Back in early Aug 2010, I gave AirAsia credit. Yeah I did. LOL!
In the posting Positive Move That AirAsia Defers Their AirBus Order, I said the following...
- However, let me say this, I have to give AirAsia some credit for eating the humble pie and for successfully persuading AirBus to allow them to defer the delivery of the air crafts and more so, this move really gives them a fighting chance to survive and to overcome their insanity of building a company which was clearly over burdened by the immense corporate debts they took upon to finance the building of their business.
Yeah.. AirAsia should be ok for the next one year or so... yeah.. this is a POSITIVE CORPORATE exercise... it's certainly extremely crucial that AirAsia made this postponement of delivery.... but... deferring is only a postponement.... and in regardless, these air crafts order still needs to be delivered!
(ps: you are welcome! :D )
And I continued to make reference on it.
On 4 Dec 2010: A Look At AirAsia Stellar Earnings. The positive moves from the deferment of the aircrafts was visible on the balance sheet. I made the following remarks.
- The cash/debt level, has it improved?
The c.c or capital commitment column 'improved'. Would I pay attention to the value? Or should I pay attention to the number of aircraft to be delivered?
On 24 Feb 2011: What Do You Thnk Of AirAsia's Earnings?
From that posting ::
Cash actually improved a lot compared to the previous quarter.
And debt increased slightly.
But the capital commitment... there was a huge improvement, yes?
And as mentioned before in August 2010, I thought it was a Positive Move That AirAsia Defers Their AirBus Order.
Seriously... it's giving AirAsia a fighting chance to survive!!!
And I still hold those remarks from that posting.
- However, let me say this, I have to give AirAsia some credit for eating the humble pie and for successfully persuading AirBus to allow them to defer the delivery of the air crafts and more so, this move really gives them a fighting chance to survive and to overcome their insanity of building a company which was clearly over burdened by the immense corporate debts they took upon to finance the building of their business.
Yeah.. AirAsia should be ok for the next one year or so... yeah.. this is a POSITIVE CORPORATE exercise... it's certainly extremely crucial that AirAsia made this postponement of delivery.... but... deferring is only a postponement.... and in regardless, these air crafts order still needs to be delivered! - Anyway... a postponement is a postponement is a postponement. Come 2014 (last August AirAsia deferred 8 AirBus to 2014) and 2015, these air crafts still needs to be delivered. Which means, from now till then, AirAsia still needs to ensure that it builds up its cash flow to ensure it can accept delivery of these air crafts that they had ordered. Unless of course, AirAsia can pull off another miracle by asking AirBus to allow them to defer yet once more. :P
ps: yeah, AirAsia X listing would indeed help AirAsia financials. It too is required. And it is the ONLY OTHER logical and sensible option for AirAsia to rescue its dire balance sheet.
Back in early 2009, I certainly thought AirAsia was doomed. I really thought there was a 90% chance it go into deep trouble but now I have changed my opinion. It's doing all the right things to survive.
They got their placement of shares. They deferred their aricraft order and their current plans to list AirAsia Thailand would help a lot!
But then the main issue or risk is... 2014 and 2015.
That's when AirAsia would have to take deliveries of all the aircrafts orders they have postponed. Will they survive? Or will they not?
ps: I have no idea what the stock would do. :/
<<<<<>>>>>
Last night AirAsia reported its earnings.
I believe the following updated table would speak for itself in regards to the much improvement in AirAsia balance sheet.
ps: And as usual I have no idea and have no interest to know how the stock will do.
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