Huh? Now AirAsia Wants To Take Over SIA??

WOW!

I just caught this piece of news:

• AirAsia boss aspires to 'take over' SIA
  by Tim Leonard
  
  KUALA LUMPUR (Dec 5, 2008): Budget airline AirAsia boss Datuk Seri Tony Fernandez yesterday said his long-term objective is to one day “take over” Singapore Airlines.
  
  Speaking at the Global Brand Forum Malaysia at the Palace of the Golden Horses, the maverick entrepreneur revealed his company’s ambitions at the end of a slide presentation.
  
  To the amazement of those present, he showed two pictures – one of aircraft livery and the other of AirAsia’s new uniform for its stewardesses – and told his audience what he he would name his new company – “Singapore AirAsia”.
  
  Fernandez, who was later presented with the Malaysian Icon Award by Deputy Prime Minister Datuk Seri Najib Razak for his contribution to the country, kept the audience in stitches throughout his one-hour presentation.
  
  “And this is the uniform the stewardesses onboard Singapore AirAsia will wear,” he said, pointing to a picture of a smiling woman wearing a combination of the famous SIA baju kebaya and striking red AirAsia skirt.
  
  While many in the audience laughed it off, industry observers took the view that it was a signal from Fernandez, following news reports of Malaysia Airlines having talks on a possible merger or a strategic alliance to form a global airline with British Airways and Qantas.
  
  A Malaysian newsportal said that owing to global economic pressures, the airline industry was going through a consolidation period, with talks of mergers, acquisitions and bankruptcies dominating the business pages.
  
  Najib said he was proud of Fernandez’s achievements, not only for his company but for the country as well. (news source: here )

Tell you what, I will give AirAsia A+ for what it has achieved as a brand name but that's about it.

AirAsia as a stock? AirAsia as an investment grade stock?

Sorry babe but I do not rate AirAsia at all!

All I see a local company who has gone way over its ambitions and BASED ON what AirAsia has reported in its last quarterly earning notes ( see AirAsia Posted Massive Losses! and Regarding AirAsia Forex Losses.) , I would err by stating that the state of its financial health is rather very unhealthy. It's burning cash extremely fast and the loan build-up is way out of hand. And worst still its long time financial commitment is simply beyond my comprehension.

However, do NOt get me wrong here.

It's good to have ambitions.

Ambitions equations to one's personal life goals. Everyone should set themselves goals. Without them, without goals, life is rather meaningless.

However, for AirAsia case, I do believe that before they set such lofty goals, perhaps they should take a good look at their own financial health first.

Yes, get your own house in order first.

Then only then, go set yourselves higher goals to achieve.

As it is, I believe many would find this article simply ludicrous!

And this is my opinion too.