Thai AirAsia lost money-The Facts
Bernama reported on February 4, 2008:
Thai Air Asia.... suffered losses of over one billion baht (10 baht=95 sen) last year due to penalties and maintenance costs after it cut short the lease period of its Boeing 737-300 fleet.
Chief Executive Officer Tassapon Bijleveld today described it as only a one-off loss as he was confident the airline will return to profit this year, with the target of carrying five million passengers as the arrival of five more Airbus 320 aircraft adds 20 percent to its seating capacity.
(http://www.bernama.com.my/bernama/v3/news_lite.php?id=312186)
FlightGlobal reported:
Low-cost carrier Thai AirAsia posted a loss last year as it faced more intense competition and higher costs.
This is according to the airline’s CEO, Tassapon Bijleveld, who told journalists in Bangkok that the carrier has had to pay lessors penalties for breaking leases on some of its Boeing 737-300s and had to spend money on maintenance to get these aircraft ready to be returned.
He says the penalties and extra maintenance costs are one-off expenses and he predicts the carrier will return to profit this year.
(http://www.flightglobal.com/articles/2008/02/06/221324/thai-airasia-posts-a-loss.html)
Despite all this Tony Fernandes says:
Thai AirAsia is expected to make additional investments amounting to one billion Baht over the next 10 years in line with its current plans to replace the existing ageing fleet of B737-300s with new Airbus A320 aircraft.
These will include expanded staffing, training/conversion costs, purchase of supporting equipment, acquisition of aircraft and engine spares and enhancement of maintenance capabilities to cater for a much bigger and newer fleet of aircraft.
This information was given by AirAsia in a statement today to clarify a recent news article entitled "Thai AirAsia Suffers One Billion Baht in Losses". The airline said Thai AirAsia's chief executive officer, Tassapon Bijleveld was misquoted in the said article.
Although Thai AirAsia is expected to slip into a loss position for the financial year 2007, Thai AirAsia has not lost one billion baht in 2007 as reported, it said.
A loss is expected mainly due to intense competition in Thailand through rampant undercutting combined with adverse effects of higher fuel cost, and once-off charge attributable to a change in accounting policy in relation to accounting for maintenance reserves to be in line with industry practice, it said.
AirAsia Bhd had already adopted the new accounting policy earlier, it said.
It also added that it was confident of the underlying business operations in Thailand and that its fundamentals were solid.
(http://www.bernama.com.my/bernama/v3/news_lite.php?id=312467)
Tassapon Bijleveld misquoted? By a number of different news agencies?To the extent that Tony Fernandes would have us believe? But of course-and white is black, black is white,and 1+1=20, or maybe 50, or perhaps 1 billion, well whatever AirAsia wants it to be.
Thai Air Asia.... suffered losses of over one billion baht (10 baht=95 sen) last year due to penalties and maintenance costs after it cut short the lease period of its Boeing 737-300 fleet.
Chief Executive Officer Tassapon Bijleveld today described it as only a one-off loss as he was confident the airline will return to profit this year, with the target of carrying five million passengers as the arrival of five more Airbus 320 aircraft adds 20 percent to its seating capacity.
(http://www.bernama.com.my/bernama/v3/news_lite.php?id=312186)
FlightGlobal reported:
Low-cost carrier Thai AirAsia posted a loss last year as it faced more intense competition and higher costs.
This is according to the airline’s CEO, Tassapon Bijleveld, who told journalists in Bangkok that the carrier has had to pay lessors penalties for breaking leases on some of its Boeing 737-300s and had to spend money on maintenance to get these aircraft ready to be returned.
He says the penalties and extra maintenance costs are one-off expenses and he predicts the carrier will return to profit this year.
(http://www.flightglobal.com/articles/2008/02/06/221324/thai-airasia-posts-a-loss.html)
Despite all this Tony Fernandes says:
Thai AirAsia is expected to make additional investments amounting to one billion Baht over the next 10 years in line with its current plans to replace the existing ageing fleet of B737-300s with new Airbus A320 aircraft.
These will include expanded staffing, training/conversion costs, purchase of supporting equipment, acquisition of aircraft and engine spares and enhancement of maintenance capabilities to cater for a much bigger and newer fleet of aircraft.
This information was given by AirAsia in a statement today to clarify a recent news article entitled "Thai AirAsia Suffers One Billion Baht in Losses". The airline said Thai AirAsia's chief executive officer, Tassapon Bijleveld was misquoted in the said article.
Although Thai AirAsia is expected to slip into a loss position for the financial year 2007, Thai AirAsia has not lost one billion baht in 2007 as reported, it said.
A loss is expected mainly due to intense competition in Thailand through rampant undercutting combined with adverse effects of higher fuel cost, and once-off charge attributable to a change in accounting policy in relation to accounting for maintenance reserves to be in line with industry practice, it said.
AirAsia Bhd had already adopted the new accounting policy earlier, it said.
It also added that it was confident of the underlying business operations in Thailand and that its fundamentals were solid.
(http://www.bernama.com.my/bernama/v3/news_lite.php?id=312467)
Tassapon Bijleveld misquoted? By a number of different news agencies?To the extent that Tony Fernandes would have us believe? But of course-and white is black, black is white,and 1+1=20, or maybe 50, or perhaps 1 billion, well whatever AirAsia wants it to be.
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