According to the Reuters report of 14 September 2009 …
“AirAsia is trying to raise fund of up to RM560 million by selling 400 million new shares via private placement to reduce its debts. Analysts in Malaysia said last month that AirAsia
10 thoughts on “AirAsia needs fund to reduce debts!”
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YB, can you also ask the CFO of AirAsia what he/she understands by Cash Flow? Otherwise, we may have another fiasco similar to PKFZ in no time.
YB
Also, don’t fail to table in Parliament the following questions:
1. How much does MAS owe PMB (Penerbangan M’sia Bhd) for aircraft leasing charges, how old are these debts and what is PNB’s Return on Equity (RoE) on aeroplanes leased to MAS.
2. What is Proton’s real Operating Profit for 2007. 2008 and the quarter to June 2009?
Proton declared an UNAUDITED profit of RM64 million for the last quarter to June 2009, but did not disclose how much of it is derived from Govt R&D Grants, exchange loss/gains and what its Operating Profit have been without this hanky panky thinly disguised Govt bailout!! In 2007 and 2008, the Govt gave Proton $193 million and appx. $100 million in mysterious grants, without which Proton would be reeling from poor cash flow!!
All these involve a heck of a lot more of Taxpayer’s money (hundreds of millions of $) and should be pursued vigorously too!!
dpp
We are all of 1 race, the Human Race
Jala has been kicked out from MAS, next we need to kick out Tony Fatso.
These guys do not worry abt cash flow, they have access to our cash reserve for money laundering.
Since Labu has been shot down, now they are drooling at 1M F1.
YB, let us stir some shits and stop this F1 just like how we stopped Eurocopter, IJN and Labu otheriwse it will end up like PKFZ.
It is just a matter of time that there will be problems in Air Asia. I hope that the government will look into the problems in Air Asia to control the selling of plane tickets in advance. This is the same as taking deposit from members of the public. Najib please take notice that before it is too late please implement some mechanism to control the selling of plane tickets in advance. If the airline goes bankrupt then who is going to be responsible for the plane tickets.
Be careful of all the advertisements of the airlines for buying ticket in advance especially Air Asia.
The tax was paid bona fide by passengers and now the difference between the 110 and 65 is used to fund Air Asia by way of debt pardon. This is against public interest and is a IATA concern too.
Proton received govt grants of RM81m and RM194m for the financial years ending March 2009 and 2008 respectively. The RM81m is for Proton’s R&D expenses of RM162m for the financial year 2009. Acc to the disclosure in their accounts another RM81m is awaiting to be received from the govt in 2009. The treatment of govt grants in Proton seems to be consistent (by a quick look) with the accounting standard FRS120. I wouldn’t call this a bailout as the amounts are relatively small to bailout a company like Proton. Its trade payables are already RM1.3b. It’s more of some pocket money.
MI wrote
resident.wangsamaju
Thanks for producing the exact figures. Good job.
However, I don’t see how the $$366 million handout to Proton by the Govt thinly disguised as ‘R&D Grant’ is relatively small compared to AA’s $110 million airport tax which it scandalously refuses to pay over to the Govt even after a $45 million waiver!!
I am sure all the correct accounting policies have all been followed. But that is not the issue. Proton is in the biz of designing, making and selling cars, not that of receiving Govt grants. What new product has Proton made suddenly in the last 2 years that the Taxpayer has to cough up $366 million in R&D reimbursements? Has Proton come up with a new type of energy saving engine or revolutionary car? The answer is ZILCH!!
As you and all of us now know, International Accounting Standards are not exactly God’s Gospel. It they were, we would not have these huge Bernie Madhoff type ponzi schemes and the global economic downturn due to outright fraud at Enron, world.com, Tyco, Citibank, Lehman Bros, AIG, Morgan Stanley, Merrill Lynch, Northern Rock and the Auto companies in USA and Europe, which are supposed to be THE leading lights in accounting propriety. I am certain the auditors of all these companies will all claim they followed IAS to the T, but it’s the Taxpayer who is now lumbered with a $700 billion bill.
Similarly, we have MAS declaring huge $900 million losses one quarter, and a reversal the next, all due to paper gains/losses from fuel oil hedging. This is hugely misleading to investors, Govt and the public. What did they actually make from flying passengers, the biz they are in? Is this an acceptable KPI? That’s how biz should operate!
We want to know what these companies make or lose as OPERATING PROFIT/LOSS. That will tell you if they are heading in the right direction or just kidding us to keep putting in more and more of Taxpayers’ money with no returns. Eventually, we will end up with another PKFZ $12 billion debacle!
dpp
We are all of 1 race, the Human Race
I can make my business flourish too if I can owe taxes like Air Asia with no action from the government. It is just a con game. How could the government or MAHB allow AirAsia to owe RM110 million airport tax, which have already been paid in advance. Tan Sri Bashir and the Minister of Finance seemed to be very stupid on this.
The question is why no action?
Cannot pay airport tax and yet AirAsia can sponsor football team in America and now F1 team. What a bull sh..!
I will not be surprised at the end of the day , the government had to do a bailout for AirAsia.
So YB, please make sure that the rakyat monies will not be used to bailout AirAsia or any other private companies.
YB
Should also ask if MAB had imposed interest on the outstanding bill. Looks like AAsia is getting an interest-free loan.