先跳过‘长假，来说说今天发生的事。。。
话说星期一回到古晋，灰爷爷不争气，左手和左脚残了。。这下烦恼了。。不可能逼它再行走到附近的加油站打气。本来想说看看哪里能借到打风器，大概打了一点就去加油站打气。结果没有。惟有call 人来换轮胎， 老子我不会换，只好花钱叫人来换后备胎。。
约了今天中午到家里， 那间店的工人来到家里换后备胎，全部资料都拿齐，店名， 地点。。好了， 知道在哪里了，也跟老板说好过后到他店了才还钱。。。
开开心心去到。。。
看到’新发什么轮胎电池’的就直接停下车， 找老板，他的工人马上拆下那后备胎，老板也跟我拿了电话， 当时我觉得奇怪，他明明就有我的手机号码，为什么还跟我拿电话号码，就这样离开了， 才刚上车不久， 刚刚去到我家的那位仁兄竟然出现， 跟我说我去错间了， 是那边一间。。有没有搞错？！ 两间的店名这么相似！ 一个是新发兴，一个是新发， 而且都在同一排。。（其实那位仁兄在我家时有说不是新发X， 是新发，我当时也不以为意， 谁知道名字会这么接近。。）结果非常paiseh!...我问老板怎么招牌这么像，他就跟我说他的是新发。那一间是新发兴，如果他没跟我说我还没发现到那间新发兴有一个’兴‘字！ 没办法了，不可能推掉那间， 而且人家已经正如火如荼的施工当中 。。。他跟我收了RM15的人工。。真的是摆个大乌龙！
‘Mystery’ shrouded deal to save AirAsia?
Why is Khazanah giving away 20.5% in 'asset'-rich MAS, which has an extensive network and prized position in the Tier-5 airline market, for a stake in debt-ridden AirAsia?
The boss of Khazanah Nasional says that the MAS-AirAsia deal is, among other things, “not a bail-out” of MAS.
Well, we have questions for him.
Firstly, why was this deal worked out in the first place? Why AirAsia? Isn’t AirAsia operating at some 40 times its price earning (PE) ratio?
Looking at its numbers and the fundamentals, the high PE could mean that AirAsia stocks are overpriced.
That may mean some boys are cooking up the numbers to set up the market and make killings.
Former prime minister Dr Mahathir Mohamad said MAS “can learn” from AirAsia on ways to cut costs.
Does that mean all those damned exercise carried out by former MAS chief Idris Jala wasn’t enough? Why don’t we learn from Singapore Airlines or Qatar Airlines?
Oh… we want to learn from our home-grown talent will be the likely answer.
Commissions, commissions
I know this is a BAD deal because Mahathir said so. Mahathir always says something when he actually means the reverse.
I know this is a BAD deal because Mahathir said so. Mahathir always says something when he actually means the reverse.
So what can we learn from AirAsia?
Let’s look at the home-grown talent’s (AirAsia) records. As of the first quarter of 2011, AirAsia debts amounted to RM7.7 billion with cash balances amounting to RM1.7 billion.
This part doesn’t require teaching for MAS. Its executives are renowned masters.
Let’s see further. In August 2010, AirAsia announced a deferment of its proposed aircraft purchases but sometime in June 2011 it reversed its decision and proceeded to place an order for an additional 200 new aircraft at the Paris Air Show.
No big deal, we can order as many as we want.
Possibly the commissions earned from the purchases dwarfed the one earned from the Scorpene submarines.
AirAsia’s skyrocketing debts
AirAsia’s skyrocketing debts
As of March 31, 2011 (first quarter report), AirAsia’s capital commitments stood at RM19 billion.
With the latest announcement, an additional RM54 billion will be added as capital commitments. The proposed capital commitments of about RM74 billion will be spread over a 15-year period ending 2026.
In other words, AirAsia has to increase its earnings to an average of RM5 billion per annum to meet its future dues.
From 2006 to 2010, AirAsia’s revenue grew by ten-fold from RM110 million to roughly RM1.1 billion. This is an average growth of RM 200 million per annum.
Now how will it reach RM5 billion?
This, we will see in the coming months when AirAsia rationalises all its routes and what not.
AirAsia’s cash reserves rose six-fold from approximately RM300 million to RM1.7 billion. But its debts skyrocketed from RM1.05 billion in 2006 to RM7.7 billion in 2010, an increase of 700%.
Surely this looks like a debt burden that is spiralling out of control.
Scheming Fernandes
This AirAsia-MAS deal is signed, sealed and delivered at an onerous and ominous time.
The world economy, including Asia’s, will be heading into another maelstrom and air travel will invariably be hit.
So what can be done?
One, AirAsia can cancel orders but contract penalties will be onerous.
AirAsia wouldn’t want to pay penalties, would it? The debt with Malaysia Airports Bhd (MAB) too, it dragged on for what seemed to be forever.
Also, AirAsia chief Tony Fernandes is probably thinking along what economist John Keynes said: “When you are a big borrower, the banks are scared of you.”
So as a big borrower, Fernandes feels that size does matter after all!
He thinks it will shield him from foreclosure as banks will be wary of bearing heavy losses!
But also, a sizeable chunk of those loans are being held by Malaysian banks and in the worst-case scenario, the government and the taxpayers will have to pick the tab to avert a financial meltdown cascading down the AirAsia slope.
AirAsia – bad debtor
AirAsia – bad debtor
Now let’s take a look at MAS, currently the whipping boy but which is instrumental to further the game being played by Khazanah boss Azman Mokhtar and gang.
MAS has a paid-up capital of RM3.384 billion and has a fixed asset value of RM8.4 billion.
Its net asset is at RM 6.962 billion, where cash constitutes RM 2.086 billion.
Compare that to the position of AirAsia, which we have pointed out above. AirAsia has borrowings of up to RM7.7 billion and its cash position is RM1.7 billion.
In an earlier article, we pointed out that AirAsia has a record of being a bad debtor. It once owed MAB over RM65 million and whenever actions were taken against them, AirAsia would run to their chief counsel, former premier Abdullah Ahmad Badawi.
Now of course AirAsia has Mahathir on its side and also the abrasive and aggressive former International Trade and Industry Minister, Rafidah Aziz, who can be counted on to also be its enforcer.
MAS’ strenghts
MAS’ wealth is actually its network and position in the Tier-5 airline market. MAS’ annual operating turnover is RM12.98 billion versus AirAsia’s RM 3.948 billion.
MAS’ operating revenue from airline operation is at RM11.649 billion against AirAsia’s RM2.839 billion.
Whatever you “name” this MAS-AirAsia – “merger” or “coorperation” – it is a mystery-shrouded takeover with elements of manipulation and failure of disclosures.
Khazanah is giving away 20.5% of its holding in a company with a bigger network, acclaimed higher standard of service, much bigger operating revenue, stronger assets, lesser debts, more cash and better paymaster track record to another company with lesser track record.
AirAsia’s strength is that it excels in hyped-up marketing and showing it can make a lot of net money in shorter time.
The writer is a former Umno state assemblyman and a FMT columnist. This excerpt is from his blog sakmongkolak47.
