No decision yet on financial aid for debt-hit AirAsia, says Loke

KUALA LUMPUR, Oct 28 — The fate of providing financial assistance to AirAsia Group Bhd, currently facing financial difficulties, remains undecided, according to Transport Minister Anthony Loke Siew Fook. Both the Ministry of Transport and the Ministry of Finance are currently evaluating various proposals aimed at helping the airline.

Loke emphasized that the government's primary concern is to ensure the airline continues its operations, thereby maintaining connectivity, as the bankruptcy of a major airline would have severe consequences. He cited the potential job losses and disruption of connectivity as reasons for the government's urgent intervention. In the Dewan Rakyat while concluding the debate on the Transport Ministry's 2027 Budget, Loke reassured the parliament that the government is doing everything possible to prevent such a situation from occurring.

The Transport Minister addressed Khairil Nizam Khirudin (PN-Jerantut) who voiced concern over the carrier's massive debt and its 26,000 employees, asking whether the Transport Ministry was contemplating any form of assistance.