Homework Help is Here – Start Your Trial Now!
Business
Finance
Read the article below and answer the questions.   Required: a. What is leverage? Explain the different types of leverage? b. From the article, the Chief Executive Officer (CEO) of AirAsia Group Berhad is trying to cope with what type of leverage? Please discuss THREE (3) points to support your argument.

Read the article below and answer the questions.   Required: a. What is leverage? Explain the different types of leverage? b. From the article, the Chief Executive Officer (CEO) of AirAsia Group Berhad is trying to cope with what type of leverage? Please discuss THREE (3) points to support your argument.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

Read the article below and answer the questions.

 

Required:
a. What is leverage? Explain the different types of leverage?

b. From the article, the Chief Executive Officer (CEO) of AirAsia Group Berhad is trying
to cope with what type of leverage? Please discuss THREE (3) points to support your
argument.

HO ME BLOOMBERG AirAsia to return planes to lessors, shrink fleet, says CEO BY LIZ LEE Reuters KUALA LUMPUR (Oct 8): Malaysia's AirAsia Group Bhd is looking to slash doz- ens of planes from its fleet by returning air- craft to lessors, Group Chief Executive Tony Fernandes said on Thursday. "We are not going to buy new planes and we are going to return as many as we can. I estimate by the end of next year we'll be flying 180 planes," Fernandes told report- ers. The group currently has 245 aircraft. He said the group is already looking at returning 22 planes from this year. Fernandes said AirAsia remains in talks plans to restructure US$15.3 billion of debt. with planemaker Airbus about reducing pending orders. "I don't see us getting into a position considered fundraising to fund expansion where we want to buy planes for a number of its digital arm. of years. And even if we want to buy planes, there will probably be a lot of cheap second- been approached by a ÚS firm offering to launched on Thursday. hand planes," Fernandes said. The budget carrier, like other airlines, has been hit hard by travel restrictions due able. An American firm has come forward to the pandemic. This week it shut its Japan operations and based on your data," Fernandes said, de- its long-haul arm AirAsia X Bhd announced clining to elaborate. The group has long talked about lever- AirAsia is also looking to raise around aging its large user data base to expand its US$600 million in capital this year, and has business. AirAsia Digital, its newły rebranded dig- ital arm, houses businesses such as travel Fernandes said the group has recently and lifestyle platform airasia.com which it Its other businesses include fintech unit "I've been saying our data is very valu- BigPay, logistics unit Teleport, fast food busi- ness Santan and agriculture e-commerce lend that business up to US$1 billion. and said, you know, we would lend to you platform OurFarm.
Transcribed Image Text:HO ME BLOOMBERG AirAsia to return planes to lessors, shrink fleet, says CEO BY LIZ LEE Reuters KUALA LUMPUR (Oct 8): Malaysia's AirAsia Group Bhd is looking to slash doz- ens of planes from its fleet by returning air- craft to lessors, Group Chief Executive Tony Fernandes said on Thursday. "We are not going to buy new planes and we are going to return as many as we can. I estimate by the end of next year we'll be flying 180 planes," Fernandes told report- ers. The group currently has 245 aircraft. He said the group is already looking at returning 22 planes from this year. Fernandes said AirAsia remains in talks plans to restructure US$15.3 billion of debt. with planemaker Airbus about reducing pending orders. "I don't see us getting into a position considered fundraising to fund expansion where we want to buy planes for a number of its digital arm. of years. And even if we want to buy planes, there will probably be a lot of cheap second- been approached by a ÚS firm offering to launched on Thursday. hand planes," Fernandes said. The budget carrier, like other airlines, has been hit hard by travel restrictions due able. An American firm has come forward to the pandemic. This week it shut its Japan operations and based on your data," Fernandes said, de- its long-haul arm AirAsia X Bhd announced clining to elaborate. The group has long talked about lever- AirAsia is also looking to raise around aging its large user data base to expand its US$600 million in capital this year, and has business. AirAsia Digital, its newły rebranded dig- ital arm, houses businesses such as travel Fernandes said the group has recently and lifestyle platform airasia.com which it Its other businesses include fintech unit "I've been saying our data is very valu- BigPay, logistics unit Teleport, fast food busi- ness Santan and agriculture e-commerce lend that business up to US$1 billion. and said, you know, we would lend to you platform OurFarm.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Managing Agency Conflict
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS