World Aviation stocks continue to rally. Summer holidays just around the corner. PP is the easiest and fastest way to get fund. With more funds, more planes to meet the demand. AAX as a long haul aviation stand to benefit more during summer holidays. Good move by Tony. If wasn't capital A issue, AAX would have gone way past rm2 by now.
Get new plane Year end holiday season with low fuel price Japan flight 5k ++ with new planes profit whack kaw kaw .... full year ending rm3.0 EPS is not impossible
IR increase on halt... mayb start to reduce >> good for debt ,, oil price is going down and AAX can start to get cheap fuel for their year end ops >> max PROFIT couldnt be better time for the airline and tony will take full advantage like he always does GOGO dont sleep on this oppurtunity !
Capital A most profitable business is still their airlines. So AAX getting the airline business would be massive. Increasing from 7 aircrafts to 160+ and might hit 200+ aircraft by year end. That would allow AAX to capture the most profitable period in airlines biz. But would also be taking in capital A debts too. Based on some reports, the injection of airlines would not involved share issuance to capital A. Capital A even after injecting the airlines to AAX, would atleast undergo capital reduction, debt restructuring before they can get out of PN17. For AAX, the listing of AirAsia phillipines next year would allow them to reduce the debts. I expect AAX to gain massive interest once the restructuring done.
Before the regularisation plans will be submitted to SC , they ( the said RP ) must be approved by the shareholders otherwise they will be back to the drawing board....Back to square one.
There is no problem for AXX to settle its own debts, hence no problem for AXX to get out of PN17. The only teethy problem is its sister company , Capital A with massive debts of RM 17.8b and Negative NTA of RM -9b. In order to get CapA out of PN17, it is impossible for CA to save themselves on their own and the financial assistance must come from AAX as well
As said, to zerosize -NTA of RM 9b, AAX must at least come with half of RM 9b, ie RM 4.5b. With 4.5b, AAX must issue 2.5b shares( assuming at RM 1.80 ) , seriously ballooning the existing share capital base of 414m shares to almost 3b shares. This move shall certainly face the backlash from the existing shareholders of AA
Continue expand to meet demand. AAX will have massive earning this year. Let's wait the restructuring which would be due in 2 weeks time. We might have more clarity by next week
Now AAX at high price, goreng from 30cent until RM2.1 already 7times, but good news suddenly all come out, tomorrow sure drop further, sell on news, this is the usual reaction of malaysia trash market
He said that 362 A321 aircraft are expected to come in next year, adding that AirAsia X is expected to have 15 wide bodies and up to 20 XLR aircraft.
Do CapitalA or AAX able to get finance for the above aircrafts. Any bank ready to lend money to AAX and CapitalA? And what will be the interest charged?
You can't deny Tony is a tough negotiator. To wipe out 99% of the debts, mainly from leasing agreements, and now they back on expansion with new leasing agreement. How he could managed to negotiate such a deal is simply crazy. Based on reports, all these new leasing agreement would be at a better terms too than previous.
I wish I could tell you. If you look at AAX, 99% of the 32B debts mainly from leasing agreements. I suspect that Capital 9B, probably only half is from their leasing agreement. Focus would be to wipe out the bigger amount from these 2 companies and it is easier for AAX to restructure as they only need to deal with Airbus as their biggest creditor. While airbus allow AAX to do that, they unlikely allow Tony to do it with 2 companies.
But still, to proceed with 362 new planes, that sound of confidence from Tony. No company on the brink would have done that. Airbus wouldn't have allow that to happen either.
Anyway, all this just my assumption. we shall wait for the restructuring plan. It will be soon. I still expect some capital reduction in capital A.
After the pandemic, I can see the change in behaviour of people. People willing to spend more on travel and enjoy life. Even if economy slowing down, I expect people to continue travel with a lower budget. That would mean, picking the cheaper airlines. With this massive expansion, in house maintenance, AirAsia apps etc, it would come into play. That would allow them to have the advantage from the rest of the airlines.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
David Gunter
739 posts
Posted by David Gunter > 2023-06-14 18:41 | Report Abuse
PP is only 7.7% of shares issued some nut job said 90% wakaka