Currently I sneak into the stock market again.The first target is AirAsia which is the most creative and attractive airline in Asia,I think.
I heard a lot of people had negative views on the company because both oil price and A(H1N1) are affecting the air industry and no one could stand aside.
However,I have my own opinion on it and just share with you here:
Well,it is not a nice year for the whole aircraft industry.The oil price is fluctuating and A(H1N1) is reversing the tourism and air industry too.However,I believe that would not badly affect AirAsia.Why?
Firstly,AirAsia is buying the oil at a current price(if I recall correctly).It adopts this method from the beginning of the year.I believe the company opted this method because they had foreseen the instability of the oil market within the short-mid term.That also indicates that the company could afford the fluctuation within a proper range as this should be the basic work for an experienced airline.Thus,the risk supposes to be controllable.
Secondly,A(H1N1) is a pandemic disease that no one could forecast it.It causes the recession of both tourism and air industry.The most important reason that AirAsia could win the nice market share is the ability to control the cost.Apparently,it’s also the major weakness of other carriers such as MAS.AirAsia still could expand their lines quickly as they make the business more efficiently.MAS,for example,will have to cut more less-profit lines in order to get a good balance.Thus,in a long run,the company which could get a biggest piece of cake will definitely gain the top position.
So I think if AirAsia is able to maintain the debt in a reasonable margin at this tough time,it will be more bright than now.
Remember,AirAsia is still young and vital!