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flee

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Posts posted by flee


  1. 13 hours ago, JuliusWong said:

    Apart from that they took quite aggressive steps to reduce loss, raising capital.

    • Reduce total number of employees from 19,000- 21,000 to about 9,000-11,000 by the end of this year. However, they will start recruiting again to reach the target of 13,000-15,000 in 2025.
    • Travel privilege for current employees will be getting cut down. No more ticket offer for former employees and family member of deceased employees(!) (except those who participated in their MSS program)
    • Merging some divisions and downgrading management level for employees from 8 to 5 layers.
    • Reducing the number of executives from 740 to 500. This initiatives has been completed.
    • Selling off staff training center building and various office space including Headquarter to shore up capital.
    • Holding warehouse sales to sell off Dom Perignon, Veuve Cliquot, salt and pepper shakers, and every inflight amenities, past and present generations.
    • Reduction of pilot from 1,400 to 905. 495 pilots to be made redundant. All remaining 905 pilot will receive new contract with new salary and benefits schedule on 18th February 2021.
    • Leasing or buying another 13 new widebodies and 10 narrowbodies, if the plan is approved by restructuring governing board. This include 10 B787 aircraft, bringing total to 18. Another 3 B77W which are now fully built and ready for delivery. 10 A320neo narrowbodies would be for Thai Smile replace current older A320ceo. 
    • Selling off 42 surplus aircraft, as noted above: 
      • 10 x Boeing 747-400s
      • 2 x Airbus A380-800s
      • 12 x Boeing 777-200s
      • 6 x Boeing 777-300s
      • 3 x Airbus A340-500s
      • 6 x Airbus A340-600s
      • 1 x Airbus A300-600
      • 2 x Boeing 737-400s

    While Thai Airways International Group has been quite upfront with their restructuring plan, Malaysia Airlines Group has been quiet..........like very quiet.

    Thai Airways fleet looks like an aircraft museum!

    On 2/26/2021 at 3:00 PM, Chris Tan said:

    I can imagine the experts bashing MH in the not-so-distant future for its short sighted fleet renewal plans -- why didn't MH take advantage of lower rates to renew their fleet, the average age in 2021 was almost 9 years old, why wait till 2025, SQ/CX/VN/TG/GA/everyone else already have shiny new planes, how can they serve so many destinations with only 6 A350s, etc etc.

    Anyway, I hope they'll keep the experts fully informed of their decision making. The experts are the ones who'll determine the direction of our beloved MH.

    MAG can't really do fleet planning without a strategic long term plan. That is why they are so quiet on these matters. The Khazanah bailout is only enough to sustain current flying activities but leaves little for future development.


  2. Bloomberg report: https://www.bloomberg.com/news/articles/2021-02-22/malaysia-airlines-parent-firm-gets-green-light-for-restructuring

     

    Khazanah did not have a choice - they have to keep MAG going and bail them out again!

    With Covid-19 vaccinations progressing now, there should be some hopes that travel will resume by 2H 2021. MAB should be looking at what routes they will begin to operate in that period. It is likely that more weight will be given to routes where cargo traffic is highest.

    They need to evaluate what their fleet requirements are and drop aircraft if they are surplus to requirements. With lease rates lower these days, there is no real need to replace their relatively young aircraft fleet. They may only want to look at receiving new aircraft after 2025. Boeing will surely push them to take delivery of their Max 8 on schedule. Good thing that the Max 10 is delayed. 

    As for widebodies, the A380 looks like it is gone. The A350 is good for the LHR service (and maybe to Japan and Australia). MAB should also consider using the A350 to reintroduce pax service to AMS. It is likely that Europe will open up to travellers sooner than Asia Pacific. Many A333s will see their leases expire - MAB should negotiate aggressively to extend these at a much lower rate because the A333 were used for cargo flights and will continue to be a useful aircraft to have, especially at lower lease rates. The PW4170 engines are still young and should still be good - but MAB must inspect the blades closely.

    Lets hope that MAB can be more transparent and let us know what their plans are for the coming years.

     


  3. 20 hours ago, KK Lee said:

    Either plan a or b, creditors will loss and the management remain unchanged. old wine in new bottle.

    I think you are 100% correct. It will be business as usual - there will be no major changes. Same old inefficient, incompetent and overpaid management. Wait for the next "turnaround" plan in 2 or 3 years.


  4. COVID-19 forces major change across Asia-Pacific airline industry

    Airlines in the Asia-Pacific region have two priorities at the moment – short term survival, and figuring out how they need to adjust to the post-COVID-19 industry landscape. The first is obviously the most pressing issue for now, but airlines also cannot lose sight of the longer-term picture.

    With many aircraft parked and international traffic in the doldrums, airlines are scrambling to negotiate new financing and are looking to defer as many short term aircraft deliveries as possible. The traffic and demand growth assumptions that have formed the basis of airline plans have been rendered obsolete by the pandemic, forcing them to launch business reviews as they recognise the need to streamline their operations.

    Across the Asia-Pacific region, some business models and markets are faring better than others. In many cases, governments are providing a vital lifeline. But despite encouraging signs in specific markets, the real disruption to the airline industry could play out over the next few years.

    More here: https://centreforaviation.com/analysis/reports/covid-19-forces-major-change-across-asia-pacific-airline-industry-534197


  5. AirAsia will be back stronger in 2021, with international operations starting to open up within the next six months. AirAsia X is needed within Asia as a medium haul airline.

    The airline is talking to the Malaysian government about receiving a USD250 million soft loan over five years, with capital raising taking place over next two to three months.

    The airline will take all the planes on order, but it needs time to regrow. The new logistics company will need freighters. 

    Talking at the CAPALive on 9-Dec-2020, AirAsia’s Group CEO Tony Fernandes spoke with CAPA’s chairman emeritus Peter Harbison.

    Some key highlights can be found below.

    https://centreforaviation.com/analysis/reports/capa-live-airasia---huge-data-opportunities---and-546649


  6. BA halts Sydney, Bangkok flights to Oct 2021, axes Kuala Lumpur

    https://www.executivetraveller.com/news/ba-halts-sydney-bangkok-flights-to-oct-2021-axes-kuala-lumpur

    I wonder when the flights will end - maybe after the Christmas and New Year holiday season? Better go an spot their B788s before they finish off their flights!

    Bye bye BA. Too bad Covid-19 killed any demand that remained...


  7. AirAsia X proposes to reduce issued capital by 99.9pct and announces plans for fresh equity of RM500 million for a reset of the airline post-COVID-19

    SEPANG, 14 December 2020 - Pursuant to representations made by certain creditors, AirAsia X Berhad (AirAsia X) intends to revise the proposed reduction of 90% of the issued share capital of AirAsia X to 99.9% of the issued share capital. This comprises a reduction of the issued share capital of approximately RM1,532.51 million to RM1.53 million. The credit arising from the proposed share capital reduction will be used to offset part of the accumulated losses. The proposed share consolidation which shall be undertaken following the proposed share capital reduction shall remain unchanged, i.e. a consolidation of every 10 existing AirAsia X shares into 1 AirAsia X share.

    Shareholders funds after the capital reduction remains negative but the consolidation of shares post- capital reduction will provide a platform to seek fresh funding from existing shareholders.

    For its fundraising, AirAsia X proposes to raise up to RM500 million comprising both a rights issue of up to RM300 million from existing shareholders and a share subscription of shares of up to RM200 million from new investors. This equity fundraising exercise is a critical component of the comprehensive restructuring and recapitalisation plan announced earlier and will support the implementation of the Group’s revised business plan. The operating environment is evolving and dynamic. There are several scenarios envisaged within our business plan and the funds to be raised are adequate for each of these scenarios.

    Prior to the fundraising however, AirAsia X must first secure the approval of its creditors for the debt restructuring scheme. Several lessors have intervened in the restructuring proceedings to register their objections to the scheme. AirAsia X wishes to reiterate that the debt restructuring scheme is a prerequisite for the recapitalisation of the Company by both existing and new investors and a comprehensive reset of the airline is required to provide a platform to rebuild and a vehicle attractive enough for investors to invest in.

    In the next few weeks, AirAsia X will continue to engage with creditors and hopes to further allay their concerns. The alternative to the scheme is a liquidation of the airline without any returns to creditors. Post-COVID-19, a reset with fresh equity and a repositioning of the airline as a regional medium-haul low-cost carrier will provide the best economic returns to creditors in a continued business relationship.

    The Company has received some indications of interest for investment in a restructured AirAsia X and will similarly continue to engage with these potential investors.

    https://newsroom.airasia.com/news/airasia-x-proposes-to-reduce-issued-capital-and-announces-plans-for-fresh-equity

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