MAS at the current price appears to be a good buy. Price has been sustainable at the RM1.00 level, with heavy collection spotted. Better financial results on the horizon perhaps?
Either way they should be set for take-off, as MAS has secured financing to purchase more aircraft with the help of the MOF. Comparing MAS versus AirAsia, I should say that MAS is still the better bet, as it has the official government "stamp of approval" and has little impediments when it comes to raising debt. Pension funds happily subscribed to its bonds, while I highly doubt that the Malaysian Government would bail-out AirAsia if it were to run into any troubles.
Reality is, airlines are a money-losing business. Profits? Sure! Just a mere shuffling around of numbers and figures. This business carries heavy debt, and thus the business is highly leveraged. You don't need me to tell you of the ill effects of high leverage in this type of business environment don't you?
Either way, my money's on MAS.
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