Pay Up!

18 07 2008

Show me the money!!!

My KB, Mimi Arep has posted something that caught my eyes. I know I have to blog about this as it’s going to be a massive issue. From reliable sources, I’ve heard that AA has been granted a great amount of tax incentive from our government, for its CAPEX in purchasing aircrafts, but still has not never paid any taxes to the government. Also from day one starting business, never paid any charges and fees to MAS, MAHB and the authorities. The tax incentive AA received as from July-December 2007 is amounting to RM174 Million.

From my own estimation, for every dollar AirAsia spent in purchasing aircrafts, the tax incentive incurred is enough for it to pay the loan interest for at least 3 years! As the repayment period of AirAsia’s loans are only 12 years, the tax-incentives had actually helped to cover a substantial part of its financial cost.

So, why not  setteled the RM110 million the total debt owed to MAHB?

In fact, the fast expansion of AirAsia, leveraging on financing facilities, is one of the factors that enable AirAsia to maintain its profitability. Because in the highly competitive LCC industry, only the lowest cost player (through effective cost reduction, economic scale, and fast penetration into the market) will survive and prosper.The question here is, does AA barely make any profit?

Ted Baker

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2 responses

18 07 2008
Mike Harmon

Would you be interested in exchanging blogrolls links with my site? Please email me if you are interested

18 07 2008
areps

AA didnt make profit. Propah semata. Sedangkan liabiliti AA berjuta2 lagi. And i bit keliru d sini ya. Y EPF aggressively mopping the share? Didnt they make any study? Or ada ARAHAN?

I notice TDM ada sentuh pasal ni sipi2. Pasal MV Agusta and AA sale 9 cent itew.. Bisnes 9 cent tapi dapat untung???? WTF…

TDM memang cekap.

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