Saturday, August 30, 2014

MAS turnaround plan: Precisely why Airasia is a dangerous stock

I love Airasia as an innovative company. It has the leadership, management, right mindframe to be on top of the leaderboard among the airlines regionally. However, as I have always mentioned before airline business has a huge danger - continuous support from government due airline being considered for its sovereignty. No country can do without its national airline - that's the thought of most leaders.

The public can accept it if there is no national airline. Government officials cannot. The bailout of MAS is precise why Airasia always has that danger in among its competition. Imagine if Airasia is facing financial will just go bankrupt. It is unfair competition. MAS can fail but Airasia cannot. And in fact many other airlines regionally have failed - Thai Airways, Garuda, Japan Airlines. Qantas is facing some challenges as well.

How many times have there been rescue plans for MAS and I am quite it will not be the last.

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