‘We do not need rescue’: AirAsia's Fernandes denies reports on Malaysian government seeking rivals’ help
The airline can withstand fuel cost spikes as its current crisis is less severe than Covid, he adds
Tony Fernandes, co-founder of AirAsia, has denied reports that Malaysia's government has approached rival airlines for assistance amid the carrier's financial crisis. Speaking at a press conference in Bangkok on Friday, Fernandes dismissed the reports as "the most ludicrous statement" he had heard in his 25-year career at the company.
AirAsia holds about 60 percent of Malaysia's domestic market, and Fernandes insisted that no one could replace AirAsia's fleet, cost structure, brand, or network. He emphasized that the airline has not requested a government bailout, has no plans to lay off workers, and has the support of its creditors. AirAsia's fuel costs have surged 66 percent since the Iran war, and the airline has no hedging in place, contributing to its financial strain.
Despite the challenges, Fernandes dismissed concerns about the airline's future, noting that AirAsia had weathered more severe crises in the past, including the Covid-19 pandemic. The carrier expects to raise more than US$1 billion by December or January for debt restructuring, primarily through international debt markets and local credit facilities.
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