Fernandes open to assistance for AirAsia, but says no bailout talks
He says AirAsia is working to ride out the crisis by cutting costs and adjusting its operations while using AI to reduce fuel consumption and improve revenue.
Tony Fernandes, co-founder and adviser of AirAsia Group Bhd, expressed openness to assistance for the airline if offered, but emphasized that there are no bailout talks with the government. AirAsia survived the Covid-19 pandemic without government aid and is currently grappling with rising fuel costs. Fernandes clarified that bailouts are typically for mismanaged companies seeking a cash infusion, and AirAsia does not fall into that category.
He stated that AirAsia has sought other forms of assistance, such as working with Malaysia Airports to reduce costs and receiving credit from Petronas. The airline is also cutting costs, adjusting operations, and using AI to mitigate the impact of high fuel prices. AirAsia's cost-saving measures include returning fuel-intensive aircraft, discontinuing unprofitable routes, and scaling back growth in Indonesia and the Philippines.
Fernandes highlighted that the company operates under the assumption that oil prices may remain high, necessitating adjustments to its financial strategy. Despite recent losses of RM831 million and cash reserves of RM954 million, Fernandes remains optimistic about AirAsia's recovery prospects, believing the company can emerge stronger after withstanding various crises.
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- Fernandes open to assistance for AirAsia, but says no bailout talks freemalaysiatoday.com
