AirAsia in talks with Malaysian government over potential funding support: sources
AirAsia is in discussions with the Malaysian government over potential funding support, according to three sources familiar with the matter. The airline reported a net loss of RM831 million (US$204 million) for the second quarter ended June 30. The talks come amid growing concerns about the financial health of Malaysia's largest domestic carrier due to a surge in jet fuel prices.
The discussions centered on the prospect of the government backing AirAsia's fundraising efforts, provided it agrees to proposed conditions, according to the sources. However, AirAsia co-founder Tony Fernandes has clarified that no talks about financial assistance have taken place with the government. He stated that he meets with government officials regularly, but these discussions are not about financial assistance.
Fernandes is confident that AirAsia can navigate the situation without state assistance, as it did during the pandemic. He also noted that the company would consider help from any government in the countries where it operates.
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