Tony Fernandes thinks that his loss making and financially distressed Philippine and Indonesian associates should command a market capitalisation of US$1.3bn which is more than the current market capitalisation of AirAsia (US$1.1bn). He’s certainly flying high using these valuations. Mind you, not many of AirAsia’s past optimistic forecasts appear to have materialised. Why should these? He’s also come out with a number of other assertions around AirAsia’s disclosure and past financial performance which we disagree with. We think AirAsia is loss making when profits generated from associates are stripped out and it needs a MYR7bn (US$1.9bn) recapitalisation. Until management answers some…
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