We are negatively surprised by the group’s latest move to expand its business ventures into the banking sector. In our view, this latest subscription seems to be a stretched extension of its core gaming operations. Having said that, we note that the investment of RM28m is small as it makes up <2% of the group’s net cash balance as at end-2009.
Airbus has confirmed that A380 deliveries to Malaysia Airlines has been delayed for a few months. “We can confirm that there will be a delay in delivery of its first A380 by a few months,” spokesman Sean Lee said by phone from Singapore. A new delivery schedule is being finalised.
- Deliveries will now begin in the first half of 2012, from 2011 previously. MAS said in December that it had been awarded RM330m in compensation from Airbus for previous delays, but additional compensation for the new delay is not yet known. (Bloomberg)
Thai AirAsia has reduced flights on its Bangkok-Taipei and Bangkok-Guangzhou routes to reflect weakened demand largely caused by Thailand's political turmoil.
- From last Saturday, the low-cost carrier has cut flights on the Taipei route from daily to four flights a week and Guangzhou to three flights a week from daily, said chief executive Tassapon Bijleveld. Traffic from China and other North Asian states has continued to plunge as their respective governments have advised citizens against travelling to the kingdom as violent political protests show no signs of stopping.
- Mr Tassapon indicated the political mayhem may influence the airline's plan to start daily services from Bangkok to New Delhi and Kolkata in June.
- Thai AirAsia is also reducing frequencies on two domestic routes. The Bangkok-Chiang Mai route will be reduced to five flights a day from six now, and Bangkok-Krabi will drop to three flights from four at present. (Bangkok Post)
- "It's not fair for another airline to want to ride on the investments made by us. Instead, they need to be able to develop their own routes," he said. For MAS, it may take up to five years before any new route is profitable as it must create awareness about that destination. (BT)
Malaysia would be preparing to defend its seat at the International Civil Aviation Organisation Council (ICAO) at the organisation's next elections in September this year. Transport Minister Datuk Seri Ong Tee Keat said retaining the seat was important to the country as the council was instrumental in deciding matters related to civil aviation standards and regulations.
- He said Malaysia will have to strive and work hard to retain their seat at the ICAO council this year as other Asia Pacific regions have already shown interest in contesting for the seat. (BT)
- The detailed EIA of the proposed site is in progress and the final report is expected to be submitted by the middle of the month to the Department of Environment. (BT, Bernama)
DRB-Hicom is looking into assembling Audi vehicles locally after recently securing franchise of the German marque in Malaysia. Group director of automotive Datuk Nik Hamdan Nik Hassan, however, stressed that any local production will hinge on it registering a minimum annual sales volume of 1,000 cars to make the plan viable.
- The plan seems imminent as the group is confident of selling some 1,000 units of completely built up (CBU) units or fully-imported Audi vehicles this year given the strong demand for models like the A4 sedan and Q5 sports utility vehicle. (BT)
- ED Datuk Anthony See Teow Guan declined to reveal investment cost but on average it cost RM100m to set up a tin can factory in Malaysia. Another possible destination is Thailand but it will wait until the ongoing political storm in the country subsides before making a decision.
- "Prospects for the coming years are good due to Malaysia's status as a halal hub giving the company an edge to supply to Islamic countries such as Indonesia and the Middle East," See said. (BT)
Malaysia Airports will become the first international airport operator in Southeast Asia to use the TrackJet system on its runways to boost airport safety and cut maintenance costs. TrackJet is a high-pressure precision water jet system that uses little water, thus offering new operating conditions for airport runways and taxiway rubber, paint removal and maintenance. The system will boost the lifespan of the touchdown zone from eight to 12 years and the runway from 12 to 18 years. (BT)
YTL Corp’s Pangkor Laut Resort expects more business this year from Asia-Pacific on optimism that people will continue to travel with signs of the economy improving. Jeffrey Mong, the resort manager, said it has more bookings from Malaysia, South Korea, Japan, India, Singapore and Australia. "We are running on an average 70% occupancy. The best years for us were 2005 and 2006, with above 80% occupancy and we hope to get there," Mong added. (BT)
Scomi Oiltools, a subsidiary of Scomi Group, is aiming for 10% yoy growth over the next five years, given the positive signs of a world economic recovery. President Steve Bracker said that he was confident of achieving the target as the company has the capabilities and strong assets in place. He added that Scomi Oiltools saw potential in doing business in West Africa and East Asia, including Malaysia. (BT)
Several accounting firms have raised red flags at six companies last Friday, indicating they could not complete their audits properly. The companies are Nam Fatt Corp, Patimas Computers, Mangotone Group, Wawasan TKH Holdings, Luster Industries and KBB Resources. Five of them had their accounts qualified while Luster's auditors did not qualify its opinion but pointed out to shareholders that the company's fate rests on an approval by Bursa Malaysia. (BT)
Tanjung Offshore saw its unaudited net profit for FYE12/09 differ by almost half of its audited net profit due to a reversal of income recognised from claims made by its 20%- owned associate, Cendor Mopu Producer Ltd. It reported an unaudited net profit of RM6m for 2009, but the audited results for the period was RM3m. (BT)
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