Amid concerns over AirAsia’s financial health, Malaysia talks to rival airlines
AirAsia, Southeast Asia's largest low-cost airline, has been hit by soaring jet fuel costs stemming from the U.S.-Israeli war on Iran.
KUALA LUMPUR/HONG KONG - The Malaysian government has approached Malaysia Airlines and Batik Air to assess if they could take on AirAsia's domestic passenger traffic, according to two sources familiar with the matter. This comes as part of "scenario planning" as authorities keep a close eye on the financial well-being of Southeast Asia's leading low-cost carrier.
Recent conversations between the government and the two airlines have intensified, sources revealed, due to mounting worries about the financial strain AirAsia is under. The airline has been grappling with skyrocketing jet fuel expenses, which spiked by 66% in the second quarter, reaching an average of $183 per barrel following the U.S.-Israeli conflict with Iran.
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