AirAsia-Further questions regarding its balance sheet

According to Wee Choo Keong MP:
Wee Choo Keong [Wangsa Maju] challenged the Minister of Transport and stated that AirAsia actually owed MAB more than RM80 million, Petronas for fuel RM20 million and the Government for RM35 million for the repairs of 7 aeroplanes, which MAS took over from AirAsia when AirAsia gave up Rural Air Services (RAS). What actions will the Minister of Transport take pertaining to the said debts?

The Minister of Transport replied that MP for Wangsa Maju got the figures wrong. The Minister of Transport has confirmed in Parliament this evening that from 2002 until 31 March 2008 AirAsia owed about RM110 million to MAB for all services at all airports. The Minister went further to state that AirAsia is disputing its debt of RM110 million to MAB and this matter has been sent to the Ministry of Finance to resolve.
(http://weechookeong.wordpress.com/2008/05/20/minister-of-transport-confirms-in-parliament-airasia-owes-mab-rm110-million/)


According to Tony Fernandes:

We owe MAB nothing, they owe us.
(http://rockybru.com.my/2008/12/happy-new-year-from-boss-of-malaysian.html)

The question then is whether the above debt of RM 110 million is reflected in AirAsia's balance sheet as a liability, if at all.

On the issue of its associates, I have already noted that earnings, and retained profits, are overstated due to the exclusion from consolidated earnings of AirAsia's interest in the losses of its associates, PT AirAsia and Thai AirAsia. (see http://sahathevan.blogspot.com/2008/09/airasias-rm-24483-million-loss-for-june.html)

Given the current interest in AirAsia's balance sheet, readers should note that AirAsia's balance sheet discloses investments in its associates to be only RM 29,000.
The amount due from associates at 30 June 2008 however is RM 128,089,000; up from RM 84,407,000 at 31 December 2007.
What justifies this accounting treatment, as well as other matters raised here , are issues that one hopes Tony Fernandes would make clear in a press release, given his recent assertion of openness (http://rockybru.com.my/2008/12/happy-new-year-from-boss-of-malaysian.html)

Comments

  1. ketamDecember 29, 2008 at 9:29 PM

    and you think i care?? its a business la kawan..kalau dia rugi dia bungkus tikar la.. kalau dia hutang nanti dia bayar la.. dan kalau AirAsia tak operate i dont think MAB akan dapat show INCOME for RM110 million in their FS...

    as long AirAsia offer tiket murah samapi ke mati aku sokong dia..

    and to you who envy AirAsia jangan la naik AirAsia kalau dah tak suka.. dan because you banyak duit nak naik MAS or SIA or any other Airline plz do so bcoz AKU HANYA MAMPU BELI TIKET AIRASIA SAHAJA...

    ReplyDelete
  2. JockyDecember 30, 2008 at 9:23 AM

    There are people who do not care what the story is so long as they can "fly on the cheap".

    These people see Tony Fernandez as a "Robin Hood" which is a shame.

    You are raising awareness and encouraging people to see things with some degree of depth. Keep it up.

    ReplyDelete
  3. AnonymousApril 8, 2009 at 5:40 PM

    I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.


    Joannah

    http://2gbmemory.net

    ReplyDelete

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