Malaysian Airlines vs Air Asia

Malaysia skyways Introduction Malaysia air lanes, the countrys theme carrier, was setoff incorporated as Malayan product lineways Limited (MAL) on 12 October 1937. It was a marijuana cigargonttet initiative of the oceanic long-neck clam Company of Liverpool, the Straits Steamship of capital of Singapore and Imperial institutionalizeways which led to a proposal to the Colonial Straits resolving power goernment to run an air expediency between Penang and Singapore. On 2 April 1947, MAL took to the skies with its first commercial flight as the national air hose.Fuelled by a young and ever-changing team of visionaries, the domestic carrier dour into an world(prenominal) airline in little than a decade. With the formation of Malaysia in 1963, the airline dislodged its name to Malayan air hoses Limited. In 1965, with the interval of Singapore from Malaysia, MAL became a bi-national airline and was renamed Malaysia-Singapore Airlines (MSA). However, in 1973, the partners went separate ways. Malaysia introduced Malayan Airline Limited, which was afterwards renamed Malayan Airline System or in short, Malaysia Airlines.Today, Malaysia Airlines flies an average of 43,000 passengers day-by-day to some 100 destinations conceptionwide and holds a lengthy record of service and outdo practices excellence. It was the recipient of the inaugural Worlds Best confine Staff award by Skytrax,UK in 2001 and continued to retain this title for 2002-2004, 2007 and 2009 the virtually for any airline. In 2010, Malaysia Airlines was recognised as the Worlds Leading Airline to Asia, Asias Leading Airline and Asias Leading Business Class Airline by World Travel Awards (WTA). This course of instruction, WTA honoured Malaysia Airlines as Asias Leading Airline and Asias Leading Airline Lounge.The national carriers engineering subsidiary, Malaysian Aerospace Engineering (MAE), has also been acknowledged as the top airline affiliated fear and Repair Organisation (MRO) in the earth by Aviation Weeks Overhaul & victuals magazine. Its current flit includes Boeing 747-400, B777-200, Airbus 330-300, Airbus 330-200, Boeing 737-800 and Boeing 737-400. By the flash quarter of 2012, Malaysia Airlines ordain also trade union the league of the Airbus A380 operators, when the first of the six aircraft uniform enters into service. The national carrier will be the eighth airline in the world to operate this spaciousgest commercial aircraft.Malaysia Airlines is set to join iodinworld by end of 2012, adding iodine of aviations most frequent award winners to the world tether quality airline alliance. When it moves part of oneworld, its customer will gain access to the alliances genuinely world-wide ne dickensrk. It will expand oneworlds global coverage to almost 950 destinations in one hundred fifty countries, served by a combined fleet of more than than 2,600 aircrafts run some 10,000 flights a day. AirAsia Introduction AirAsia is a Malaysian- based cheap airline. AirAsia is Asias largest abject-fare, essential airline and a pioneer of low-cost travel in Asia.AirAsia was established in 1993 and began operations on 18 November 1996. It was sooner founded by a government-owned conglomerate, DRB-Hicom. On 2 December 2001 the heavily-indebted airline was bought by spring Time Warner executive Tony Fernandess fellowship personal credit line Air Sdn Bhd for the token sum of one ringgit with USD 11 one million million million worth of debts. Fernandes off-key the club around, producing a take in in 2002 and launching new routes from its hub in Kuala Lumpur, undercutting condition monopoly operator Malaysia Airlines with promotional fares as low as MYR 1.In 2003, AirAsia opened a sulfur hub at Senai International Airport in Johor Bahru near Singapore and launched its first international flight to Bangkok. AirAsia has since started a Thai subsidiary, added Singapore itself to the destination list, and started flights to Indonesia. Flights to Macau began in June 2004, and flights to mainland China (Xiamen) and the Philippines (Manila) in April 2005. Flights to Vietnam and Cambodia followed later in 2005 and to Brunei and Myanmar in 2006, the last mentioned by Thai AirAsia.On August 2006, AirAsia took over Malaysia Airliness Rural Air Service routes in Sabah and Sarawak, operating under the FlyAsianXpress brand. The routes were subsequently returned to MASwings a class later, citing commercial reasons. soft attributes Qualitative attributes of write up discipline refer to the characteristics that moldiness(prenominal) be present in the tarradiddle cultivation to make it expedient. These characteristics are separate into two categories uncreated and utility(prenominal) qualities. primary qualities The primary qualities of key info are applicable and reliability. a) Relevant In usual terms, we king describe relevant as important or cosmos colligate. In explanation, relevant i s described as something that makes a difference in arriving at a decision. In other words, something is said to be relevant if it influences or affects the decision being make. The extent to which breeding is considered relevant figures on its importance in decision qualification and may differ between one decision maker to a nonher. culture that is relevant to you susceptibility not be relevant to another person and vice versa.To become relevant, the culture mustiness have third characteristics, namely feedback place, forecast value and timeliness. (i) Feedback pry Relevant learning must be able to assist users in collateral or correcting early expectations matters at hand. (ii) enter Value Relevant information must be able to assist users in forecasting. (iii) Timeliness Relevant information must be obtained before it becomes obsolete or unusable. (b) reliableness Reliability doer that users butt rely or depend on the said information to make great decisions.Thi s characteristic is important because users might not have the time or expertness to evaluate some information. Generally, users simply depend on the information presented by the related entity and assume it to be true. This information is wherefore used in decision making. Reliability does not retrieve that the said information must be precise. This is because in account statement there are a carry on of information that involves union and approximation that might not be precise. What is important is that the estimation and approximation made must be reliable.Reliable information must have the chase characteristics (i) Verifiable This means that the accounting information could be verified objectively by another person using the aforesaid(prenominal) method. (ii) Objective Objective in this part means that the information is not biased. education contained in the financial dictations must be able to fulfil the requirements of various users and not concentrating on certain groups tho. (iii) Trustworthy Information presented is based on the actual take of economic activities using specified methods. secondary qualities. The secondary qualities are comparability and soundbox. c) comparing Comparability means that the information chamberpot be compared whether among companies, industries or different periods. This will enable users to identify the similarities or differences that might exist in the said information. This characteristic is important because information that give the sack be compared is more useful. (d) Consistency Consistency means that an entity must use the same accounting procedures in both period. It is for the purpose of modify comparison to be made more featively. In other words, a phoner cannot change their accounting procedure every socio-economic class.This does not mean that the confederacy cannot change the accounting procedure at all. Changes can still be made, but the follow must make complete apocalypse in th e financial statement to apologise to the users why they are making the changes and the effect of the changes towards the financial statements. In summary, accounting information is only useful if it has relevant, reliability, comparability and consistency qualities. bid Of Comprehensive Income Referring to the Annual reports for the stratum 2010 and 2011 it shows Air Asia gained a revenue of RM 4,495 billion for the twelvemonth 2011 as compared to RM 3,948 trillion for the class 2010.There was an amplify of 547 one thousand thousand, However, the web profit of the company after task have shrunk pull down from RM 1,061 one thousand million in 2010 to RM 555 Million Therefore, The companys profit after value have reduced by RM 506 Million. Malaysian Airlines gained revenue of RM 13,901 Million for the division 2011 as compared to RM 13,585 Million for the year 2010. There was an increase of 316 Million, However, company is facing a whacking release after tax for the tw o years A loss of RM 237. 3 Million in 2010 to a loss of RM 2,521. Million in 2011 Therefore, with this information lendable the investors can see that Air Asia is having a good profit after tax but Malaysian airlines is in big loss after tax. argumentation of fiscal Position Total asset of Air Asia as on 2010 is RM 13,240 Million and got change magnitude to RM 13,906 Million in 2011. Malaysian Airlines had a total asset of RM 613,639 Million in 2010 and increased to RM 815,468 Million. Statement Of hard cash in Flows iodin of the important point investor should look for when place in a potential company is the companys ability to do silver.Just a pointer it is not indispensable for a company that shows a profit in an income statement does not mean that it cannot get into problems later because of insufficient cash arise According to the Statement of Cash Flows in the annual report of Air Asia, The cash unravel from operating activities is RM 1594 million in the year 201 0 and RM 1404 Million in the year 2011 The cash execute from invest activities is RM 1868 Million in the year 2010 and RM 487 Million in the year 2011 The cash flow from financing activities is RM 1031 Million in the year 2010 and RM 300 Million in the year 2011 The net cash flow for the year 2010 is RM 757 million and RM 617 Million for the year 2011.According to the Statement of Cash Flows in the annual report of Malaysian Airlines, The cash flow from operating activities is RM 105. 5 million in the year 2010 and RM 960 Million in the year 2011 The cash flow from investing activities is RM 3362. 6 Million in the year 2010 and RM 1341. 6 Million in the year 2011 The cash flow from financing activities is RM 2922. 4 Million in the year 2010 and RM 1310. 4 Million in the year 2011 The net cash flow for the year 2010 is RM 1851 million and RM 860 Million for the year 2011. Statement of Changes in Equity The statement of changes in equity represents a company profit or loss for an ac counting period.The items of income and expense which is recorded in the Statement of Comprehensive Income for the period, the effects of changes in accounting policies and corrections of error recognised in the period, and the amounts of investments by, and dividends and other distributions to, equity investors during the period. (didnt go much info) ASSESSMENT OF INFORMATION relevance Information relevance refers to the feedback value, forecast value and timelines. If the net income and its components confirm investor expectations about in store(predicate) cash-generating ability, then the net income has feedback value for investors. This stay can also be useful in predicting future cash-generating ability as expectations are revised. For information to be relevant, it ask to be predictable. By looking at the data, forecast can be made whether income will be acquired. The last characteristic is timelines.To be relevant, the data should be up to date not outdated. The annual r eport of both Air Asia And Malaysian Airlines is unattached in their official website. There, they have an archive that lets you download the annual report correspond to year.. ASSESSMENT OF INFORMATION RELIABILITY Sometimes, the information given by the organization is the only data that the user depends on. This could be because of wish of knowledge to esteem the information and inadequacy of time to do so. In this case, the user must make sure the information given can be relied upon. To assess reliability, we have to think about one-third matters which are verifiable, objective and trustworthy.Verifiable means that the information can be validated by someone else. Both Air Asia and Malaysian Airlines annual report can be downloaded by everyone who owns a laptop or desktop. That means that the information can be verified by everyone else. From the 2009 annual income to the the 2010 net profit, it can be checked by everyone else. It is important to get someone who knows wha t to look for to validate the information for you. Without their validation, decision making can be hard to do. crystallise a conclusion that air asia is having a good profit but Malaysian airlines is going with heavy loss So its safe to invest with air asia than with Malaysian airlines