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m the following cash flow statement, the readers may notice that there is a significant increase in the repayment of borrowings, whereas an approximate 97% increased (from year 2008, RM 300,780,000 to year 2009, RM 593,131,000) in year 2009, compared to year 2008.

Increasing deposits pledged as securities. From the following cash flow statement, the readers may notice that there is a significant increase in the deposits pledged as securities, whereas an approximate 1.5 times increased (from year 2008, RM 2,019,000 to year 2009, RM 5,112,000) in year 2009, compared to year 2008.

Question 2(b). Based on your commentary about, explain based on your analysis of the cash flow statement whether you would consider investing in the company or not.

Answer for Question 2 (b): Investor's opinions on AirAsia Berhad.

From the analysis above, the writer is very convinced with AirAsia's profitable future, and thus the writer would consider investing in the company. The following part highlights the success activities in AirAsia which attracting the writer's confidence:

(i) Operating Activities of AirAsia

Within a short period - approximate one year, AirAsia successfully converted its loss to profit, through the significant revenue increased from the increasing passenger seat sales, aircraft operating lease income, travel and tour operations, and other revenue such as extra charge for excess baggage, baggage handling fees, freight and cancellation, documentation fees reducing inventories on-hand.

As a low-cost airline with the slogan of Now Everyone Can Fly, AirAsia is trying best to provide lower and lower price air tickets with best services to airline passengers. The increasing passenger seat sales proved that the huge investment spent on Airbus SAS planes is worthy and thus the investors are more confidence on the decisions made by the directors, even thought there was crisis in the previous year.

(ii) Investing Activities of AirAsia

Besides, due to the bad experiences in the previous year, AirAsia becomes more careful in its investing activities. It started reducing the investment in additional property, plant and equipment at the same time fully utilise the current assets on-hand. Furthermore, there is also a significant cut-off in long term repayment, where save AirAsia for approximate RM 48,000,000 investment expenses.

Although there is an excess cash flow from operating activities, AirAsia is becoming more caution on every investing activity it involves.

(iii) Financing Activities of AirAsia

Regarding the financing activities of AirAsia, the writer would like to highlight about the significant decrease in the proceeds from borrowings. Since AirAsia is gaining quiet a lot in its operating activities, reducing in borrowings can be considered as a good decision due to it reduce the risks faced by the business.

Currently, AirAsia's borrowings are secured by Assignment of rights under contract with Airbus over each aircraft, Assignment of insurance of each aircraft, Assignment of airframe and engine warranties of each aircraft. Therefore, reducing the dependences on borrowings is a good decision for AirAsia to retain the confidence of the investors.

Instead of depending on borrowing from outsiders, AirAsia is now more depending on the financial source from allotment of 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。