Malaysia talks to rival airlines as it monitors AirAsia's financial health: Report
The government is weighing support as AirAsia seeks up to $1 billion in debt financing and reported a second-quarter net loss of 831 million ringgit.
- On Wednesday, Malaysia's government began evaluating contingency plans for AirAsia, asking rivals Malaysia Airlines and Batik Air whether they could absorb the low-cost carrier's domestic market share amid monitoring of its financial health.
- Rising jet fuel costs surged 66% last quarter to an average of $183 a barrel, while AirAsia faces 18.4 billion ringgit in current liabilities, intensifying financial pressure that prompted the government's contingency planning.
- AirAsia reported a net loss of 831 million ringgit and owes Malaysia Airports Holdings Berhad at least 500 million ringgit in fees, though rivals Malaysia Airlines and Batik Air prefer organic expansion over acquiring the airline's operations.
- The finance ministry engaged Alton Aviation Consultancy to assess the airline's funding requirements, while officials discussed providing government endorsement to help AirAsia raise capital from external investors.
- Deputy Group CEO Farouk Kamal stated that AirAsia remains focused on maintaining stable operations, noting that "all material updates regarding our business and fleet strategy are disclosed transparently through official exchange filings and corporate announcements.
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Malaysia talks to rival airlines as it monitors AirAsia's financial health, sources say
KUALA LUMPUR/HONG KONG — Malaysia's government has asked Malaysia Airlines and Batik Air whether they could absorb AirAsia's domestic market share, said two people with knowledge of the matter, as part of what they described as scenario planning while authorities monitor the financial health of Southeast Asia's largest low-cost airline.Discussions between the government and Malaysia Airlines and Batik Air have increased in recent weeks, the peop…
EXCLUSIVE: Malaysia talks to rival airlines as it monitors AirAsia's financial health, sources say
Malaysia's government has asked Malaysia Airlines and Batik Air whether they could absorb AirAsia's domestic market share, said two people with knowledge of the matter, as part of what they described as scenario planning while authorities monitor the financial health of Southeast Asia's largest low-cost airline.
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