AirAsia Defends Deferring Of Aircraft, Blames Lack Of Parking!

On Business Times: Deferring aircraft delivery won't affect growth: CEO

• Deferring aircraft delivery won't affect growth: CEO
  
  By Sharen Kaur Published: 2009/08/10
  
  Malaysia's budget carrier AirAsia recently decided to defer taking delivery of eight Airbus A320 planes to 2014 from 2010
  
  AirAsia Bhd (5099) says its decision to defer taking delivery of eight Airbus A320 planes will not affect the budget airline's performance.
  
  AirAsia recently decided to defer taking delivery of the planes to 2014 from 2010.
  
  Its chief executive officer Daruk Seri Tony Fernandes said the airline will continue to expand its business by establishing new routes.
  
  "It won't have any effect on us. We have so much growth anyway. It all depends on how much more you want to grow. We would like to have the aircraft, provided we could park them. Where do we park them?" Fernandes said.

Huh?

Comeon .. give us a break yo!

Is this a parking problem or ultimately is this a ringgit and sense issue???

Perhaps a check of AirAsia cash balances versus debts versus capital commitments would be more accurate, yes?

Last I saw was cash balances was at 223.991 million and total loans stood at 6.934 Billion!!!!!!! ( see Just How Good Is AirAsia Earnings Performance Since Listing? )

And AirAsia total capital commitment for new aircraft is a whopping 27 Billion. ( see screen shot here )

How?

Ringgit and sense time.

Can a cash balance of 223.991 million survive a total loans of 6.934 billion, with an additional 27 billion of capital commitment for new aircrafts?

Can it?

Don't you think that blaming on lack of parking is such a lame execuse?

• AirAsia told Bursa Malaysia last week that it had signed an amendment agreement with Airbus to revise the delivery dates for the A320s as the low-cost carrier terminal (LCCT) in Sepang cannot accommodate its fleet expansion.
  
  It said it is scaling down delivery of aircraft in 2010, and possibly 2011, to optimise its fleet and avoid the costs associated with keeping idle or under-utilised aircraft due to infrastructure limitation (at the LCCT).
  
  AirAsia had in 2005 signed a purchase agreement with Airbus to buy 175 A320s, to be delivered from December 2005 to October 2014.
  
  The airline, established eight years ago, operates 84 aircraft currently.
  
  "I think we have a lot of growth. We haven't slowed down at any stage. Look at the LCCT, it is full 24/7," Fernandes told Business Times last Saturday after receiving guests of AirAsia "Tru-ly Asean" aircraft at the LCCT in Sepang.

Come on... revenue growth and earnings growth is never the same.

Perhaps this posting would be good. Just How Good Is AirAsia Earnings Performance Since Listing?

• "I think there is another 100 planes worth of growth for AirAsia within Asean. Within three hours, you have Siem Reap, Bali, Bandung, Haadyai, great beaches, nightlife and shopping. The list is endless. So that alone is a huge market. We have made this our goal," he said.
  
  In the three months ended March 31 2009, AirAsia's net profit grew 26 per cent as reve-nue increased 33 per cent to RM714.2 million due to better ancillary income and stronger passenger growth.
  
  Fernandes said AirAsia is opening two new points in Indonesia and a few more in Australia this year.
  
  It will also re-activate Haadyai and open routes in Colombo, the Middle East and India.
  
  "We have grown because of Asean. We have grown because we saw the potential of Asean which many missed. And I am sure one day there will be an Asean bank and other Asean products and hopefully we will be a catalyst towards people seeing Asean as a market and not just as a main region.
  
  Fernandes said he hopes that the rest of Asean will see the potential of low cost as Indonesia has and that the region would have more low-cost terminals.
  
  "So growth for AirAsia and other domestic airlines in Asean is huge. You just have to be more focused," he added.
  
  Meanwhile, the event in Sepang was to celebrate the 42nd Asean Day.
  
  AirAsia had provided its aircraft for the delegation of over 100 people to embark on a three-city tour, starting from Jakarta, with a stopover in Kuala Lumpur, and ending in Bangkok.
  
  The delegation was led by Asean secretary-general Dr Surin Pitsuwan, accompanied by Fernandes, Indonesia AirAsia CEO Capt. Dharmadi and Thai AirAsia CEO Tassapon Bijleveld.

Sigh!