SINGAPORE (BLOOMBERG, AFP) - Airlines added more seats back to their flight schedules this week, led by China and even increases in Hong Kong, suggesting the industry is starting to recover from the devastating impact of the coronavirus pandemic, according to OAG Aviation Worldwide.

Airlines globally added a net 600,000 seats to reach a total of almost 30 million, up about 2 per cent from the previous week, OAG senior analyst John Grant wrote in a report. That's still a long way off the weekly capacity of about 110 million seats this time last year, but it is an encouraging sign nonetheless.

North-east Asia is a bright spot. China added one million seats to schedules this week, including 800,000 on domestic routes, and is now operating twice as many seats as the US. Meanwhile, Hong Kong's Cathay Pacific Airways added 40,000 seats and increased frequency by some 120 flights, Grant said.


"China's domestic capacity stands at 75 per cent of January's level, the United States at 27 per cent and Russia at 49 per cent of pre Covid-19 levels," he said. "For anyone interested the UK level is now some 4 per cent!"

Some markets are still on a downtrend as travel restrictions are kept in place to contain the coronavirus, which has infected more than four million people and killed nearly 290,000.

Seat capacity on South Asian airlines dropped 14 per cent this week and is 72 per cent lower than in January, but it could bounce back as India considers restarting flights following a nationwide lockdown, Grant said.

Separately, Irish low-cost carrier Ryanair on Tuesday announced it will restore 40 per cent of flights from July 1, after running a skeleton service since mid-March as the coronavirus pandemic grounded planes worldwide.

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"Ryanair will operate a daily flight schedule of almost 1,000 flights, restoring 90 per cent of its pre-Covid-19 route network," it said in a statement.

Crew and passengers will wear face masks and have to pass temperature checks, it added.

Financial scandals are pandemic too | https://www.klsescreener.com/v2/news/view/700823

Commenting on capital management, internally said Fernandes, the group has embarked on headcount rationalisation for leaner operations, given the current demand for air travel and expectations on recovery, with internal cost-cutting efforts to include a group-wide temporary salary reduction of between 15 per cent and 75 per cent.

“We have received deferrals from our supportive lessors and are now working on further extensions. We have also restructured 70 per cent of our fuel hedging contracts and are continuously negotiating with our supportive counterparties for the remaining exposure.”

“All in all, we expect at least 50 per cent reduction in our cash expenses in 2020,” he said.

While the first half of the year has been extremely challenging, Fernandes said countries around the world have resumed domestic travel in recent weeks and are gradually reopening international borders.

In this regard he said, the formation and discussion of “travel bubbles” and “green lanes” with key economic partners with a low infection rate and proven pandemic curbing systems, is a step in the right direction.

AirAsia has also resumed its domestic operations in markets such as Malaysia, Thailand, Indonesia, India and the Philippines on a staggered yet steady basis since late May.

“On July 7, we registered our highest post-hibernation sale with 75,000 seats sold in a single day, reflecting pent-up demand and signalling green shoots of recovery. We also sold over 200,000 AirAsia Unlimited Passes since its recent launch for domestic Malaysia, domestic Thailand and AirAsia X.

“Positive trends in our flight bookings and load factors are additional signals of a better second half of the year,” he said.

FILE PHOTO: AirAsia planes sit on the tarmac at Kuala Lumpur International Airport
AirAsia planes sit on the tarmac at Kuala Lumpur International Airport, Malaysia Aug 28, 2016. (Photo: Reuters/Edgar Su/File Photo)
In June, the group-wide load factor was 60 per cent with AirAsia Malaysia’s load factor reaching 65 per cent, and it expects the load factor to reach 70 per cent for July.

On the outlook, Fernandes remained confident in the growth potential of the ASEAN region, in line with ASEAN-5’s gross domestic product growth forecast of 6.2 per cent in 2021, which is one of the highest growth rates in the world.

“We are confident that AirAsia will not only benefit from this growth upturn but also contribute to the region’s recovery given the significant role that air connectivity plays in ASEAN’s trade and investment landscape,” he added.

Business
AirAsia to emerge stronger from COVID-19 pandemic: Tony Fernandes
AirAsia boss Tony Fernandes told AFP the top budget carrier would emerge 'stronger' from
AirAsia boss Tony Fernandes told AFP the top budget carrier would emerge 'stronger' from the coronavirus pandemic despite a warning about its future AFP/Mohd RASFAN
09 Jul 2020 10:47PM (Updated: 09 Jul 2020 10:53PM)




Bookmark

KUALA LUMPUR: AirAsia boss Tony Fernandes said on Thursday (Jul 9) the budget carrier would emerge "stronger" from the coronavirus pandemic despite a warning about its future, and said the airline was hopeful of raising a sizeable cash injection.

In an interview with AFP, the colourful chief executive said he never imagined the industry could face such a crisis, which has triggered massive layoffs worldwide and led to some carriers collapsing.

"I never believed the aviation industry could be hit this hard. But ... we are still flying," he said from his office in downtown Kuala Lumpur.

"This will not go on forever. We will come out stronger."

READ: Putrajaya tells airlines to set reasonable fares as the economy recovers from COVID-19
AirAsia pioneered low-cost travel across Asia in the early 2000s, feeding insatiable demand for cheap flights from a rapidly-emerging middle class, and became one of the region's top budget carriers.

But the Malaysian carrier reported dismal first-quarter results this week after grounding almost its entire fleet due to the virus, prompting auditor Ernst & Young to warn of "significant doubts" about its future.

It also noted the airline's liabilities currently exceeded its assets by RM1.84 billion (US$430 million).

Fernandes said the airline could not "run away" from the assessment but added: "We had four months of no revenue, that does not mean liabilities will exceed assets for the rest of our lives."

AirAsia was taking steps to minimise costs, including cutting about 7.5 per cent of 23,000 staff across its businesses, he said, but added he hoped there would not be any further job losses.

READ: Malaysia's AirAsia founders not taking salary; staff members accept up to 75% pay cut
"FLYING WON'T DISAPPEAR"

Fernandes said the airline was in talks with international and local lenders to raise funds to weather the crisis, adding he was hoping to raise "more than RM1 billion" (US$230 million) - and possibly up to double that within six months.

Business has rebounded strongly since flights resumed in late April, and Fernandes said he was confident conditions would improve, particularly in AirAsia's key markets.

"We are flying domestically, we know that international flights are not far away," he said.

"AirAsia is in a good market because COVID has been pretty well controlled in (Southeast Asia) and North Asia."

READ: Airlines hit wall of debt after COVID-19 grounding
He said the impact on budget carriers would not be as severe because people were more likely to fly short-haul.

Long-haul travel would "take a while" to recover, he added.

He also played down speculation AirAsia might merge with crisis-wracked Malaysia Airlines, the country's flag carrier, saying the airlines served different markets.

"A country needs a full service airline and a country needs a budget airline," said Fernandes, who has carved an image for himself as Asia's answer to Richard Branson.

But Fernandes, who is also the co-owner of London football club Queens Park Rangers, added the carriers could collaborate in areas such as engineering.

READ: Commentary - To help us travel safer with COVID-19, airports need new checkpoint technology
Malaysia Airlines has struggled to recover from two crises in 2014 - the disappearance of flight MH370, and the shooting down of flight MH17 over Ukraine - and the government has been seeking a strategic partner for the carrier.

The auditor's warning sent AirAsia's share price tumbling almost 18 per cent Wednesday, although it rebounded 6 per cent to RM0.75 on Thursday.

READ: Face masks, health checks and long check-ins: The future of flying
And Fernandes insisted he was "confident" about the future.

"We've got to laugh, we've got to be positive," he said. "Flying is not going to disappear."

BOOKMARK THIS: Our comprehensive coverage of the coronavirus outbreak and its developments
Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram

Source: AFP

TRANSPORTATION
AirAsia will rebound to profit in a year, vows CEO Tony Fernandes
Discount airline needs to raise $470m in next 6 months to be 'very comfortable'

Lower cost: Southwest Airlines employee Oscar Gonzalez (right) assisting a passenger at the ticket counter at Love Field in Dallas recently. Furloughs are seen to create a competitive boost for budget carriers like Southwest. — AP

THE US legacy airlines with lacklustre employee demand for early exit packages face large furloughs in the fall, signalling higher post-pandemic labour costs because union contracts require airlines to furlough in reverse order of seniority.

This could create a competitive boost for budget carriers including Southwest Airlines, whose lower cost structure could help it win market share with cheaper fares, experts said.

Labour will be the biggest single cost for airlines struggling to weather the coronavirus crisis that has crushed air travel demand.

With no quick recovery in sight, United Airlines said Wednesday it was sending 36,000 furlough warnings to union workers, nearly half its staff, after having received only 3,700 volunteers for early exit deals. Flight attendants are among the hardest hit.

The union contract requirement to furlough lower-salaried union workers first creates a higher per-seat-mile labour cost and a larger cost gap against low-cost carriers.

“And I imagine ticket prices will flow more or less in line with that, ” said Blake Haxton of Diamond Hill Capital Management analyst, which owns airline shares.

United flight attendants earn under US$30 an hour at the lower end of the pay scale versus nearly US$70 an hour at the top end, according to 2016-2021 contractual pay charts reviewed by Reuters.

Low-cost carriers like Southwest have another advantage: Their networks are more focused on domestic leisure travel, where demand is seen recovering first. Legacy carriers, on the other hand, generate more profit from business travel, which remains anaemic.

“It’s a perfect storm for the legacy carriers, ” Haxton said.

United’s warning, which one labour leader called a “gut-punch” but also an “honest assessment” of the state of the industry, is the first indication of the scale of large airlines’ job cuts coming Oct 1.

That is when airlines that received a US$25bil federal payroll support package to help protect jobs through September can begin involuntary furloughs.

Unions have asked lawmakers to extend the payroll aid through March 31. Airlines are not opposed to the idea but are not actively lobbying for it, with little appetite to extend conditions tied to the first package, people familiar with the matter said.

The final number of United furloughs will depend on how demand evolves and how many employees leave voluntarily. The deadline to apply for early exit deals, which offer travel and health benefits but no cash, is July 15.

Exit packages at Southwest, aimed at avoiding its first furloughs in its 49-year history, include buyouts. The deadline is also July 15.

Delta Air Lines is also offering buyouts. American Airlines is expected to roll out a broader early-exit programme for frontline workers soon but has warned it may have 20,000 more staff than needed in the fall.

Until now, tens of thousands of airline workers have taken temporary unpaid leaves, helped by a US$600 weekly federal unemployment supplement that expires this month. That means more employees could return to payroll on Aug 1 if a push in Washington for a second round of stimulus checks fails.

Furloughs will vary by work group, with airlines seeking to avoid pilot furloughs because of the timely and costly training involved in bringing them back.

It generally takes about one year to re-train 800 pilots, union officials said. If a Covid-19 vaccine is developed and demand bounces back, airlines want to be able to pick up that demand.

United said it was sending about 2,250 furlough warnings to pilots while working with the union to mitigate the final number. — Reuters

bahai4453 If Tony is agreed to merge with Malaysia Airlines without any changes in Malaysia Airline'S BOD and management team, Tony certainly will make a biggest mistake in his life because Malaysia Airline is already a rotten apple with huge losses and a deep black holes to patch. Further more Malaysia Airline is GLC.
He rather seek for JV with PRC business men. Good example is the Zhejiang Geely Holding Group bought over of Proton Holding in 2018. Now you just look at Proton holding now !
10/07/2020 11:16 AM

Yup...!!!

TRANSPORTATION
AirAsia will rebound to profit in a year, vows CEO Tony Fernandes
Discount airline needs to raise $470m in next 6 months to be 'very comfortable'


Tony Fernandes said he was confident AirAsia coud be profitable in 2021. (Photo by Yuki Nakao, File photo)
P PREM KUMAR, Nikkei staff writer
July 9, 2020 19:41 JST
KUALA LUMPUR -- AirAsia Group CEO Tony Fernandes on Thursday said the low-cost airline can bounce back to profitability next year, but that it will look to raise 2 billion ringgit ($469 million) in the next six months to be in a "very comfortable" position.

In an interview with Nikkei Asian Review, Fernandes expressed confidence that AirAsia can overcome heavy losses brought on by the COVID-19 pandemic.

The Malaysia-based company said earlier on Thursday that it was working to raise more than 1 billion ringgit ($234 million). Air Asia gave details of its plans after its shares fell sharply on Wednesday following a statement from the company's auditors, Ernst & Young, which expressed doubts about the airline's ability to continue as a going concern.


"At 1 billion ringgit, we are comfortable. But if we can raise 2 billion ringgit, we would be in a very comfortable position," Fernandes, AirAsia's founder, said from his Kuala Lumpur office. "I know I'm ambitious, but I am confident that in 2021 we can be profitable."

A portion of the funding would come from a share offering to take place within the next six months, according to Fernandes, who said the new shares would be placed with a third-party investor. "We have received a lot of interest from everywhere. Our corporate finance team is working hard in finalizing the best deal," he said.

Fernandes also dismissed speculation that the airline might pull out of joint ventures in Japan and India. He said both countries were still promising and there were no plans to withdraw from those markets. "[In] Japan and India, we have excellent partners, and there are no plans to exit, at least at the time being. We need to expand in these markets, and maybe in one more year they can be profitable," he said.

Fernandes said domestic flights had resumed at 50% capacity, with a load factor of 60% in July alone, a sign of growing demand. The airline expects to be running at 90% capacity domestically by year-end, while international flights will increase gradually.

Other supporting factors include rising air fares, low fuel costs and increased travel demand in countries where AirAsia operates.

On the statement by Ernst & Young, which informed the Kuala Lumpur stock exchange that it found "material uncertainties" that may cast "significant doubt" on the carrier's ability to continue as a going concern, Fernandes said he did not take offense at the report, which he called "completely fair." He pointed out that the airline was not alone in facing a tough environment due to the pandemic.

"The lines that EY wrote will be on the papers for most companies out there, not only airlines. We are all affected by this unprecedented event," Fernandes said.

"We draw attention to Note 2.1 and Note 48 to the financial statements, which indicate that the group has a net loss of 283 million ringgit ($66.2 million) for the financial year ended 31 December 2019 and the current liabilities exceeded its current assets by 1,843 million Ringgit," the auditors said in their statement. "The travel and border restrictions implemented by countries around the world have led to a significant fall in demand for air travel, which impacted the group's financial performance and cash flows," the report said.

AirAsia's shares were suspended briefly on Wednesday and closed at 0.70 ringgit, down 17.5% from Tuesday's close. On Thursday they partly rebounded, rising 6.4% to 0.75 ringgit.

AirAsia on Monday reported a first-quarter net loss of 804 million ringgit, reversing a 96 million ringgit profit for the year-earlier period.

The COVID-19 pandemic has closed the borders of most of AirAsia's key markets, including Malaysia, Thailand, Indonesia, the Philippines, China and India. As a result, the budget airline carried 9.85 million passengers in the first quarter, down 78% from a year earlier.


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Japan looks to reopen business travel with 10 more Asian economies
China, South Korea and Singapore among candidates for new air bridges


Narita Airport near Tokyo and other Japanese flight hubs aim to nearly double coronavirus testing capacity by August. (Photo by Yo Inoue)
YUKIO TAJIMA and SHOGO KODAMA, Nikkei staff writers
July 9, 2020 23:40 JST
TOKYO -- Japan intends to begin talks in mid-July on resuming business flights with 10 more economies including mainland China, South Korea and Taiwan, a move that will be backed by a sharp increase in coronavirus testing capacity.

Tokyo also seeks travel talks with Singapore, Malaysia, Brunei, Myanmar, Cambodia, Laos and Mongolia.

Prime Minister Shinzo Abe is expected to unveil plans for the negotiations soon. The move comes as agreements between destinations where the pandemic is under control -- known as travel bubble or air bridges -- proliferate in Asia.


Japan already has opened similar discussions with Vietnam, Thailand, Australia and New Zealand. Vietnam welcomed about 440 Japanese business flyers in late June.

Tokyo's plans for reopening travel target economies that hold deep ties with Japan and have controlled the spread of the novel coronavirus. Taiwan is expected to be among the first to agree to the arrangement.

Though Tokyo will enter talks with Beijing and Seoul at the same time as Taiwan, concerns exist that the number of Chinese and South Korean travelers would overwhelm Japan's testing capacity.

Japanese airports are currently capable of testing up to 2,300 people a day. The expansion of diagnostic testing centers and the introduction of antibody tests will raise daily capacity to 4,000 people by August.

mobile-email-iconStay ahead with our exclusives on Asia
Sign up to our newsletters to get our best stories delivered straight to your inbox.

SK1200 Yahoo..thnx for those sell 0.615 yesterday..done sell at 0.65..

Power...I Q...@0.68...^^^

strattegist green
10/07/2020 10:41 AM

Q...@0.82...Take some profits... $€£...!!!

liyita @geary. Do you still count on the China vaccine? Haha! China soldiers have side effects!

I ain't expert in medical science...but all vaccine have side effects...if benefits greater than the later...then they just do it...same like most western medicines have side effects when taken for long time...this is an emergency...so those front line workers...defence forces...firdt to be vaccinated...Sometimes lot of demonic rumours from western media especially products came out from China...Huawei is one of them...!!!

The week that was - rate cut | https://www.klsescreener.com/v2/news/view/700331

More margin account openings...!!!

BanglaMan No sell, wait for Holland.. see my track record.. I’m never wrong..

U in Holland...AA still alive n kicking around...(✷‿✷)

strattegist green

Dark Green then... SELL...(θ‿θ)

AirAsia sees early signs of recovery | https://www.klsescreener.com/v2/news/view/700271

Sustainable aviation fuel for recovery | https://www.klsescreener.com/v2/news/view/700299

Consolidation trends...!!!
https://www.marketwatch.com/story/dow-futures-point-to-lackluster-stock-market-open-as-investors-await-weekly-jobs-data-11594293039

legendaryfeeder Tomorrow Friday. Bloodbath day. TP 0.20

Yup...Q at...@0.20...!!!

bahai4453 What rewards ? waiting for below 0.60 !

Q at...@0.58...◉‿◉

'Tried and True'

"It's a tried and true strategy," said Paul Offit, director of the Vaccine Education Center at Children’s Hospital of Philadelphia, about inactivated vaccine technology.

"If I had to pick a vaccine that I think would be the most likely to be safe and effective, it would be that one," he said. Offit is also co-inventor of the rotavirus vaccine, RotaTeq , manufactured by Merck & Co Inc.

Four of the Chinese candidates in human trials are inactivated vaccines, including Sinovac's and two vaccines from China National Biotec Group (CNBG), a unit of state-owned China National Pharmaceutical Group (Sinopharm).

There are currently only two experimental Covid-19 vaccines in final Phase III trials - one from Sinopharm and another from AstraZeneca and the University of Oxford. Sinovac's is set to become the third later this month.

To speed up the process, China allowed Sinopharm and Sinovac to combine Phase I and Phase II trials for their vaccine candidates.

For CanSino's experimental vaccine, the PLA research institute played a key role, with the two working on a method using an adenovirus - a similar approach to AstraZeneca's.

The PLA has its own approval process for "military specifically-needed drugs", and approved the military use of the candidate developed by its research unit and CanSino last month.

PLA lead scientist Chen Wei, who has been the face of its vaccine development effort, was among the first to take the experimental Covid-19 shot developed by her team, as well a s its potential SARS treatment years before, according to state media.

Challanges

China has challenges, though, as the epidemic has petered out in the country, hampering efforts to conduct large trials.

It has since shifted its focus overseas, but only a handful of countries have shown willingness to collaborate - UAE, Canada, Brazil, Indonesia and Mexico. Neither major European countries nor the United States have shown interest in China's Covid-19 vaccines as they focus on their own projects.

China must also address concerns over its vaccine quality and safety issues following several scandals over substandard vaccines in recent years.

"The Chinese national regulatory authority has been improving its oversight," said Jerome Kim, head of the International Vaccine Institute, a non-profit agency established as an initiative of the UN Development Programme.

China leads Covid-19 vaccine race
1 DAY AGO
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China, where the new coronavirus is thought to have originated, brings state, military and private sectors together in a quest to combat a disease that has killed over 500,000 people worldwide.
A woman holds a small bottle labeled with a
A woman holds a small bottle labeled with a "Vaccine Covid-19" sticker and a medical syringe in this illustration taken April 10, 2020. (Reuters)
China has been forging ahead in the race to develop a vaccine to help control the Covid-19 pandemic, with Sinovac Biotech's experimental vaccine set to become the country's second and the world's third to enter final stage testing later this month.

While a laggard in the global vaccine industry, China, where the new coronavirus is thought to have originated, has brought state, military and private sectors together in a quest to combat a disease that has killed over 500,000 people worldwide.

Many other countries, including the United States, are coordinating closely with the private sector to try to win the vaccine development race, and China faces many challenges.

Its success in driving down Covid-19 infections makes it harder to conduct large-scale vaccine trials, and so far only a few other countries have agreed to work with it.

After past vaccine scandals, Beijing will also have to convince the world it has met all safety and quality requirements.

But China's use of command economy-type tools is so far yielding results.

A state-controlled entity, for example, completed two vaccine plants at what it called the "war time speed" of a couple of months, while state-owned enterprises and the military have allowed experimental shots to be used on staff.

The People's Liberation Army's (PLA) medical research unit, which has been a driving force in China's efforts to fight infectious diseases, is also working with private firms including CanSino to develop Covid-19 vaccines.

Challenging the West's traditional dominance of the industry, China is behind eight of the 19 vaccine candidates in human trials, with Sinovac's experimental shot and one jointly developed by the military and CanSino among the front runners.

It is also focused mainly on inactivated vaccine technology - a technology that is well known and has been used to make vaccines against diseases such as influenza and measles - something which could raise the chances of success.

By contrast, several Western rivals such as US-based Moderna and Germany's CureVac and BioNTech are using a new technology called messenger RNA that has never before yielded a product approved by regulators.

READ MORE: J&J moves up start of coronavirus vaccine human trials to July

At war time speed', China leads Covid-19 vaccine race
China has brought state, military and private sectors together in a quest to combat the coronavirus.
China has brought state, military and private sectors together in a quest to combat the coronavirus.PHOTO: REUTERS
PUBLISHEDJUL 7, 2020, 9:18 PM SGT
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https://www.straitstimes.com/asia/east-asia/at-war-time-speed-china-leads-covid-19-vaccine-race

https://www.malaymail.com/news/money/2020/07/09/after-auditor-flags-doubts-airasia-says-confident-business-will-continue-af/1882877

https://www.scmp.com/news/asia/southeast-asia/article/3092107/singapore-malaysia-border-opening-decision-august

AirAsia confident in continuation of business despite unqualified opinion by auditor
TheEdge Thu, Jul 09, 2020 11:33am - 48 minutes ago


KUALA LUMPUR (July 9): AirAsia Group Bhd said it is confident in the continuation of its business despite an emphasis of matter by its auditor highlighting significant uncertainties for the low-cost carrier to continue as a going concern given the effects of the Covid-19 pandemic.

In a statement, it said its business will be supported by actions undertaken by the governments of countries it operates in and the outcome of ongoing discussions with financial institutions and investors to obtain the required funding and implementation of management’s action plans.

“The first half of 2020 was extremely challenging. However, in recent weeks, countries around the world resumed domestic travel and were gradually reopening international borders in recognition that air transport provides the connectivity that is essential for the resumption of economic activities.

“The formation and discussion of ‘travel bubbles’ and ‘green lanes’ with key economic partners with a low infection rate and proven pandemic curbing system are a step in the right direction,” said AirAsia group chief executive officer (CEO) Tan Sri Tony Fernandes.

He added that the group had resumed flights on a “staggered yet steady” basis since late May as domestic travel restarted in Malaysia, Thailand, Indonesia, India and the Philippines.

The group had also launched promotions and campaigns, generating higher-than-expected sales, said Fernandes, pointing out that the group saw a total of 75,000 seats sold in a single day on Tuesday — a sign of pent-up demand.

The group has also sold over 200,000 AirAsia Unlimited Passes since the recent launch for domestic Malaysia, domestic Thailand and AirAsia X.

“Positive trends of our flight bookings and load factors are additional signals of a better second half of the year. In June, our group-wide load factor was 60% with AirAsia Malaysia’s load factor reaching 65%. For July, we expect to achieve a higher load factor of 70% despite tripling our capacity month-on-month to cater to increasing demand,” Fernandes said.

“As a great believer in Asean, we remain confident in the growth potential of the region. In the IMF’s (International Monetary Fund) latest World Economic Outlook, Asean-5’s GDP (gross domestic product) growth was expected to rebound strongly to 6.2% in 2021, one of the highest growth rates in the world.

“We’re confident that AirAsia will not only benefit from this growth upturn but also contribute to the region’s recovery given the significant role that air connectivity plays in Asean’s trade and investment landscape,” he added.

He also touched on the group’s funding plans, pointing out that the group had received various forms of proposals and were in numerous discussions with banks, lenders as well as investors.

AirAsia had received indications from certain financial institutions to support its request for funding, amounting to more than RM1 billion, said Fernandes.

He emphasised that a certain portion of the loan would be eligible for a government guarantee loan under the Danajamin Prihatin Guarantee Scheme.

Meanwhile, the group’s Philippine and Indonesian entities are in various stages of bank loan applications. It is also applying for a government guarantee loan under the Philippine Economic Stimulus Act (PESA).

On the cost side of its operations, the group has taken measures including headcount rationalisation as well as a group-wide temporary salary reduction of between 15% and 75% to ensure its working capital remains intact.

“We have received deferrals from our supportive lessors and are now working on further extensions. We have also restructured 70% of our fuel hedging contracts and are continuously negotiating with our supportive counterparties for the remaining exposure.

“All in all, we expect at least 50% reduction in our cash expenses in 2020,” said Fernandes.

On Tuesday, a Bursa Malaysia filing by AirAsia stated that its auditor Ernst & Young PLT had issued an unqualified audit opinion on the material uncertainty relating to the group’s going concern given the current economic climate and the Covid-19 pandemic.

The auditor noted that AirAsia posted a net loss of RM283 million for the financial year ended Dec 31, 2019 (FY19), and that its current liabilities exceeded its current assets by RM1.84 billion.

At 10.30am, AirAsia had gained 3.5 sen or 4.96% to 74 sen, giving it a market capitalisation of RM2.47 billion.

Read also:
AirAsia says it aims to raise RM2.4 billion via debts and equity









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AAX 0.095
AIRASIA 0.750
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Comments

DickyMe IB's in Malaysia are managed by crooks just like the politicians

Street Smart...Power...!!!

AirAsia confident in continuation of business despite unqualified opinion by auditor | https://www.klsescreener.com/v2/news/view/699879

xuxu @geary good, wish you win big ! haha

U too...will give back as charity...!!!

xuxu @ geary wow bought at 0.68, are you still holding ?

Yup...wait see how in the afternoon...or Friday morning...(. ❛ ᴗ ❛.)

Although AA has poor performance, it is valuable and honest!

This is why investors support AA!

U can buy...trade...short-sell... remember to take profit when it's very green...n to buy when it's very red...ʘ‿ʘ

AirAsia get banks’ nod for RM1b funding | https://www.klsescreener.com/v2/news/view/699855

greedy44444 To those daredevils that managed to get below 70 cents...congrats ! Can sell half or all to collect your well-deserved profit.

Too much IQ...n so calculative with numbers sure backfires... hehehe...(•‿•)

xuxu bought 0.7 sold 0.75 good luck to you all !

Power day trading...◉‿◉

Investman1981 Dunno that Could be MAS 2?

MAS apa ada...makan darah rakyat...!!!

Added 1 Ton...@0.68...!!!

Will you continue to support AA codes in the second half?

Ha...Just like Liverpool...Miracle in Istanbul...I thought of throwing away my betting tickets...after kena teruk 3-0...First half...what a comeback...hohoho...!!!

tomorrow Finance Ministry announces fiscal package for AirAsia ...lol!

That's EQ... quality of a great traders...!!!

joyvest suspension is not lifted so soon ...........

AA n gang can kaotim very fast one...why worry...Q...@0.50...｡◕‿◕｡

joyvest in future, if you see EPF dumps , just follow them as well...........dump without hesitation...

That's why your return just like EPF...LOL...!!!

abang_misai TF don’t have any more money to kaw-tim” the auditors.

You think without his Sifu Branson...n others...TF no others... taekwondo knockouts Ada...maybe some others big yuan dynasty...!!!

Bobii Airasia also make loss prior to covid. Go see 2019 FY net loss hundred of millions

Very hard to explain to people don't know 2009 is what day at that time...on 2008...then what about 2000...MAS since SIA separated lost money until now...tak boleh still want to learn from Japan...wait long long...learn from Bangladesh maybe...!!!

ocpd >> The big question is who will be buying to absorb the shares thrown out to the market?

Funds ibs spa tahu... graduated from top schools in US or UK...then talk big...just earn a small salary...they think they are Tan Sri...!!!...cannot break also must break... habits strengthen a person characters...◉‿◉

123eztrade will be just like MAS... expected

MAS without Covid-19 long time already bankrupt for so many years...tak malu...still sitting inside n dig money...make Malaysia malu only...!!!

The big question is who will be buying to absorb the shares thrown out to the market?

That's why must funds have low return of investment...only those private individuals funds...not listening to big elephants...will be more daring to buy n sell...as they like...lot of private freedoms...But do you know when to buy n when to sell...!!!

Bobii @geary. Now I also feel sad for you. I forgot tony fans are made from metal

Buying n selling shares nothing to feel sorry...if macam ini...Better keep your money in the bank...n let those bank IBs...gamble for you...!!!

abang_misai All institutional funds will start selling at 2.30pm. Full stop.

Not much institutions funds left, even EPF sold quite a lumps, some foreign funds, plus insiders...That's it why...linger around this Price...!!!

Bobii Because he has been over confident the past 2 days and keep shouting buy
08/07/2020 12:49 PM

It ain't over...AA Budget Brand will survive...AAX not so sure...the world without Borders...how nice...even vaccine...take times for everyone to detach from the Fear...!!!

i3lurker TP = 25 sen
Real Investor discounted from Affin TP of 31 sen

These things you ask mabel...meow meow meow...!!!