AIRA (AIRA MK): Budget Carrier Continues Expansion

The accounting research firm, GMT Research

Lisa Mangkornkarn

The accounting research firm

GMT Research

GMT Research provides independent insight into markets, sectors and companies throughout Asia. Our unique method of mining a comprehensive collection of corporate financial statements for key data allows us to evaluate the financial health of a company, sectors and the market at large. We also investigate the application of accounting standards by companies and sectors, shedding light on the quality of reported profits. Armed with this information, we help investment professionals navigate the financial landscape.

Equity Bottom-Up

Complaining to the Securities Commission about our research appears to be an attempt to undermine our credibility and distract attention away from the issues that matter. How much profit has AirAsia milked from its associates over the past five years and is it appropriate to be doing so at all?Maybe the revelation that AirAsia makes more money selling stuff to its distressed associates than flying people around the region might scare stakeholders away. But it&rsquo;s not just the associates that are loss-making and in financial distress; there are the affiliates such as AirAsia X, and the parent AirAsia.Let&rsquo;s not forget the holding company Tune Group and its loss-making and indebted football club, Queen&rsquo;s Park Rangers, and the rather rushed sale of the now bankrupt Formula 1 team, Caterham. It all looks like a rather large mountain of debt teetering on the edge of default. Perhaps the real reason that there&rsquo;s resistance to recapitalising AirAsia is because Tune Group can&rsquo;t afford it.

Complaining to the Securities Commission about our research appears to be an attempt to undermine our credibility and distract attention away from the issues that matter. How much profit has AirAsia milked from its associates over the past five years and is it appropriate to be doing so at all?Maybe the revelation that AirAsia makes more money selling stuff to its distressed associates than flying people around the region might scare stakeholders away. But it&rsquo;s not just the associates that are loss-making and in financial distress; there are the affiliates such as AirAsia X, and the parent AirAsia.Let&rsquo;s not forget the holding company Tune Group and its loss-making and indebted football club, Queen&rsquo;s Park Rangers, and the rather rushed sale of the now bankrupt Formula 1 team, Caterham. It all looks like a rather large mountain of debt teetering on the edge of default. Perhaps the real reason that there&rsquo;s resistance to recapitalising AirAsia is because Tune Group can&rsquo;t afford it.

AirAsia Berhad

AIRASIA: Just Answer the Questions