Posted by calvintaneng > 2017-02-24 10:50 | Report Abuse

Sure or not?

Airasia debt has ballooned from Rm72 BILLIONS to RM88 BILLIONS

All these hidden debts are swept under the carpet?

Got money to pay dividend?

Must pay hutang first lah!

Posted by Michael Wong Yew Kong > 2017-02-24 10:57 | Report Abuse

Where did you get the info AA got RM88 billion. ? Mind to share.

Posted by Edmund Soo > 2017-02-24 12:00 | Report Abuse

radzi Calvin is confused. He said that AAX debt is $110 billion. If you care to look at the Balance Sheet, current debt is only $1.1 billion.

When he refers Note 32a, the note simply means commitment for AAX to purchase in the future. Future but not now... How fast in the future ? It is just about 1 or 2 or 3 airplane in a year. Why ? Because Airbus has limitation in its production line. So, why future commitment of $110 billion. OK, now that is a very smart TF move. First, it is an economic of scale. If you purchase more, you get cheaper price because by volume the profit is large. Second, to reduce inflationary pressure. If plane price increase by a few percent a year, in 20 years, the price of the plane would be double.

So now, is $110 billion is a debt at year 2016 or year 2017 ? No, it has not. If AAX has bought all the planes, then the revenue would be $5 billion a year. No plane will sit idle. Either it will increase number of passengers carried by a few hundred percent or it will increase lease revenue.

So, now we see how short thinking a person like Calvin is. If Calvin assume , he just make an ass of u and me.
24/11/2016 22:23

Posted by Edmund Soo > 2017-02-24 12:01 | Report Abuse

radzi: Another thing, AAX has made deposit (pre-payment) mounting to $1 billion plus. On top of it, AAX has a cash deposit of $367 million. So, all together, AAX cash asset and deposit is around $1.4 billion. This is enough to cover all current AAX debt if it chose to payback all in one shot.
24/11/2016 22:30

Posted by Edmund Soo > 2017-02-24 12:01 | Report Abuse

radzi: Calvin Tan Eng is very much misleading. Future number of planes that will be owned by AAX and Airasia is around 200 unit. Out of it , ONLY IN YEAR 2018 , the planes will start to be delivered where AAX placed an order of 76 AAX 330Neo-900 , which has 14% more fuel efficiency compared with Malindo and MAS. Currently, AAX has only 29 airplanes.
25/11/2016 06:12

Posted by Edmund Soo > 2017-02-24 12:01 | Report Abuse

radzi: Calvin is a liar.

Note 32a) It does not mention debt. It just say capital commitment. Capital commitment will only be debt in the future if the company use debt to purchase the aircraft. Debt is not a necessity in the future. Read Corporate Finance 101, there are many ways to finance capital commitment.

Posted by ahbah > 2017-02-24 12:05 | Report Abuse

Dividends no tell lies lah. Many people still no understand this.