Fernandes shoots down talk of govt bailout for AirAsia
The airline’s co-founder says it has never sought government aid, and is seeking US$1 billion to refinance loans, not US$3 billion in fresh capital.
Tony Fernandes, co-founder and adviser of AirAsia Group Bhd, has firmly rejected reports of a government bailout for the low-cost carrier. Fernandes stated in an online media briefing that AirAsia had never sought financial assistance during its 25-year history and dismissed claims that the government had approached rival airlines to absorb some of its domestic routes.
He emphasized that no such discussions took place and affirmed that the government had confirmed this to him. Fernandes further explained that AirAsia's sustainability is rooted in its unique cost structure, network, and market position, which cannot be replicated by other carriers. He dismissed the notion that another airline could simply take over AirAsia's operations and replicate its low-cost model.
Additionally, Fernandes clarified that AirAsia is not seeking US$3 billion in fresh capital; instead, it is looking to refinance existing loans to repay some creditors. The airline's loans are denominated in US dollars, while its earnings are spread across the ringgit, Thai baht, and Indonesian rupiah, making refinancing a strategic move to better align debt with earnings currencies.
Fernandes reiterated his preference for being debt-free, emphasizing that he and the company do not want additional debt.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Fernandes nafi AirAsia mohon ‘bailout’ kerajaan freemalaysiatoday.com
