In hindsight, establishing a Philippine affiliate was probably not the smartest move.

But the decision was made before an opportunity to join with All Nippon Airways in Japan surfaced and long before India’s airline sector opened up to foreign investment.

The AA Group did not necessarily need a fourth affiliate in Southeast Asia, particularly in such a highly competitive and challenging market as the Philippines.

AA will try to ride out the storm, hoping consolidation will occur, leading to an improvement in market conditions.

In the meantime folks, the group will retain a very small presence in the market in a bid to minimise losses while it invests more heavily in bigger and more promising markets.

Remember folks, 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! Hahahahahah!!

AA Philippines’ lack of slots at Manila, where its four LCC competitors all operate, puts the carrier at a competitive disadvantage.

The AA Group noted within its results announcement for 2012 that Clark’s airport authority will commence shuttle bus services from Manila, improving connectivity from the city centre.

But it is unclear if passengers will be swayed to take a bus through Manila’s notoriously bad traffic when there are generally low fare flights available from Manila International.

AA Philippines has quickly discovered it is difficult to serve the domestic market from Clark.

International services can potentially work with the right low fare stimulation. But there are not many potential international markets to serve given the tensions with mainland China and the fact the two other key North Asia markets – Philippines-South Korea and Philippines-Japan – are currently not open to additional Philippine carriers.

Southeast Asia is open but AA already has affiliates in three other Southeast Asian countries, making the new Philippine operation unnecessary except in the Philippines-Singapore market.

But folks, the Philippines-Singapore market is already served by several LCCs, making it tough for AA to carve out a profitable niche.

So how now?

Latest on MAJOR SHAREHOLDERS

As of 11/03/2013 - TUNE: 710,931,282 units 25.57%

As at 25/09/2012 - EPF: 273,585,900 units 9.84%
As of 11/03/2013 - EPF: 230,308,000 units 8.28% (latest)

As at 23/01/2013 - WELLINGTON: 324,591,988 units 11.68%
As of 11/03/2013 - WELLINGTON: 270,328,756 units 09.72%

Folks as per the announcement to Bursa, EPF disposed 2 million shares after the ex-date for special dividen. More announcement to come for the coming weeks?

Well folks, only time will tell! Careful now!

Have a nice day, folks!

News on AA India

A senior official of the ministry indicated that he was hopeful about his counterparts in commerce and finance ministries issuing the required clarification and that it should have come along with minutes of the FIPB meeting which happened exactly two weeks back.

“We will get this clarification anyhow. But the question now is: where is Tony Fernandes or his people representing AA India? No one has been in touch with us, how are we supposed to process anything unless an application is filed,” - The civil aviation ministry officials

AA Philippines’ lack of slots at Manila, where its four LCC competitors all operate, puts the carrier at a competitive disadvantage.

AA Group noted within its results announcement for 2012 that Clark’s airport authority will commence shuttle bus services from Manila, improving connectivity from the city centre.

But it is unclear if passengers will be swayed to take a bus through Manila’s notoriously bad traffic when there are generally low fare flights available from Manila International.So how now, folks!!

The AA Group has said the Philippines affiliate will focus more on China markets and regional connectivity as it tries to improve profitability.

The Clark-Taipei route, launched in Dec-2012, has been successful and has already been boosted from four to seven weekly flights.

But the carrier has already struggled in other markets in greater China, pulling off the Clark-Macau route.

AA Philippines is keen to open new routes to mainland China but this is unlikely to occur until tensions between China and the Philippines ease.

Investors have short memories, folks!! Do you? Hahahahahahahahah!!!

The Philippine domestic market is particularly challenging with five LCCs competing, leading to over-capacity and irrational competition.

The LCC penetration rate in the Philippines domestic market is currently 85% with AA Philippines accounting for only 1% of domestic capacity within the country.

AA Philippines is now focusing more on the international market, with flights from its base at Manila alternative airport Clark, to Hong Kong, Kuala Lumpur, Singapore and Taipei. Its domestic network has been reduced to just 11 weekly flights and two destinations – Davao and Kalibo. So how now, folks?

The continued losses in the Philippines are particularly concerning as the carrier has now been operating almost one year. The carrier still only operates two A320s and has not yet been allocated a single additional aircraft from AA Group’s 2013 deliveries.

AA Philippines could still add aircraft in 2013 by taking aircraft directly from leasing companies but the AA Group is clearly taking a very conservative approach to expansion in the competitive Philippine market.

Remember folks, in the business world, the rearview mirror is always clearer than the windshield.

Another worrying issues AA Philippines and AA Japan are still in the red and are unlikely to become profitable in the near term.

AA Philippines recorded a net loss of MYR93 million (USD30 million) for 2012, including MYR23 million (USD7 million) for 4Q2012.

AA Japan recorded a net loss of MYR97 (USD31 million) million for 2012, including MYR40 million (USD13 million) for 4Q2012.

Remember folks, AA Group owns 40% of AA Philippines and 49% of AA Japan.

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! Hahahahahah!!

Folks, currently the AA(G) operates 120 A320s, including 115 from its orders and five from leasing companies, and has another 360 A320s on outstanding order.

The 360 figure includes 30 A320s for delivery over the last 10 months of 2013. AA has already taken two aircraft this year (one each for AA Malaysia and Thai AA) and is slated take two more aircraft before the end of 1Q2013 (one for Japan and one more for Malaysia).

Once again AirAsia’s original business in Malaysia was the stellar performer in 2012. But now with Malindo in the picture, could Malindo chip away some of AirAsia’s market share? Careful now!!!

Rm0.68 ->3hrs-> Rm1.28 ->17days-> Rm0.34 ->1day-> Rm0.44 -> Rm???

CAP - Con All People?

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

So folks, 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!!!!!!!

Well tonylim, luckily its not aircraft technical problem. Anyway it could be Clear-air turbulence (CAT). CAT is the turbulent movement of air masses in the absence of any visual cues such as clouds, and is caused when bodies of air moving at widely different speeds meet.

CAT is usually impossible to detect with the naked eye and very difficult to detect with conventional radar.

Because aircraft move so quickly, they can experience sudden unexpected accelerations or 'bumps' from turbulence.

Well tonylim, as the only LCC in Malaysia so far so good for me. As a consumer, another LCC is not harm. Adios bro!

Comparing Malindo Airways with AA and MAS, Research analysts noted that AA flies 14 times daily on the KL-KK route while MAS flies 11 times daily.

On the other hand, the KL-Kuching route saw AA and MAS fly 14 times and seven times daily respectively.

For AA, on a profitability level, assuming an average yield of 26 sen per revenue passenger kilometre (RPK), a load factor of 70 per cent and a cost, of 11.58 sen per ASK, the analyst believed that both routes would fetch a total revenue of RM873 million and earnings before interest, tax, depreciation, amortisation and restructuring or rent costs (EBITDAR) of RM319.7 million in financial year 2013 (FY13).

Wowwwww, the figures above would account for 16% and 18% of AA’s FY13 revenue and EBITDAR respectively – possibly representing one of the biggest route earnings contributors.

But with Malindo Air in the picture soon, estimated a base scenario would see yields from these two routes compressing by 15 per cent and loads at 67 per cent given Malindo’s small fleet size, which would see its EBITDAR from these two routes dropping to RM185 million.

Bear in mind folks, Malindo will kickstart operations with two aircraft by flying to Kuching four times daily and Kota Kinabalu three times daily from Kuala Lumpur.

Remember folks, that is only with 2 aircraft!! Happy investing & have a nice day, folks!!!

Source : Icao, civil aviation safety advisory committee

•Nearly 300 people have lost their lives in air accidents in India between Icao’s 2006 safety audit of India and December 2012

•As many as 158 people died in the 2010 Air India Express IX-812 crash in Mangalore

•One plane each of Jet Airways, Air Deccan and Kingfisher Airlines has been written off in accidents since 2006

•Two state chief ministers—Andhra Pradesh’s Y.S. Rajasekhara Reddy and Dorjee Khandu of Arunachal Pradesh—have died in helicopter crashes since the 2006 audit, among many other smaller crashes

•Icao says it has concerns over India’s ability to oversee the safety of airlines and aircraft under its jurisdiction

•India has been red-flagged on safety and clubbed by Icao with 13 nations—Angola, Congo, Djibouti, Eritrea, Guinea, Guinea-Bissau, Haiti, Kazakhstan, Lebanon, Lesotho, Malawi, and Sao Tome and Principe

•None of India’s neighbours—Pakistan, Bangladesh, Nepal, Sri Lanka or the Maldives—has been red-flagged

There you go, folks!

As at 23/01/2013 - WELLINGTON: 324,591,988 units 11.68%
As of 12/03/2013 - WELLINGTON: 270,328,756 units 09.72% (latest)

As at 26/01/2012 - GENESIS: 146,029,781 5.26%
As of 31/01/2012 - GENESIS: Cease as substantial Sahreholder (latest).

Folks, GENESIS dated 31/01/12 has ceased to be a substantial shareholder with less the 4.98% (140 million shares) in their portfolio. Interestingly how long will it take for GENESIS to dispose all the remaining shares of AA? From Rm4.00 -> down -> down -> till Rm2.57 for the 1st round? What about the 2nd round of selling?? When?

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

Remember folks, 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?

Well folks, only time will tell!!! Heheheheheheheh!!!

"It’s a very damaging statement,” Keelor a former chief of the Indian Air Force and a former aviation regulator said, adding that DGCA has failed in its primary obligation to provide safe passenger travel.

“Icao has made this remark because they (DGCA) have not been able to justify that they have been able to do their job,” he said.

Keelor said the main reason for this is that DGCA is being run by bureaucrats and not experts such as pilots.

“The government is not serious about flight safety. Many DGCA officers are completely compromised.

The first thing they do is ground the pilot (in case of an accident),” Keelor said. “You have to prevent accidents and incidents, and not cure them.”

Again folks.....goodness sakesssssss!!!!!!!! Wakakakakakakakakakakak!!!

Folks, the record of charter aircraft has been worse. Arunachal Pradesh chief minister Dorjee Khandu was killed with four others after when a Eurocopter B8 Pawan Hans helicopter crashed in bad weather in May 2011.

Andhra Pradesh chief minister Y.S. Rajasekhara Reddy died when his state government-owned Bell 430 helicopter crashed in a dense forest while flying to a village in Chitoor district in September 2009.

Ten people, including seven on board a medical ambulance aircraft of Air Charter Services India Pvt. Ltd, were killed when the flight to Delhi from Patna crashed into the roof of the two houses near the national capital in 2011.

The findings of the audit are alarming, according to Denzil Keelor, a former chief of the Indian Air Force and a former aviation regulator.

ALARMING??????? Oh my goodnesssssssssssssss!!!!!!! Hahahahahahahah!!

Folks, India has a patchy air safety record in recent years. Nearly 300 people have lost their lives between Icao’s 2006 audit and the latest one completed in December. It conducts these audits every six years.

Still remember folks, how as many as 158 people died in India’s worst air crash in a decade in Mangalore in 2010 when an Air India Express flight IX-812 overshot a hilltop runway, charring people to death, including women and children, because rescue did not reach them in time.

Hmmmmmmmmmmmmmmmmmm.......make you think!!!

Folks, Icao has identified a significant safety concern with respect to the ability of this state (India) to properly oversee aircraft under its jurisdiction.

Remember folks, this is not the first time Icao has raised such red flags. In its earlier audit in 2006, the organization had warned about air safety oversight in India, after which the US aviation regulator threatened to downgrade India’s safety ranking, a move that would have stopped Indian carriers such as Air India and Jet Airways (India)from adding additional flights to the US and forcing extra ramp checks on aircraft at US airports.

Folks, back then the matter was taken up by the two governments and resolved! Hmmmmmmmmmmmmmm!!! Go! Go! AA!!

Folks, in the latest report The International Civil Aviation Organization (Icao) of which India is a member, identified a significant safety concern with respect of the ability of this state (India) to properly oversee its airlines (air operators) under is jurisdiction.

The organization has clubbed India with Angola, Congo, Djibouti, Eritrea, Guinea, Guinea-Bissau, Haiti, Kazakhstan, Lebanon, Lesotho, Malawi, and Sao Tome and Principe.

So how now, folks? Heheheheheheheheh!!!

The United Nations (UN) aviation watchdog has expressed grave concerns on India’s air safety, placing it among the 13 worst-performing nations on this count, according to excerpts of an audit report.

Hahahahahahahahahah!!!

MAJOR SHAREHOLDERS

As of 12/03/2013 - TUNE: 710,931,282 units 25.57% (latest)

As at 25/09/2012 - EPF: 273,585,900 units 9.84%
As of 12/03/2013 - EPF: 226,372,700 units 8.21% (latest)

As at 23/01/2013 - WELLINGTON: 324,591,988 units 11.68%
As of 12/03/2013 - WELLINGTON: 270,328,756 units 09.72% (latest)

As at 26/01/2012 - GENESIS: 146,029,781 5.26%
As of 31/01/2012 - GENESIS: Cease as substantial Sahreholder (latest).

Folks, how long would GENESIS take to dispose the remaining shares (140 million)? Bear in mind folks, WELLINGTON which has ceased to be a Substantial Shareholder back then, is back with 270 million shares. As per announcement to Bursa, WELLINGTON seem to have reduced their portfolio as stated above.

Ever wonder why, folks? Still remember Bank of America Merril Lynch TP, folks? Don't worry folks as Tune will buy more to support the price but until when folks? Hahahahahahahahhahah!!

Folks, currently the AA Group operates 120 A320s, including 115 from its orders and five from leasing companies, and has another 360 A320s on outstanding order.

The 360 figure includes 30 A320s for delivery over the last 10 months of 2013. AA has already taken two aircraft this year (one each for AirAsia Malaysia and Thai AirAsia) and is slated take two more aircraft before the end of 1Q2013 (one for Japan and one more for Malaysia).

What? 360 A320 yet to be delivered? Hmmmmmmmmmmmmmmmmm!!!!!!!

Folks, the result will be a significant increase in capacity for AA within Southeast Asia, a market which already has a LCC penetration rate exceeding 50%.

AA is trying to tighten its grip on this market and fend off rapidly expanding competitors, particularly Lion.

AA and Lion both control about 30% of LCC capacity within ASEAN. But there is a risk of over-capacity and irrational competition on several routes. So how now, folks?? Heheheheheheheh!!

AA will take a record 25 aircraft in 2013 for a total of 138 A320s, representing 22% fleet growth.

AA Malaysia is slated to grow its fleet in 2013 from 64 to 74 A320s as the carrier adds domestic capacity ahead of the planned late Mar-2013 launch of Malindo, which will become the second LCC in the Malaysian market.

AA Indonesia plans to grow its fleet from 22 to 30 A320s as it tries to establish a bigger presence in the crowded Indonesian domestic market, which is dominated by rival Lion.

Thai AA will take seven A320s in 2013 for a total of 34, with the additional aircraft being used primarily to increase domestic capacity as competition intensifies with Thai Airways and its LCC affiliate Nok Air.

You can never predict when that unknown torpedo will come out of the dark and smash the price of a stock! Hahahahahahhahah!!

Airlines in India have a fare war even without Airasia. AA pricing will be totally dependent on their cost structure.

AA will try its level best to focus on the fundamentals of their business model like closer to 14 hours plus utilisation, high labour productivity, very low distribution cost and big on ancillaries.

All these are challenging at present. Plus, Indian domestic market is very competitive and often not rational which will test AA.

As such other Indian carriers will further strengthen their network from Chennai before launch of AA's domestic service.

Folks, it will be interesting to see how AA deals with the regulatory framework and excessive government intervention especially on key commercial issues like fares and ancillaries.

Hahahahahahahahah!!!!!!!!

An another aspect where AA differs from airlines in India is its stress on ancillary revenue.

It sells tickets at rock bottom prices but charges for virtually all services - onboard meals, entertainment, preferred seats, pillows, baggage and so on.

Full service airlines give a preferential treatment to their executive class passengers whereas AA does the same at a charge.

Known as AA Red Carpet it offers passengers special check in counters, priority baggage delivery and use of lounge for a fee.

In 2011, 18% of AA's revenue came from ancillary sources. Willl AA's business model face a challenge in India? Well folks, only time will tell!!

So folks, how does the airline keeps its cost under control?

About 85% of AA tickets are sold through its website limiting agents' commission (In India about 70-80% of tickets are sold through offline agents and portals). In Kuala Lumpur and Bangkok AA flies to low cost terminals (there are none in India).

AA get rebate in landing and parking charges at Bangkok. Other aspects of cost optimisation include higher aircraft utilisation (12-14 hours daily), lower turn around time (25-30 minutes), use of dedicated kiosks for passenger check-in reducing the manpower requirement.

Folks, AA's unit costs are significantly lower than Indian carriers due to use of low cost terminals, lower distribution costs, single aircraft type operation and higher aircraft utilisation amongst others. Unit costs or cost per available seat kilometre (CASK) refers to expenses incurred on flying a seat (filled or empty) over a kilometre.

A J P Morgan report shows AirAsia's CASK is (4.4 cents) is lower than SpiceJet (6.4 cents), JetLite (7.5 cents) and Jet Airways (9 cents). AirAsia claims that its CASK (along with Ryan Air) is the lowest amongst all airlines. One of the reasons for low operating costs is that aviation fuel is not taxed in Malaysia.

Can AA India mantain CASK at 4.4 cents? Folks, in the business world, the rearview mirror is always clearer than the windshield. Heheheheheheh!!

MAJOR SHAREHOLDERS OF AIRASIA

As of 09/03/2013 - TUNE: 710,931,282 units 25.57% (latest)

As at 25/09/2012 - EPF: 273,585,900 units 9.84%
As of 06/03/2013 - EPF: 226,372,700 units 8.21% (latest)

As at 23/01/2013 - WELLINGTON: 324,591,988 units 11.68%
As of 07/03/2013 - WELLINGTON: 270,328,756 units 09.72% (latest)

As at 26/01/2012 - GENESIS: 146,029,781 5.26%
As of 31/01/2012 - GENESIS: Notice of Person Ceasing (29C) as substantial Securities Holder (latest).

Folks, could GENESIS be one of the active foreign seller in the market?

Another important thing to note folks, on 26/5/2011 WELLINGTON ceases to be a Substantial Shareholder. Imagine folks, if WELLINGTON with 270,328,756 of shares leaving again?

But why Bank of America Merrill Lynch, saying it is keeping its NEGATIVE stance on Airasia ahead of the general elections with a price objective of RM1.85? Could this be a sign that foreigners are not only slowly but surely selling?

Will history repeat itself? Well folks, only time will tell!! Hahahahah!!

Folks, what seems low and cheap generally goes lower. Tomorrow even cheaper!!

Remember folks, foreign & local funds are not only selling slowly but surely to maximize their gains!! Dare to catch the falling knives?

Have a nice day, folks!! Heheheheheheheheheh!!

Malindo Air is a new airline meaning safety record is 100% accident free & that is why EXIM BANK (US) willing to provide 2 billion dollar financing!

Can you dig that!! Wakakakakakakakakak!!!

http://airasiaannus.blogspot.com/2008/09/air-asia-convice-us-theyre-unsafe.html

http://airasiaannus.blogspot.com/2009/09/airasia-safety-part-2.html

Bullish stocks are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria.

The time of maximum pessimism is the best time to buy, and the time of maximum optimism (JV, share-swap deal, special dividen, interim dividen, fat profit due to one time gain, etc)is the best time to sell.

Which one you are, folks? Hahahahahahahah!!

1. Malindo Air will provide a hybrid service (Hybrid is an airline service concept which combine together both LCC and Premium service).

2. Malindo Air will take off earlier from the original schedule in mid-March with 12 Boeing 737-900ER with 12-business class seats and 168 economy seats with the In-Flight Entertainment and Wi-Fi.

3. Number of domestic flights destination in Malaysia will increase from time to time.

4. Boeing 787 will be introduced in 2015.

5. Ticket fare and the services is aimed to be on par if not lower that Air Asia.

6. By using the slogan “Not Just Low Cost”, Malindo sure needs a pack of punch to break the AirAsia monopoly on the Malaysia market.

7. It is believed that Malindo Airways is eyeing primarily Airasia’s on the lucrative domestic market in Malaysia which is primarily on the east coast of the Malaysia that is Sabah and Sarawak.

8. Theoretically Malindo Airways for being a new entrant in Malaysia will go all out for market share at the expense of profits by undercutting prices.

9. AirAsia also on the other hand, may also want nip the competition in the bud by dropping fares. This will result in a full-scale price war.

Folks, will AA or Malindo Air be the winner? Noooppppppeeeeeee!! The winner will be you, me, consumers & MAHB!!! Hahahahahahahahahahah!!!

1. Most air travellers in East Malaysia has not stopped fuming over the termination of service by Fireflys Airline in late 2011.

2. This short haul full service Malaysia Airlines subsidiary was doing well when it suddenly cancelled its operation following the (now defunct) share swap deal between MAS and Air Asia in later part of 2011.

3. At least there was a choice that East Malaysian had whether to fly with Firefly or Air Asia.

4. Many, in fact, had preferred the former(fireflyz) because of its apparent friendlier service.

5. Here come the new Low Cost Carrier which promotes itself as a hybrid airline would complement the local aviation industry ecosystem in addition to winning the rapid growth potential of the Asian market.

6. Malindo Air, the new domestic low-cost carrier will start their operation on 1st May 2013 from the new KLIA2 terminal and will operate flights between Malaysia and Indonesia initially.

7. However, Malindo Air has brought forward the launch date to mid-March 2013 and will begin with domestic flights: Kuala Lumpur to Kota Kinabalu & Kuching.

8. A new hybrid airline offers low air fares with additional services is set to takeoff its first flight on 22 March 2013 after its success in getting the AOC from Department of Civil Aviation (DCA), Malaysia last month.

9. This will mark the second low-cost carrier in Malaysia which offer additional service with affordable fares. This brand new airline will be operating Boeing 737-900ER.

There you go, folks!!

Philippines AA (PAA) has forged a share-swap deal with Filipino businessman Alfredo Yao, a major shareholder of Zest Airways Inc and Asiawide Airways Inc, to tap each other's domestic and international network strength.

In the strategic alliance agreement, PAA intends to invest in the Zest Air Group by acquiring a 49 per cent stake in Zest Airways and 100 per cent of Asiawide Airways, and, in turn, Yao will subscribe to shares in PAA. The deal is still subject to various regulatory approvals. To further strengthen this partnership, the shareholders of PAA will infuse funds to augment working capital.

Remember folks, AA Group continue to incur losses at the two affiliates it launched during 2012, in the Philippines and Japan, and will incur start-up costs for its new joint venture in India.

With this deal, would PAA losing streak end? Will there be light at the end of the tunnel for PAA FY2013? Only time will tell, folks!

AA which said it will operate in tier II and tier III cities of India from Chennai, maybe forced to look at new routes as existing tier II routes from Tamil Nadu's capital already has stiff competition.

However, among the top 20 tier II airports in India, seven have no connection to Chennai and they together handle 11.48 million passengers or 17% of India's total air passengers.

While flying to tier II cities, AA would have to keep in mind the cities that have airports to handle Airbus A320 airports.

Destinations such as Jaipur and Srinagar are popular tourist destinations, which are not connected to Chennai. The two cities have airports capable of handling A320s and combined handled 3.45 million passengers in 2012.

There you go, folks! Happy Investing!!

Folks, massive aircraft order & competition may force Airasia to scout for new routes. Remember folks, AA will take a record 25 aircraft in 2013 for a total of 138 A320s, representing 22% fleet growth.

Will the revenue increase by 22% while the operating expenses remain managable? Well folks, in the business world, the rearview mirror is always clearer than the windshield.

Hahahahahahaha!!

Folks, Airasia faces bureaucracy costs with JV in India. AA will also have to contend with the nation’s bureaucracy that interferes with pricing of tickets.

Airlines in India have been losing money even after passenger traffic more than doubled in the past seven years.

The airline may struggle to post profits in India as high fuel taxes, airport costs and cut-rate competition erode gains from rising travel demand.

Jet fuel, which accounts for about half of a carrier’s expenses, costs as much as 60 percent more in India compared with Singapore.

Carriers’ airport costs are also rising in the nation as the airports regulator last year approved a 346 percent increase in charges at New Delhi airport.

Over the past seven years, IndiGo has grown to become the India largest airline by market share. Rahul Bhatia, its founder, has scooped up passengers from full-service airlines like Jet Airways, Kingfisher and Air India by employing classical low-cost airline tactics.

Keeping ticket prices low, focusing on delivering a reliable performance, reducing turnaround times and charging for even a sandwich. But for most part, Bhatia has concentrated on competing in the key truck routes that make up much of the existing passenger traffic.

Fernandes, on the other hand, says he will focus on getting new passengers and opening new markets. India, he reckons, is a ‘monster of an opportunity’!

Folkks, the last time that a player tried a similar strategy in the Indian skies, it met with disastrous results. Air Deccan stormed the Indian skies with its low-cost model, promoting online booking and a no-frills service. The main reason why Captain GR Gopinath faltered badly was that he spread too wide, too quickly!!

So folks, will AA India be any difference! Thailand is one of the world most famous tourists destination & India is NOT!! Careful now!!

Wakakakakakakakak!!

Slight hiccup to AirAsia-Tata deal seen???????

Read nore here folks: http://www.btimes.com.my/Current_News/BTIMES/articles/20130312110801/Article/index_html

Any foreign investor entering the Indian civil aviation market will know the unwritten rule before making any public announcement of his intent:

Always seek the blessings of the ministry beforehand. Jet Airways chairman Naresh Goyal and Etihad CEO James Hogan, both well-versed in the workings of the Indian system, did just that before their planned equity link-up.

In late January, they did the rounds of the corridors of power—meeting not only the civil aviation minister Ajit Singh, but also the finance minister and the minister for trade and commerce for good measure.

On the other hand, Tony Fernandes, the feisty owner of AirAsia, has never believed in sticking to established rules.

His stated philosophy has been about controlled anarchy or unleashing the full creative energies of all his employees.

The Indian establishment seldom takes kindly to an iconoclast. But one thing is clear: None of his rivals are likely to underestimate Fernandes and his latest venture, AirAsia India.

Most experts reckon that his entry into the Indian civil aviation market could shake up the established order.

So folks, will Airasia be successful like Airasia Thai? Remember folks, Thailand is one of the world most famous tourists destination!!

Major Shareholders As At 26/02/13

1. TUNE AIR SDN BHD: 25.5%
2. WELLINGTON MANAGEMENT: 10.6%
3. EMPLOYEES PROVIDENT: 7.8%
4. CAPITAL GROUP COMPANY: 7.3%
5. GENESIS SMALLER COMP: 5.3:

Latest disposal by: WELLINGTON MANAGEMENT (foreign)

Disposed: 05/03/2013 5,194,600 units
Disposed: 06/03/2013 9,976,915 units
Disposed: 09/03/2013 3,996,100 units

As at 09/03/2013 - Total held by EPF: 221,612,800 = 7.97%
As at 25/09/2012 - Total held by EPF: 273,585,900 units = 9.84%

As at 09/03/2013 - Total held by Tune: 710,931,282 units = 25.57%
As at 24/09/2012 - Total held by Tune: 642,901,282 units = 23.14%

Careful folks, as 48.29% of shares were held by foreigners! A report by 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 will put pressure to the price!

Latest on Share Price Performance: 09/03/2013

01 Month : High 3.000 (08-Mar-13) / Low 2.570 (21-Feb-13)
03 Months: High 3.000 (08-Mar-12) / Low 2.490 (21-Dec-12)
12 Months: High 3.850 (06-Jul-12) / Low 2.490 (21-Dec-12)

All time High: Rm4.00

Folks, don't forget to adjust the prices as stated above. So for the 1 month price performance:- High 2.82 / Low 2.39.

If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes. Hehehehehehe!!

Investors have short memories!!

Rm1.28 -> Rm0.34!!

Bull Trap?
- a false signal indicating that a declining trend in a stock or index has reversed and is heading upwards when, in fact, the security will continue to decline.

Sucker Rally or Dead Cat Bounce?
- a temporary rise in a specific stock. A sucker rally occurs with little fundamental information to back the movement in price. This rally may continue just long enough for the "suckers" to get on board, after which the market or specific stock falls.

Technical Rally?
- an upward movement in a security's price following a declining trend. The movement is caused by technical as opposed to fundamental factors affecting sentiment.

Hahahahahahhahahah!! Only time will tell!!

Folks, AA plans to focus growth in 2013 at the three affiliates which are profitable – AA Malaysia, Thai AA and Indonesia AA. This established trio of LCCs, all of which are now at least seven years old, will take a RECORD 25 aircraft in 2013 for a total of 138 A320s, representing 22% fleet growth.

AA Philippines, AA Japan and AA India are only expected to take about seven A320s in 2013, a SURPRISINGLY small figure for the Philippine and Japanese affiliates given they have not yet reached initial economies of scale.

If you are not willing to own a stock for 10 years, do not even think about owning it for 10 minutes!!! Hahahahahahahah!!

Folks, AA faces a potentially challenging FY2013 as it accelerates expansion in its three core markets as part of an attempt to fight off intensifying competition within Southeast Asia.

The group will continue to incur losses at the two affiliates it launched during 2012, in the Philippines and Japan, and will incur start-up costs for its new joint venture in India.

Folks, investors learn nothing and forget everything! Stocks are designed to allow individuals (maybe major shareholder) to look after their private needs and to pursue profit. It's really a great invention and I wouldn't under-estimate the value of that, but they're not designed to take care of social needs. Heheheheheheh!!

Rm3.00 - 0.18 = Rm2.82

Heavy selling after 10am? Only time will tell!! Wakakakakakaka!!!