100 Word Discussion Reply

 

Hello class,

AirAsia Group is an example of a company in the airline industry that has been struggling with cash flow issues in recent years. Because of the effect that the COVID-19 epidemic had on the aviation industry, the corporation declared a financial loss of RM 767.43 million (which is equivalent to around 170 million USD).The AirAsia Group has carried out a number of preventative actions. To begin, the corporation has been working to reduce expenses by, among other things, lowering staff pay, renegotiating contracts with vendors, and consolidating business processes. Second, in order to broaden its base of revenue, the corporation has been investigating potential new sources of income, such as the operation of cargo. Third, the corporation has been actively generating capital via a variety of channels, including the issuing of bonds and the sale of assets. Air Asia Group was also successful in obtaining a loan from the government of Malaysia in the amount of RM 300 million. Overall, the way that the AirAsia Group has taken to solve its issues with cash flow has been a mix of cost reduction, expanding into new income streams, and financing. The firm was able to successfully manage the adverse business climate brought on by the COVID-19 epidemic and enhance its cash flow situation as a result of the actions that were taken. However, the aviation industry is still dealing with substantial problems, and it will be essential for businesses such as AirAsia Group to continue to adapt to changing conditions and come up with innovative solutions if they want to continue being profitable and competitive.

-Gabe

Resources:

Reuters (2020). Malaysia’s AirAsia secures $72 mln loan from Sabah Development Bank. Retrieved from https://www.reuters.com/article/airasia-group-loan/malaysias-airasia-secures-72-mln-loan-from-sabah-development-bank-idUSL4N2HE35Z

Salim, S (2021) AirAsia X posts largest quarterly net loss, plans more job cuts. Retrieved from https://www.theedgemarkets.com/article/airasia-x-reports-rm567b-net-loss-quarter-ended-march-31-2021

Schurman, R (2023). AirAsia X continues to recover quarter by quarter. retrieved from https://airinsight.com/airasia-x-continues-to-recover-quarter-by-quarter/

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