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  1. Yesterday
  2. Everyone is so focused on the virus destroying demand for travel nowadays, I guess that has, for now at least, overshadowed the potentially even greater threat of an all out China-US trade war, or heaven forbid, China-US armed conflict It could be that of winning a battle now, but then having to face an even bigger one in an ongoing war My apologies for the damp sentiments 😀
  3. Tony Fernandes says he remains optimistic AirAsia will pull through Covid-19 aviation crisis and recover by next year https://www.malaymail.com/news/malaysia/2020/07/09/tony-fernandes-says-he-remains-optimistic-airasia-will-pull-through-covid-1/1883047
  4. AirAsia says it aims to raise RM2.4 billion via debts and equity https://www.theedgemarkets.com/article/airasia-says-it-aims-raise-rm24-billion-debts-and-equity
  5. retrenched or furlough? it looks like airasia is chopping (not as subtle as cutting) capacity already if they gonna retrench the pilots.
  6. United Airlines to furlough up to 36,000 staff United Airlines says up to 36,000 of its workers could be furloughed due to the coronavirus pandemic. That amounts to almost half of the company's total US-based frontline workforce. “Throughout this crisis, we have been honest and direct with you about our need to right-size our workforce to match travel demand,” it said. The carrier said it expects capacity for this month to be down 75% compared to July last year. https://www.bbc.com/news/business-53344547
  7. Any idea on what will happens to their MPL holder if they are retrenched from AAGB ? Any possible for them to join other airline in future?
  8. Unqualified Audit Report with Emphasis of Matter clarification & Latest Business Updates SEPANG, 9 July 2020 - AirAsia Group Berhad (“AirAsia” or the “Company”) wishes to draw attention to our latest update where AirAsia’s external auditors, Messrs Ernst & Young PLT issued an unqualified audit opinion with an emphasis of matter on material uncertainty relating to going concern in respect of the Company’s audited financial statements for the financial year ended 31 December 2019. The unqualified audit opinion states that the financial statements of AirAsia for the financial year ended 31 December 2019 are true and fair and in compliance with financial reporting standards and statutory requirements, in all material aspects. The emphasis of matter highlights that there are significant uncertainties with respect to the Company’s ability to continue as a going concern as a result of the unprecedented Covid-19 pandemic. Nevertheless, it is important to note that the financial statements have been prepared on a going concern basis, as the Board of Directors is confident of the successful continuation of the business, in conjunction with the actions undertaken by the governments of the operating entities, outcome of ongoing discussions with financial institutions and investors to obtain required funding and implementation of management’s action plans, in response to the conditions above. In this regard, the auditors’ report should be read in full and can be found in the annual audited accounts that is available on the Company’s Investor Relations website. Domestic rebound demand is strong; Optimistic of re-opening of international travel AirAsia Group Berhad CEO, Tan Sri Tony Fernandes said “The first half of 2020 has been extremely challenging. However, in recent weeks, countries around the world have resumed domestic travel and are gradually reopening international borders in recognition that air transport provides the connectivity that is essential for the resumption of economic activities. The formation and discussion of “travel bubbles” and “green lanes” with key economic partners with a low infection rate and proven pandemic curbing systems, is a step in the right direction. “As domestic travel is now allowed in Malaysia, Thailand, Indonesia, India and the Philippines, we have been resuming our flights on a staggered yet steady basis since late May. In support of governments’ efforts to revive domestic tourism and ultimately stimulate economic recovery, AirAsia has aggressively launched large-scale promotions and sales campaigns. I am encouraged by the higher-than-anticipated sales this has generated. On 7 July, we registered our highest post-hibernation sale with 75,000 seats sold in a single day, reflecting pent-up demand and signalling green shoots of recovery. We also sold over 200,000 AirAsia Unlimited Passes since its recent launch for domestic Malaysia, domestic Thailand and AirAsia X. “Positive trends in our flight bookings and load factors are additional signals of a better second half of the year. In June, our group-wide load factor was 60% with AirAsia Malaysia’s load factor reaching 65%. For July, we expect to achieve a higher load factor of 70% despite tripling our capacity month-on-month to cater to the increased demand. “Teleport, the profitable technology-meets-logistics venture of AirAsia, accelerated it's regional growth despite a challenging environment, growing 49% year-on-year in the first quarter of 2020. This growth was supported by a strong emphasis on transporting medical aid and critical supplies at a time of need. In addition, despite the complete hibernation of the airline group, Teleport pivoted from delivering cross-border e-commerce to last mile deliveries, delivering more parcels, restaurant orders, and fresh produce during the movement control period than in the previous 12 months collectively. With the launch of Freightchain, the world's first digital cargo platform built on blockchain, the re-launch of OURSHOP as an e-commerce marketplace to support the local businesses we love, and rollout of OURFOOD a fuss-free platform to bring all types of food businesses online, Teleport has emerged with even stronger growth prospects for the second half of 2020. “As a great believer in Asean, we remain confident in the growth potential of the region. In IMF’s latest World Economic Outlook, Asean-5’s GDP growth is expected to rebound strongly to 6.2% in 2021, one of the highest growth rates in the world. We’re confident that AirAsia will not only benefit from this growth upturn but also contribute to the region’s recovery given the significant role that air connectivity plays in Asean’s trade and investment landscape.” On funding... “We understand the importance of shoring up our liquidity to ensure sufficient cash flow. We have been presented with proposals in various forms of capital raising, be it debt or equity, and are in ongoing discussions with numerous parties, including investment banks, lenders, as well as interested investors in seeking a favourable outcome for the group. We have received indications from certain financial institutions to support our request for funding, amounting to more than RM1.0 billion. Of this debt funding, a certain portion would be eligible for the government guarantee loan under the Danajamin PRIHATIN Guarantee Scheme in Malaysia. Other than Malaysia, our Philippine and Indonesia entities are currently in various stages of bank loan applications. In the Philippines, we have applied for the government guaranteed loan under the Philippine Economic Stimulus Act (PESA), with an expected positive outcome.” On working capital management,... “During the hibernation period, we have taken significant measures internally as a group while also reaching out externally for assistance to ensure our working capital remains intact. “Internally, we have embarked on headcount rationalisation for leaner operations, given the current demand for air travel and expectations on recovery. Internal cost-cutting efforts include a group-wide temporary salary reduction of between 15% - 75%. “We have received deferrals from our supportive lessors and are now working on further extensions. We have also restructured 70% of our fuel hedging contracts and are continuously negotiating with our supportive counterparties for the remaining exposure. “All in all, we expect at least 50% reduction in our cash expenses in 2020. “In conclusion, the impact of Covid-19 pandemic on the Company is never taken lightly, as does the trust and support put into us. The management has been working tirelessly to ensure the sustainability of our business operations. With the confidence of our stakeholders and business partners, we are determined to move forward in this new normal. We are positive that the proactive mitigating actions we have implemented as well as our consistency in transforming the Company would aid us in recovering and overcoming this operating environment. “In times of difficulties lies opportunities. We have weathered many crisis and emerged stronger. We won’t waste this crisis and we will come out stronger.” Source: https://newsroom.airasia.com/news/unqualified-audit-report-with-emphasis-of-matter-clarification-amp-latest-business-updates Audited financial statements for the financial year ended 31 December 2019: https://ir.airasia.com/misc/AA_2019_Annual_Audited_Accounts.pdf
  9. Last week
  10. According to insiders, AAGB will initiate second round of layoff soon. It will be brutal. In the first round, all Captain, SFO, FO and many others who joined or promoted in 2018-2020 were all retrenched.
  11. AirAsia shares in biggest daily fall as auditor flags ‘going concern’ doubts https://www.malaymail.com/news/money/2020/07/08/airasia-shares-in-biggest-daily-fall-as-auditor-flags-going-concern-doubts/1882706
  12. Coronavirus: Budget airline AirAsia's future in ‘significant doubt’ https://www.bbc.com/news/business-53331387
  13. Budget airline AirAsia's future in ‘significant doubt’ https://www.bbc.com/news/business-53331387
  14. AirAsia securities trade suspended pending additional information from company https://www.theedgemarkets.com/article/airasia-securities-trade-suspended-pending-additional-information-company Not entering as PN17 yet. Company needs approx MYR2bil to stay afloat. Noted during MCO a lot of LCCs like AirAsia Group, LionAir and NokAir have not being doing much belly freight operations nor p2p cargo compared to flag carriers in ASEAN. Probably due to limited dangerous goods item and radioactive medical equipment they could carry. Which contributed to poor revenue.
  15. Air France to shed over 7,000 jobs as part of €7 billion bail-out Air France will shed almost 7,600 jobs over the next three years in an accelerated restructuring implemented in parallel with €7 billion ($7.9 billion) worth of government-backed loans. The airline does not expect a full recovery in demand until 2024. The French flag carrier says its activity and revenue has fallen by 95% over the last three months in the wake of European-wide travel restrictions introduced to counter the coronavirus pandemic. More: https://www.flightglobal.com/strategy/air-france-to-shed-over-7000-jobs-as-part-of-7-billion-bail-out/139153.article
  16. The only way MAG can make it work is to use the same kind of model that IAG uses, i.e. keeping the airline groups separate. A merger of the two airlines into a single entity will probably end in failure. I am not sure how the new Chairman can change things - his position is non-executive. So unless the board redesignates him as executive Chairman, he is just a figurehead.
  17. an unqualified thought, but with the new MAG Chairman could GoM actually be considering a buyout (vs bailout) of AirAsia ? following Petronas model of national monopoly, creating a world class player to compete internationally.
  18. https://www.theedgemarkets.com/article/airasias-external-auditor-raises-material-uncertainty-relating-going-concern Unless creditors consented, massive capital injection or gomen bailout, ak could falls into pn17.
  19. Shareholders awaiting Malaysia Airlines’ strategic plan, says Khazanah https://www.malaymail.com/news/malaysia/2020/07/07/shareholders-awaiting-malaysia-airlines-strategic-plan-says-khazanah/1882331
  20. Airasia Group Investors' presentation: https://ir.airasia.com/misc/1Q20-presentation-airasia.pdf
  21. The results were delayed due to the Covid-19 chaos! AirAsia posts record quarterly loss, seeks payment deferrals and bank loans to sustain cashflow See: https://www.theedgemarkets.com/article/airasia-posts-record-net-loss-rm804m-1q-no-thanks-wrong-hedge-against-oil-prices-hefty Bursa Filing: https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=210314&name=EA_FR_ATTACHMENTS Press Release: https://newsroom.airasia.com/news/airasia-group-berhad-1q2020-financial-results
  22. Royal Air Maroc seeks to remove fleet and dropped routes due to COVID19 pandemic: Selling off 20 aircraft including 4 E190s, 4 B787s, and 12 B737NGs. Seeks to drop Athens, Vienna, Boston, Miami, Sao Paolo, Rio de Janeiro, Stockholm, Copenhagen, Beirut, Amman, N’Djamena and Luanda https://www-moroccoworldnews-com.cdn.ampproject.org/c/s/www.moroccoworldnews.com/2020/07/307614/ram-plans-to-discharge-30-of-its-personnel-liquidate-20-planes/amp/
  23. Earlier
  24. Ismail Sabri: Airlines must reduce fares to post-MCO levels since allowed full loads again https://www.malaymail.com/news/malaysia/2020/07/03/ismail-sabri-airlines-must-reduce-fares-to-post-mco-levels-since-allowed-fu/1881145
  25. Boeing ends 747 aircraft production, closing the era of jumbo jets as coronavirus decimates air travel https://www.scmp.com/business/companies/article/3091696/queen-sky-retires-boeing-quietly-pulls-plug-747-closing-era Sniffles 😥
  26. Civil Aviation Authority of Malaysia suspends Pakistani licence holders in Malaysia https://www.malaymail.com/news/malaysia/2020/07/02/civil-aviation-authority-of-malaysia-suspends-pakistani-licence-holders-in/1880884
  27. Before LCC, PIA was reputed to have the highest aircraft utilization rate and envy of MH.
  28. LONDON: The United Kingdom and European Union (EU) have suspended the flight operations of Pakistan's national carrier Pakistan International Airlines (PIA) to and from their airports following controversial statement by Minister for Aviation Ghulam Sarwar Khan that nearly 300 PIA pilots have suspected licences. On June 30, the European Union Air Safety Agency (EASA) suspended the authorisation for PIA to operate in Europe for the next six months. Similarly, The UK's Civil Aviation Agency suspended PIA's flight operations from Birmingham, London Heathrow and Manchester effective immediately. See: https://www.thenews.com.pk/print/680303-fake-licences-scandal-pia-banned-from-flying-into-europe-uk
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