Some people I was talking to yesterday say that Air Asia International (AAX) is facing serious problems on some of its international routes. And so they are cutting "unprofitable" routes. The latest being AAX axing its Christchurch run. Please read here.
"In January, AAX said it would stop flying to London, Paris, New Delhi and Mumbai. It is learnt that AAX is moving away from long-haul to medium-haul flights."
The first question that pops up now is what is Air Asia going to do with all those hundreds of Airbuses they have just placed on order at the Paris Air Show in June last year? Just how many planes did they order? Well read here. Air Asia ordered 200 planes plus an option for 100 more. Cost : RM54 billion. Whoever the Airbus salesman, agent, middleman was, he, she, they or it made some huge commissions.
AirAsia places largest ever order with 200 A320neo aircraft
Largest-ever order consolidates A320 Family’s market leading position
Blagnac, 23 June 2011
AirAsia, the largest low cost airline in the Asia-Pacific region, has placed a firm order with Airbus for 200 A320neo aircraft. The contract, announced at the Paris Air Show today, is the largest order ever placed for the A320 Family and makes AirAsia the biggest airline customer for the Airbus single aisle product line worldwide.
Airplane deals generate commissions between 1% to 5% for the middlemen. That is between RM540 million to RM2.7 billion for whoever was the salesman / middleman in Air Asia's 200 planes plus 100 planes deal !!
However, after buying 200 Airbus A320s plus options on another 100 planes, Air Asia is now cutting flights to the world's most busiest destinations like London, Paris, New Delhi, Mumbai and Christchurch. Haiyya then what about less busy destinations around the world like Timbuktu, Ulan Bator and the Falkland Islands?
What will they do with all those 200 new Airbuses? I think I know the answer. I think Air Asia's Sales Department will soon be calling the Purchasing Department at Malaysia Airlines. Here is the conversation. It is fictional ok.
AA : Hellooo Purchasing Dept, MAS. This is Sales Dept Air Asia calling.
MAS : Yes Air Asia how can we help you?
AA : We still have a few more Queen's Park Rangers T shirts to sell to you.
MAS : Oh just send them over. We'll take them.
Air Asia : OK. Thank you for shopping at Air Asia. We also have some Airbus 320 Neo planes to sell. Can you buy them?
MAS : How many do you have?
Air Asia : About 200.
MAS : How many are you selling?
Air Asia : About 200.
MAS : Ok. We'll ask our shareholder Khazanah Nasional. Please wait a couple of days. They will have to ask their con-sultans for the time. Their con-sultans will then call us - we have the watch. Is it ok if we call you too, ok? You know just to double check the time?
Air Asia : OK. We will wait for your call. By the way, we will be going to the Paris Airshow again next year.
MAS : Do you think you will have some free tickets ?
Well folks, excuse me for sounding so serious. Lets lighten up a bit shall we. Lets cut ourselves some slack. Here is some funny news that will make you feel like laughing. Its such a good joke.
Thursday March 1, 2012
- MAS posted a shocking RM2.52bil net loss for its financial year ended Dec 31, 2011
- the biggest-ever loss in its corporate history ..
- The RM2.5bil figure for 2011 includes a RM1.09bil provision
- “The company is in crisis. group chief executive officer Ahmad Jauhari Yahya said
- The non-cash items include RM179mil of stock obsolescence (mostly spares for the B737 aircraft),
- RM602mil for re-delivery of aircraft (it will return 52 of its leased aircraft and will incur some cost in making sure they are in pre-delivery condition),
- and RM314mil impairment of freighter aircraft (adjusting the freighters to current market value).
- By stripping out the RM1.09bil provisioning from the net loss of RM2.52bil, the actual loss incurred by the airline for 2011 is RM1.43bil.
- MAS is in dire need of more cash.
- needs another 60 days to come up with a plan.
- “The plan includes, but not limited to, debt and/equity market options. Khazanah Nasional Bhd and Tune Air..
- deputy Mohammed Rashdan Yusof did not rule out the possibility of ..selling non-core assets to raise cash.
- Ahmad also disclosed that talks with Qantas were under way
- Ahmad remains positive, saying “if we follow our business plan, we should be in the black (this year).''
Lets forget about MAS for a while ok. After all Ahmad says, "we should be in the black (this year). So relax everyone. Chill.
Lets get back to Air Asia. Air Asia's shareholders include that Slumberjack crony, who is partners with the SIL in that EPF company they hijacked before. Of course the Advisor to MAS is none other than Slumberjack himself. Cosy isnt it.
Has anyone heard of Jack The Ripper?
Maybe its good that Tony Fernandez will take over MAS, Tony Fernandez has brought AirAsia to success highhandedly. Perhaps MAS will benefit under him.
ReplyDeleteAgree. We need more people like Tony Fernandez to manage MAS.
DeleteA revamp on the Management of MAS might help bring in more profits for the company.
ReplyDeleteNampaknya MAS dalam pengurusan yang kurang baik sekarang. cari jalan penyelesaian bagi masalah ini.
ReplyDeleteharap jika dia ambil ahli, MAS akan mengalami keuntungan.
ReplyDeleteI believe MAS should undergo a corporate restructuring as well as liquidate some of its non-performing assets in order to recover their losses
ReplyDeleteMAS should look closely.. why the low cost airline can survive and able to generate their profits while the expensive one suffer with a huge loss??
ReplyDelete