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KK Lee

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Everything posted by KK Lee

  1. 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.
  2. Before LCC, PIA was reputed to have the highest aircraft utilization rate and envy of MH.
  3. SQ is a glc, on a mission for sg, have over horizon vision (i.e >10 years), quarterly reports although is important but not critical. AK's existence is to maximize returns to controlling shareholders, is a different breed, is unlikely to change post covid19.
  4. If tf could convience #ddtg to pump ak stock, the story would be different.
  5. Coming from well oiled petronas, the new chairman will either leave a legacy or retire early.
  6. KUALA LUMPUR -- Southeast Asia's biggest low-cost carrier AirAsia Group is set to reduce its workforce by up to 30% as founder Tony Fernandes considers selling a 10% stake in the airline to raise cash. Desperately trying to stave off a cash flow crisis triggered by the coronavirus pandemic which has decimated the region's travel and tourism industry, AirAsia will also slash remaining staff salaries by up to 75% in an attempt the save the airline, the Nikkei Asian Review has learned. The retrenchment will include cutting 60% of AirAsia's cabin crew and pilots for both AirAsia and its medium-haul affiliate AirAsia X. AirAsia Group operates through Malaysia, Thailand, Indonesia, Japan, India and the Philippines. https://asia.nikkei.com/Business/Transportation/AirAsia-to-slash-workforce-by-30-considers-10-stake-sale Bloodbath
  7. Thai Airways: pandemic delivers final blow to mismanaged carrier Stripped of state protection, national icon faces drastic recovery overhaul The slow collapse occurred in layers. Management was inconsistent as presidents and board members frequently came and went for political reasons. And employees were not blameless, taking advantage of executive mismanagement to feather their own nests. It wasn't that the need for reform went unrecognized, just that efforts by past presidents, when they came, were inevitably cut short. Piyasvasti Amranand took the helm in October 2009 after serving as energy minister. Within Thai, he is still spoken of as the only true reformer, launching cost-cutting measures such as salary cuts for senior executives. Despite helping the airline fill its deficit in 2009, directors suddenly voted him out in June 2012 in what was seen as a politically motivated ballot. His spouse was a senior member of the Democrat Party and the kingdom was under the premiership of Yingluck Shinawatra from then-rival-Pheu Thai Party controlled by her brother, the exiled former Prime Minister Thaksin Shinawatra. Piyasvasti expressed exasperation at receiving no explanation for the apparent boardroom coup. "The performance of the company during my term has improved in every aspect," he said at the time. Charamporn Jotikasthira, former president and chief executive officer of the Stock Exchange of Thailand, took the helm in 2014. But Charamporn's reforms faced a major revolt from the airline's union and made little progress. He ended up retiring in February 2017. Sumeth Damrongchaitham took over the position in September 2018, but resigned March this year in the middle of his tenure. Unprofessional boards also did not help. After a military coup in 2014, a trend emerged when Air Chief Marshal Prajin Chatong, who later became a deputy prime minister in the junta, was appointed chairman. Five civilian members were purged and replaced with five Royal Thai Air Force officers. The appointments marked an end to the management culture of only appointing technocrats to board management positions that Thaksin had introduced around 2001 and Yingluck abided by. Three air chief marshals are currently on the board and have no experience in running listed companies or restructuring loss-making airlines. Unions are guardians of workers' rights, but employees at Thai are seen as overprotected. Salary increases are based on length of employment. "At times, senior captains were getting paid more than the president of the company," a former board member told Nikkei Asian Review. At one time, the airline had 300 engineers reporting 8 hours overtime for all 365 days of the year, "which does not make sense," the former board member said. And, he added, when changes were introduced to reduce such compensation anomalies, staff were able to get around them through special allowances. https://asia.nikkei.com/Business/Company-in-focus/Thai-Airways-pandemic-delivers-final-blow-to-mismanaged-carrier
  8. UK economy rely heavily on financial services, foreign students, export, and etc, quarantine if imposed will cost the economy enormously.
  9. One business model Khazanah could adopt to incubate MH replacement. Khazanah could sublease aircraft to this new airlines and subsidize RM100m, RM150m, RM250m, RM200m and RM100m in aircraft lease from year 1 to 5. Investors to responsible for opex and the rest. With this model, only competent and resourceful investors will undertake, and airlines could expand fairly rapidly with minimum capex. And Khazanah exposure is limited.
  10. Merger of AAGB and MAG will have a crash of corporate culture. unemployed MAG staffs could seek employment elsewhere. besides many are already on unpaid leave.
  11. What alternative available to MAG? For certain, none of airlines or foreign sovereign wealth fund is interested. Khazanah should take the opportunity to close this zombie company else would just draining the resources. After the economy is recovered, could used money saved to incubate a new airlines.
  12. BANGKOK -- Thai Airways International, a listed state-owned enterprise, is dangerously close to becoming the world's first national flag carrier to go bust amid the coronavirus pandemic, with only days left to maneuver out of its latest financial straits. Down to its last 10 billion baht ($307 million), according to local reports, which is enough to pay its employees for one month, the airline is in talks with the Thai government regarding a bailout. To tide itself over during the emergency, the carrier has requested that the government approve a 70 billion-baht bridge loan, with the Finance Ministry as a guarantor, ministry sources told the Nikkei Asian Review. https://asia.nikkei.com/Business/Transportation/Thai-Airways-on-financial-brink-as-government-debates-rescue
  13. “Plus their (Golden Skies') original proposal relied 100 per cent on debt funding from third parties. They do not have any equity of their own,” Shahril told the New Straits Times (NST) today. It seems this type of financing structure is typical and popular in this country.
  14. Doubt any well managed banks would fund loss making airlines acquisition at this time.
  15. Smart move to take advantage for the crisis. If in other country, T2 refurbishment is likely defer.
  16. KUL is already pretty well connected to the world via BKK, SIN, HKG, DXB, DOH, AUH, LHR, NRT, ICN, CAN and AMS. Incentive to airlines (e.g LH, QF, NZ, AF, etc) need not insist non-stop to/from EU or AUS, extension from SIN or BKK is affordable and feasible. This 3 years incentive is to incubate demand for foreign airlines. Hopefully, after incentive, they could continue via SIN/BKK or non-stop to their hub.
  17. Medevac, special cargo are mostly intra state, Maswings should be sufficient to cater, MAS 738 is a luxury. Mentioned previously, Maswings could operate a mix fleet with smaller 30-50 pax aircraft to cater for low load. Subsidizing regional like maswings is many times cheaper than MAS. There is always 101 reasons not to change but there are alternative solution. MAS business model remain largely unchanged since 1990's, is proven financially not feasible and unsustainable. If we don't change or adapt, resources is wasted and not better utilized.
  18. Believe it is more cost effective and beneficial for gomen to relocate resources spent on MH to upgrade and maintain hospital facilities in KCH and BKI, and supplement with contract or chartered PC-12 or King Air air ambulance . Not that foreign airlines won't serve BKI-SDK or BKI-KCH, it is just not permitted. Believe MI, TR, KA would be happy to ply SIN-BKI-SDK, SIN-KCH-BKI, HKG-BKI-KCH, HKG-BKI-SDK. If MI or KA is allowed to set up a regional hub at BKI and KCH, could base or contract a few regional jet to feed BKI-HKG, BKI-SIN, KCH-SIN like LH/EN in Italy. Inter city road in Sabah and Sarawak has been neglected on purpose for many years. by keeping the people poor and rely on gomen handout, those in power could demand their votes.
  19. How many medevec flights needed each year? How much would it cost if is to charter or contract air ambulance? Would RM80m in 2019 be enough? MAHB is already offer incentive to attract airlines to serve KUL. To encourage competition and suppressed airfare, gomen could spend more to attract more foreign airlines to serve KUL. Without MH, ticket price to US and EU is not more expensive than previously. The curtailed of MH network has proved, MH is non essential, financially not feasible and the country could relocate resources to better use. New airlines doesn't start with 2 dozen narrowbody, most grow from a fleet of two. RM800m gomen spent on MH each year could start and sustain a decent size fleet. A major issue in this country is to find competent management. One solution is gomen to offer 51/49% JV with foreign airlines.
  20. If financially feasible, other will step in. MH is a failure and will continue to drain valuable resources. Taxpayers have been subsidizing MAB for RM800m p.a for last few years. Money saved for certain more than enough to contract Medevec.
  21. How often stretcher and special missions are needed? If gomen want, could make this a condition for AOC renewal. OD is a private enterprise, couldn't sustain without operation profit. It is likely, OD is paying high lease to parents company. To encourage competition, gomen could encourage and approve another aoc. If there is money to be made, for certain some will apply for AOC.
  22. MAB/MH is a zoombie company by any definition, gomen should take the opportunity to wind it up, so resources could be relocated for better use, not that OD or AK couldn't substitute MH's role.
  23. As MAS has no chance to recover in next few years, believe the country could make do wth AK and OD. If these two airlines become duopoly and expensive, gomen could always issue new AOC.
  24. It is a matter of when not if local hospitals will run out of ventilator for critical patients. Current 2 weeks soft lock down won't eradicate covid 19 from the country; believe lock down could be extended or reimposed later. without gomen assistance, many airlines won't survive. believe central banks like fed may purchase bonds issued by airlines or gomen could compensate airlines for flights cancellation during lock down.
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