SpiceJet would be hit the most by the AirAsia venture.

A. As I said earlier, any rational and logical competition is welcome. Based on the competition posed by AirAsia, we can make the changes then. But how can AirAsia get a low-cost advantage in India? This is not Malaysia.

-There are a lot of issues in India where AirAsia will have no influence. Where will the efficiency come from? The airport charges and jet fuel costs are high. SpiceJet is not paying a huge salary. I am just paying market-driven salary.

-Fifty-five percent of our cost is ATF, 12-13% is employee cost, aircraft cost is 8-10%. Where will the flexibility come from? We are also having better turnaround of aircraft and lower employee-aircraft ratio. We have 700 staff in airport security. We don't want that many.

-But we are mandated to do that. So I don't understand where will the advantage come for AirAsia? Maybe I have to learn more from them. And I'm happy to learn.

Folks, India's civil aviation sector is governed by an archaic Civil Aviation Act of 1937, an era when the concept of low-cost did not exist at all.

"We are not even allowed to charge for allocated seating here so how are they (AirAsia) going to do that? Will a different set of rules apply for them?" wondered Mills.

There you go, folks!

Latest on MAJOR SHAREHOLDERS

As of 30/11/2012 - TUNE: 710,931,282 units 25.75%
As of 18/03/2013 - TUNE: 646,128,292 units 23.24% (Latest)

As at 25/09/2012 - EPF: 273,585,900 units 9.84%
As of 18/03/2013 - EPF: 230,308,000 units 8.31% (latest)

As at 23/01/2013 - WELLINGTON: 324,591,988 units 11.68%
As of 18/03/2013 - WELLINGTON: 270,328,756 units 09.33% (Latest)
-Disposed 08/03/2013 4,000,000
-Disposed 11/03/2013 6,443,800
-Disposed 12/03/2013 350,000

There you go, folks!

1. Maybank IB: Malindo threat remains. There will be a price war between Malindo and Airasia. Airasia’s share price has retraced by >25% since the announcement of Malindo’s intention to commence services in Oct 2012.

2. Kenanga: Malindo's entry into Malaysia will be the immediate threat for AirAsia while the risk of higher fuel cost is still high in 2013.

3. Alliance: Airasia can expect intensifying competition from both newcomer Malindo.

4. HLG: Uncertainties from the entry Malindo Airways & aviation Exposure to Sulu Invasion in Sabah.

5. HwangDBS: 4Q12 core profit of RM361m above our expectations but below consensus.

6. BAML: Bank of America Merrill Lynch, saying it is keeping its NEGATIVE stance on Airasia ahead of the general elections, has given a price objective of RM1.85 to the airline.

7. RHB: Malindo entry to have negative impact on Airasia & MAS.

Folks, the lure of a generous special dividend amounting to Rm666 million cash payout will only generate short term significant investor interest in the stock until the dividend ex-date. Don't believe look at the trading price now!

Careful loh!! Haahahahahahahahah!!!!!!!

1. Malaysian start-up Malindo Airways has taken delivery of its first aircraft ahead of its launch next week.

2. The airline’s first Boeing 737 arrived at its Kuala Lumpur International Airport base on March 15, 2013 and will be used for its initial operations, which are slated to commence on March 22, 2013.

3. The airline will launch services on March 22, 2013 after delivery of a second aircraft, initially offering a four-times daily link to Kuching and a three times daily service to Kota Kinabalu.

4. It is also understood to be planning flights to Miri, Sandakan, Bintulu, and Sibu and to expand into international markets, including destinations across Asia, including China, Thailand, Vietnam and the Philippines.

5. According to local sources, a secondary hub is also under discussion for Kota Kinabalu while medium- and long-haul services are planned in the future.

6. Malindo Airways is due to receive five leased Boeing 737-900ERs in the first phase of its development which will be configured in a two-class arrangement with 12 Business Class and 168 Economy seats.

7. According to company executives it will add around 12 aircraft a year, growing to a fleet of 100 jets by the end of 2021.

8. Folks, the launch of Malindo Airways will certainly put pressure on existing operators in Malaysia.

There you go!!

1. Bank of America Merrill Lynch (BAML), saying it is keeping its “negative” stance on AirAsia Bhd ahead of the general elections, has given a price objective of RM1.85 to the airline -- a 37.5% discount to its last traded price of RM2.96.

2. The research house said: “We believe increased news flow over Malindo’s launch in the coming weeks and fears of how severe the resulting price erosion will be, as well as uncertainty over the upcoming Malaysian elections, will keep the stock under pressure.”

3. “This is a trough valuation multiple reflecting our expectation of a sharp decline in earnings through 2014 as main rival Lion Air aggressively expands in Malaysia,” it said.

Enjoy reading moe here: http://my.news.yahoo.com/ba-merrill-lynch-pegs-airasia-low-rm1-85-093026044--sector.html

Have a nice day & happy investing, folks!

U.S. stock futures sank in early European trading hours on Monday, after plans for an unprecedented Cyprus bank-deposit levy sent investors fleeing for the perceived safety of the dollar and out of oil, Asia stocks and the euro.

S&P 500 futures: down 22.8 points 1.5%, at 1,530.80
DOW futures: down 152 points, or 1%, at 14,281.
Nasdaq 100 futures: lost 40 points to trade at 2,750.50.

Markets were jolted by news that Cyprus will receive 10 billion euros ($12.9 billion) of financial aid but with heavy conditions notably the imposition of a levy on private bank deposits. It’s the first time depositors have been asked to contribute to a financial-rescue plan during the euro-zone debt crisis.

Remember folks, you can never predict when that unknown torpedo will come out of the dark and smash the price of a stock!

Careful now, folks!! What seems low and cheap generally goes lower. Hahahahahahah!!

DAX : 7,943 -100 1.24%
CAC : 3,783 -67 1.74%
FTSE MIB: 15,681 -379 2.22%

European stock markets opened sharply lower on Monday, after a bailout for Cyprus, including a controversial levy on bank deposits, announced over the weekend prompted uncertainty in global financial markets.

KLSE tomorrow? Another -20 points down? Don't play on thin ice, folks!! Hahahahahaha!!

Asia Dow : 2,955 -58 1.94%
Nikkei225:12,221 -340 2.71%
Hang Seng:22,083 -450 2.00%
Shanghai : 2,240 -38 1.69%

Asia stocks reacted badly on Monday to plans for an unprecedented levy on private bank deposits in Cyprus in exchange for a financial bailout.

More selling tomorrow? Cyprus? GE? Malindo? Careful now, folks!!

Good news then?

Definitely! More choice means airlines are forced to differentiate themselves from one another. Usually the only way in which they can do this is by price.

And with Malindo Air promising to open up more routes, both domestic and international, air travellers can expect to see the benefits, not just for peninsular Malaysia to Sabah and Sarawak, but also elsewhere.

Malindo Air's motto is telling: 'not just low cost'. Could this hybrid model be the new way forward for aviation in Malaysia?

There you go, folks!

Will it affect other airlines?

Malindo Air is taking on both MAS and AA, being the compromise many passengers are looking for between paying low fares but still benefiting from in-flight services without hidden extra costs.

By operating the most popular domestic routes, fares will certainly drop across all airlines: up to now, AA as the sole low cost carrier to service KL - KK and KL - Kuching routes has been able to charge moderately expensive fares, sometimes even higher than those of MAS.

With the arrival of Malindo Air, that will be set to change, and AA will have to work hard to convince passengers to fly with them on the same routes.

So how now, folks?

How is Malindo Air different from the rest of the market?

Malindo Air is a prospect which both MAS and AA must be dreading, as it is a hybrid of two airline models. A low cost carrier model, it offers a business class and economy class with in-flight perks.

Economy class can enjoy up to 15kg free hold luggage, personal TV for in-flight entertainment, light snacks and a 32 inch seat pitch. Compare that to AA’s 29 inches seat pitch (32 inches on AA X) and MAS at 34 inches. Business class passengers can check in up to 30kg free and enjoy meals and a 45 inch seat pitch.

Malindo Air is also not flying from LCCT - instead, they are flying out of KLIA, making it a little more convenient to take their flights over AA.

What routes do Malindo Air offer?

Malindo Air's flight booking engine opened up for business this week with special promo fares, but for two routes only so far: Kuala Lumpur to Kuching, from RM38 and Kuala Lumpur to Kota Kinabalu, from RM68, all inclusive. Malindo Air plans to fly three times daily to KK and four times daily to Kuching, both routes accounting for the heaviest passenger domestic Malaysian routes.

Other domestic and international routes are being planned, but have yet to be announced.

Will Malindo Air change how you fly, folks?

Malindo Air is poised for its maiden flight from Kuala Lumpur to Kota Kinabalu on March 22nd, followed by its first flight from Kuala Lumpur to Kuching the next day.

Since we first reported on Malindo Air, back on the 16th September 2012 and on 19th September, they sure have been busy, obtaining their Air Operators Certificate, raising a capital of US$1.1billion to buy new aircraft and employing hundreds of employees, from pilots to cabin crew.

Beware Air Asia: New Budget Airline This 22 March 2013

Now everyone can fly with a new addition to the growing host of low-cost airlines. Malindo Air, a joint venture between NADI and Lion Air from Indonesia is set to compete with AA and Firefly for cheap flights and flight routes.

Malindo Air will be launching their maiden flight on 22 March 2013, offering Kuala Lumpur to Kuching tickets from as low as RM38. Do you think Malindo Air will be a hit, folks? Hehehehehheheheheh!!

Reacting to AA's entry in the Indian market where operational costs for airlines have shot up by 40% in the last couple of years due to the levy of high taxes on fuel and a drastic increase in airport tariffs, Neil Mills, SpiceJet CEO, said AA might find it difficult to replicate a model of charging for every value-added service in India.

India's civil aviation sector is governed by an archaic Civil Aviation Act of 1937, an era when the concept of low-cost did not exist at all.

"The 1937 Act did not envisage the low-cost model and that law stipulates what governs what the airlines can do and (can) not do in India.

So, we are not even allowed to charge for allocated seating here so how are they (AirAsia) going to do that?

Will a different set of rules apply for them?" wondered Mills.

SpiceJet, the low-cost carrier promoted by Kalanithi Maran, is not "too worried" about the impending entry of AA, its CEO said, in what is the first reaction since the Malaysian budget airline announced in February its JV with Tata Sons.

AA having made its intentions public that it will focus on catering to the market in south India before spreading its wings to a pan-Indian presence, made many analysts to reason that SpiceJet, with core of its operations in the south, will be impacted the most by the entry of AA.

1. Singapore and Malaysia announced last month that they have agreed to build a high-speed railway link that will cut travel time between Malaysia's capital and Singapore to just 90 minutes.

2. Fares for flights between Singapore and Kuala Lumpur could fall by close to 50 per cent once a new high-speed rail link is up, said an expert, who predicted that travellers will favour wheels to wings, in line with the situation in other countries.

3. While flight time between the two cities is only about an hour, the travel time for most passengers goes up to three or four hours after taking into account travel to and from airports, and check-in and immigration procedures. Travel by coach takes about five hours.

1. The new player Malindo Air will commence operations on Friday. Two aircraft will fly to Kuching four times daily and Kota Kinabalu three times daily from Kuala Lumpur.

2. Ramamurthy said the airline will add more destinations soon and it will also start its international flights this year. However, he remained mum on where the destinations would be.

3. The airline will start its Kuala Lumpur-Kota Kinabalu flights on March 22 and Kuala Lumpur-Kuching the following day.

4. It is offering an all-inclusive fare of RM38 to Kuching and RM68 to Kota Kinabalu, with add-on deals such as personal TV for in-flight entertainment and WiFi at a small cost.

5. The ticket sales to Malindo Air's two destinations have been encouraging, said Ramamurthy, adding that he hopes the flights will be full.

What seems low and cheap generally goes lower! Will afternoon session be more bloody?

Remember folks, Bank of America Merril Lynch has given a TP of rm1.85 due to the coming GE & increasing competition from other LCCs.

Careful now!! Heheheheheheheheh!!

Malindo is all geared up for an all-out expansion as it launches its first aircraft and plans to announce further flight routes by the end of this year.

“We will be receiving 10 more aircraft this year in line with our plans to launch international and domestic flights by the end of this year,” Malindo Airways Sdn Bhd CEO Chandran Ramamuthy said at the launch of the group’s first B737-900ER aircraft last Friday.

The B737-900ER aircraft has 12 business and 168 economy seats with a total of 180 seats.

According to Chandran, the airline currently has two aircraft and will receive one plane every month, bringing the total to at least a dozen by year-end.

Malindo is expected to fly to Southeast Asia, China and India by year-end.

So how now, folks?

Malindo Air To Start International Flights By June This Year

KUALA LUMPUR, March 15 (Bernama) Malaysia's first hybrid airline model, Malindo Air, is planning to begin its international flights by June this year.

Read more here: http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=934865

Folks, Airbus to sign mega A320 order from Asia's Lion Air!

European aerospace giant Airbus will sign Monday what would mark one of its biggest orders ever from Indonesia's Lion Air for more than 200 A320 medium-haul jets, business daily Les Echos reported.

The deal is expected to be worth more than $20 billion (15.3 billion euros) with a standard A320 model priced at $91.5 million. Its newer and more fuel-efficient NEO plane has a price tag of more than $100 million.

French President Francois Hollande's office said that he would host the chief executive of Airbus to celebrate the signing of "a major industrial agreement."

With some 240 million people, Indonesia is the world's fourth most populous nation and most far-flung archipelago with more than 17,000 islands scattered across 33 provinces.

Air travel has grown sharply in recent years with the emergence of budget carriers like Lion Air, as well as rising incomes thanks to steady economic growth.

There you go, folks!

Remember folks, GENESIS dated 31/01/12 has ceased to be a substantial shareholder with less the 4.98% (140 million shares) in their portfolio.

That leave Tune, WELLINGTON & EPF as the remaining substantial shareholders. But sadly as per Bursa latest announcements, EPF & WELLINGTON seem to reduce their exposure on AA also.

For record, WELLINGTON has before ceased to be a substantial shareholder.

Will the Bank of America Merril Lynch TP at RM1.85 trigger another round of massive selloff?

Only time will be the judge to that, folks!

Folks, 2012 was a milestone year for AA as it added two new carriers to its portfolio, ending a hiatus of seven years without launching a new affiliate.

But adding two new affiliates at almost the same time created challenges and is a drain on resources, both financial and intellectual.

The launch of yet another new affiliate in 2013 will add to the short-term headache. Exacerbating the situation, AA faces new competitive challenges in its original three markets.

AA says it is now finished with expanding its portfolio. Eventually at least some or, as Mr Fernandes hopes, all three new affiliates will be profitable.

If all the ventures are ultimately successful, AA will be one of the top three LCC groups in the world and the fleet of 475 aircraft that the group has committed to will easily be absorbed.

But for now the pain of expansion, and in the case of Malaysia the pain of being so wildly successful to spur new competitors, is being felt.

Remember folks, in this business if you're good, you're right six times out of ten. You're never going to be right nine times out of ten.

Indonesia is a big enough market for AA and Lion as well as other LCCs such as Tiger affiliate Mandala and Garuda subsidiary Citilink.

But these four carriers could be in for a prolonged battle for the fast-growing lower end of Indonesia’s domestic market, resulting in over-capacity in some markets and losses for at least some of the players.

Malaysia is not a big enough market for two large LCCs and there could be a blood bath if new Lion affiliate Malindo expands ambitiously.

AA will certainly survive any looming battle and is well positioned to remain the leading LCC in its extended home market of ASEAN as well as in the broader Asian market. But it faces a challenging chapter as competition intensifies in Asia’s dynamic LCC sector.

While there is a risk of hyper competition in Southeast Asia, the group also faces two strong competitors in the new Japanese LCC market and will have to compete against several established LCCs when it launches in India in 4Q2013.

AA India will attempt to carve out a new niche by focusing on secondary routes from a base at Chennai but it will almost certainly face a response from India’s five existing LCCs given the LCC penetration rate in the Indian domestic market already exceeds 60%.

Lion poses the biggest challenge to AA. While the competition is intensifying in Thailand, the conditions for 2013 are not as challenging in Thailand as they are in Indonesia or Malaysia.

In Thailand, AA is already well established in both the domestic and international markets and its main competitor, the Thai Airways Group, has traditionally struggled to compete against LCCs.

In Indonesia and Malaysia, AA faces in Lion a LCC with an extremely low cost structure and an ambitious expansion plan that is supported by an order book that is almost as massive as AA’s.

Thai AA also faces a new competitor in hybrid carrier Thai Smile, which the Thai Airways Group launched in mid-2012 and is being used along with Nok to try to fend off Thai AA.

Thai Smile selected Thai AA’s second international largest route, Bangkok-Macau, as its launch route and is now competing against Thai AA on nearly all of its routes.

Nok’s forthcoming initial international route, Bangkok-Yangon, is Thai AA’s third largest international route.

Prior attempts by AA to compete against Lion in Indonesia’s domestic market failed as AA did not recognise the importance of offline distribution.

AA still faces an uphill battle domestically in Indonesia but is willing to invest heavily in trying to secure a large slice of Indonesia’s domestic market.

The recent bankruptcy of Batavia, a full-service carrier AA looked at acquiring in 2012, is a boost as it means there is one less competitor to worry about.

Indonesia AA tries to establish a meaningful domestic presence. While Indonesia AA is the largest carrier in Indonesia’s international market, it currently has less than a 5% share of domestic capacity.

Most of the eight A320s being added by Indonesia AA in 2013 will be allocated to the domestic market.

This coming Monday will the KLSE be bullish or bearish? Adiosss folks!!

Last but not least folks, what seems low and cheap generally goes lower!!

KLCI -13.10 points.......Careful now!!

I will have a nice weekend & hope so do you all, folks!!!

AA's proposed budget airline in India will face cut-throat competition existing airlines like IndiGo and SpiceJet.

In its newly published report said that IndiGo and SpiceJet control more than 50 per cent capacity share from Chennai, and have network strategies similar to that of AA.

Malaysian-based AA has said that it would link tier II and tier III cities in India, where price is a major concern. The airline also said that it would try to open up new markets where there is currently no connectivity.

In this strategy, the new venture will face competition from IndiGo and also SpiceJet, both of which have network strategies which cover these markets."

SpiceJet is currently the biggest operator in India from Chennai, with nearly 30 per cent capacity share. IndiGo and Air India have domestic capacity shares of 21 per cent and 17 per cent, respectively.

There you go, folks!

With the upcoming launch of Malindo, now is the time to again pursue growth in Malaysia.

The 10 A320s being added to AA Malaysia’s fleet in 2013 will be used to “dominate” domestic trunk routes as frequencies are increased. The carrier says capacity will in particular be added on domestic routes to East Malaysia and Johor Bahru.

Some new international routes will also be added in a bid to further improve international connectivity.

But the focus will be on maintaining AA's leading position in Malaysia’s domestic market, where it currently accounts for 52% of seat capacity.

Given the relative small size of the Malaysian market, the extra capacity will likely come at the expense of yields.

AA Malaysia is confident it can grow its load factor to 85%, compared to 80% in 2012. Really?

Higher loads and a renewed focus on ancillaries, which dropped by 11% in 2012 on a per passenger basis, could potentially help offset a reduction in yields brought on by a fare war.

But with Lion breaking the cosy AA-MAS duopoly in Malaysia’s domestic market it will be challenging for AA Malaysia to MAINTAIN its extremely HIGH PROFIT margins.

So how now, folks? Heheheheheheheh!!

In 2013 AA faces new competitor in Malaysia, prompting acceleration of growth. In Malaysia, the group notes that with RM2.3 billion in cash in the bank it has the “strength to compete with all competitors”.

Growth in Malaysia has taken a back seat in recent years as the focus has shifted more to Indonesia and Thailand to prepare the group’s second and third affiliates for IPOs.

Passenger traffic at AA Malaysia only grew by 9% in 2012 to 19.7 million while Thai AA saw 21% growth to 8.3 million and Indonesia AirAsia saw 17% growth to 5.8 million.

Folks, Tune Group has acquired a total of 44,080,000 units at an average price of 2.904 costing Rm128 million from 15 Oct 2012 till 29/01/2013.

So after the ex-dividen, Tune Group new average price will only cost Rm2.724 per share.

Amazing & creative way to cover back losses!! What about you gals & guys? With the special dividen of 0.18sen are you able to profit from it at the current price? Hahahahahahahahah!!

The AA group has also pointed out that the launch of agency sales in Japan should boost load factors in 1Q2013.

It claims AA Japan is already performing well in the international market, where it “dominates” Japan-Korea routes, and says more international routes will be launched in 2013 as the fleet is expanded.

However, the group is proceeding relatively cautiously in Japan. Growth of four aircraft in a LCC’s second year of operation is modest, particularly given the size of the Japanese market.

AA Group CEO Tony Fernandes stated in the group’s 26-Feb earnings announcement: “The main focus for the next few years will still be the core markets – Malaysia, Thailand and Indonesia. Then grow Japan and Philippines in a way it will be profitable.”

In business you're never going to be right ten times out of ten with an exception for TF?

Only time will tell!! Hahahahahahahahahaaaa!!

Investors have short memories!! Wakakakakakakkak!!

Folks, much has been written about the success of Warren Buffett, but little on his failures.

Buffett purchased preferred shares in US Airways (NYSE:LCC) in the early 1990′s, and later remarked that this was one of his biggest mistakes.

Buffett failed to enforce his own rules of selection and got wrapped up in a bad decision. As he put it:

“I liked and admired Ed Colodny, the company’s then-CEO, and I still do. But my analysis of USAir’s business was both superficial and wrong.

I was so beguiled by the company’s long history of profitable operations, and by the protection that ownership of a senior security seemingly offered me, that I overlooked the crucial point: USAir’s revenues would increasingly feel the effects of an unregulated, fiercely-competitive market whereas its cost structure was a holdover from the days when regulation protected profits.

These costs, if left unchecked, portended disaster, however reassuring the airline’s past record might be.”

- 1996 Letter to Shareholders, Warren Buffett

In business if you're good, you're right six times out of ten. You're never going to be right nine times out of ten! Heheheheheh!!

The AA Group is optimistic the new management team in Japan can right the ship.

The group is particularly bullish on the second AA Japan hub at Nagoya, which will open in late Mar-2013 with two domestic routes.

The Nagoya hub is made possible as the carrier takes its fourth aircraft in Mar-2013.

The group has stated that the opening of the Nagoya hub will boost average aircraft utilisation rates and reduce costs as the Nagoya airport, unlike AA Japan’s Tokyo Narita base, is open 24 hours per day.

Well folks, only time will tell!

AA Philippines off to rough start and worst still AA Japan also off to a rough start.

AA also has had its share of challenges at AA Japan since the carrier launched in Aug-2012. As reported, AirAsia Japan’s load factors dropped below 60% in Oct-2012 and Nov-2012 and to around 10ppt below rival Jetstar Japan despite the two carriers having similar networks.

AA Japan also has reportedly suffered from poor on-time performance rates. In Dec-2012, the carrier’s initial CEO, Kazuyuki Iwakata, resigned.

But the problems in Japan can be more easily resolved than the Philippines.

The larger Japanese market is now only being penetrated by LCCs for the first time while in the Philippines Cebu Pacific has been operating as a LCC for over a decade, giving it a massive first mover advantage.

There you go, folks!