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flee

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Everything posted by flee

  1. What is happening now is virtually unprecedented - the whole world has ground to a halt at the same time. You can bet Airasia's auditors won't be the only ones flagging companies with signficant and material concerns about the viability of the businesses. We now see public health and economic crises running simultaneously. Armed conflict would add a third dimension. Lets hope that common sense prevails and the current madman at the White House is replaced by someone who is actually able to run the country properly!
  2. 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
  3. 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
  4. 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
  5. 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
  6. 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
  7. Coronavirus: Budget airline AirAsia's future in ‘significant doubt’ https://www.bbc.com/news/business-53331387
  8. Budget airline AirAsia's future in ‘significant doubt’ https://www.bbc.com/news/business-53331387
  9. 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
  10. 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.
  11. 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
  12. Airasia Group Investors' presentation: https://ir.airasia.com/misc/1Q20-presentation-airasia.pdf
  13. 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
  14. 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
  15. 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
  16. 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
  17. Coronavirus: Plane-maker Airbus to cut 15,000 jobs Aerospace giant Airbus says it plans to cut 15,000 jobs as it deals with the effects of the coronavirus crisis. It will cut 1,700 jobs in the UK, along with thousands more in Germany, Spain and elsewhere. The move is subject to talks with unions which have opposed compulsory redundancies. The Unite union said the Airbus announcement was "another act of industrial vandalism" against the UK aerospace sector. Some 134,000 people work for Airbus worldwide, with around a tenth of them in the UK. The firm said the UK cuts would fall only on the commercial aircraft division at its two sites at Broughton in Flintshire and Filton, Bristol. More: https://www.bbc.com/news/business-53242272
  18. MSN 1966 spotted in TLS - this was originally allocated to Airasia X F-WWCX Airbus A330 Neo Air Asia by @Eurospot 10.000.000 views, on Flickr MSN 1971 was another A330-900 due to go to Airasia X this year but it appears that this will not be taken up - however, there are rumours that it may go to Thai Airasia X. F-WWYA Airbus A330 Neo Air Asia by @Eurospot 10.000.000 views, on Flickr
  19. Norwegian Air cancels 97 Boeing MAX and Dreamliners, claims compensation OSLO (Reuters) - Norwegian Air (NWC.OL) has cancelled orders for 97 Boeing (BA.N) aircraft and will claim compensation from the U.S. plane maker for the grounding of the 737 MAX and for 787 engine troubles that hit its bottom line, the Oslo-based carrier said on Monday. The airline cancelled 92 of the 737 MAX jets, five 787 Dreamliners and so-called GoldCare service agreements related to both aircraft, just as Boeing on Monday began a crucial set of flight tests of the 737 MAX in an effort to gain regulatory approval for it to return to the skies. “Norwegian has in addition filed a legal claim seeking the return of pre-delivery payments related to the aircraft and compensation for the company’s losses related to the grounding of the 737 MAX and engine issues on the 787,” the airline said. More: https://www.reuters.com/article/us-norwegianair-boeing/norwegian-air-cancels-97-boeing-max-and-dreamliners-claims-compensation-idUSKBN2402X2
  20. Report: Malindo Air offers staff one-year voluntary unpaid leave KUALA LUMPUR, June 29 — Malindo Airways Sdn Bhd is reportedly offering its employees a voluntary long-term unpaid leave of one year, following which their employment status with the company will be made known. According to an internal memo sighted by The Malaysian Insight, the scheme scheduled to start on August 1 is said to allow employees of the low-cost carrier to go on “voluntary unpaid leave without any justification”. https://www.malaymail.com/news/malaysia/2020/06/29/report-malindo-air-offers-staff-one-year-voluntary-unpaid-leave/1879723
  21. flee

    Boeing 737 MAX

    Boeing set for critical 737 Max flight tests Boeing's bid to see its 737 Max return to the skies faces a pivotal week with flight safety tests expected to begin. Pilots and technical experts from regulators and the company are understood to be planning three days of tests, possibly starting on Monday. Boeing's best-selling aircraft was grounded last year after two crashes killed all 346 people on the flights. The tests are a milestone for Boeing, but even if they go well, months of further safety checks will be needed. Aviation regulators grounded the 737 Max about 15 months ago following two crashes - a Lion Air flight and an Ethiopian Airlines flight - within five months of each other. See: https://www.bbc.com/news/business-53212274#
  22. Maybe they warmed up before taxi to runway.
  23. Good grief! King Spotter at it again! I think they need about 4 mins to get the engines up to operating temperature and stabilised. Very nice catch, KS!
  24. NokScoot one step closer to liquidation BANGKOK: Low-cost carrier Scoot announced on Friday (Jun 26) that the board of directors of NokScoot has passed a resolution to liquidate the troubled airline. NokScoot is a joint venture between Scoot and Thailand-based airline Nok Air. NokScoot's shareholders will deliberate the same resolution at a NokScoot general meeting in two weeks, Scoot said in a media release. Scoot, which owns 49 per cent of NokScoot, said the airline had been unable to record a full-year profit since it was established in 2014. https://www.channelnewsasia.com/news/business/nokscoot-directors-passes-resolution-liquidation-scoot-airlines-12874274
  25. Passenger Traffic in 2020 Estimated to Reduce Between 48.7 Per Cent and 50.3 Per Cent Year-on-Year from Record High in 2019 KUALA LUMPUR, 26 JUNE 2020 – The Malaysian Aviation Commission (MAVCOM) published today the seventh edition of its Industry Report, Waypoint. The report provides an overview of the performance of the Malaysian aviation sector in 2019 and the outlook for 2020. In the March 2020 edition of Waypoint, MAVCOM forecasted that passenger traffic this year would contract by between 36.2 per cent and 38.1 per cent year-on-year (YoY) as a result of the COVID-19 pandemic. Following recent developments, the Commission has revised its forecast to a decrease of between 48.7 per cent YoY to 50.3 per cent YoY, which translates to between 54.3 million and 56.0 million passengers this year. 19.6 million passengers were recorded in the first five months of 2020, which reflects a drop of 55.2 per cent YoY in passenger traffic. The decline in passenger traffic was largely attributable to the travel restrictions imposed as part of measures taken by countries worldwide to contain the spread of COVID-19. This includes the implementation of the nationwide Movement Control Order (MCO) in Malaysia effective 18 March 2020. These restrictions, contributed to the cancellation of flights by both Malaysian and foreign carriers, with many passengers either unable and some choosing not to travel by air. The Commission estimates a cancellation of 35.2 per cent in domestic seats and 42.9 per cent in international seats scheduled for 2020, equivalent to a total of 44.8 million seats. As at early June 2020, 38.8 million seats had already been cancelled by local and foreign carriers, higher than MAVCOM’s previous estimate of 31.0 million seat cancellations in 2020. Carriers are expected to continue adjusting their seat capacity in response to the many factors surrounding travel demand and restrictions. As at early June 2020, Malaysian carriers have cancelled a total of 29.6 million seats in 2020 compared to 28.3 million seats at end-May 2020. Likewise, foreign carriers operating to and from Malaysia are also reducing their seat capacity – a total of 9.2 million seats have been cancelled in 2020 as at early June compared to 8.5 million at end-May. Consequently, the revenue-at-risk for 2020 by Malaysian and foreign carriers is estimated to be RM11.3 billion and RM4.6 billion, respectively (previous estimates: RM6.8 billion and RM5.0 billion), which collectively represents 51.1 per cent of estimated total airfare revenue in 2019. As for aerodrome operators, MAVCOM estimates that revenue derived from Passenger Service Charges (PSC) that are at risk is approximately RM0.5 billion (previous estimate: RM0.4 billion). This amount represents 33.4 per cent of total PSC revenue in 2019. YBhg. Datuk Seri Saripuddin, Executive Chairman of MAVCOM said, “The impact of COVID-19 on the aviation industry has been extremely severe, and with no comparable precedent, the rate of recovery for the industry will be difficult to predict. The current relaxation of movement restrictions within Malaysia, however, should facilitate faster recovery for the domestic market. Immigration controls and quarantine measures in Malaysia and elsewhere, alongside passenger willingness to travel by air during this period, will also influence how quickly the overall industry will return to pre-COVID-19 levels. The safe re-introduction of international travel and the adoption of the International Civil Aviation Organization (ICAO)-recommended safety measures vis-à-vis managing COVID-19 for air travel could go some way towards reinvigorating the industry. https://www.mavcom.my/wp-content/uploads/2020/06/20200626-MAVCOM_ECONOMICS_WAYPOINT-JUNE-2020.pdf#new_tab
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