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AirAsia in talks with Malaysian government over potential funding support: Report
Tony Fernandes said AirAsia is seeking fundraising support as jet fuel costs surge 66% and the carrier posted a RM831 million quarterly loss.
- AirAsia co-founder Tony Fernandes met with officials from Malaysia's finance and transport ministries two weeks ago to discuss potential government support for the airline's fundraising efforts, according to three people with knowledge of the matter.
- Jet fuel costs surged 66% in the second quarter to an average of US$183 a barrel, stemming from the US-Israeli war on Iran, prompting government concerns about the airline's financial health.
- Fernandes said discussions focused on aviation costs like airport charges and fuel, not financial assistance. He stated he is "100%" confident AirAsia can navigate the situation without state aid, as it did during Covid-19.
- Discussions centered on government backing for fundraising provided AirAsia agreed to proposed conditions, which remain under discussion. Representatives from Alton Aviation Consultancy attended the meeting to assess the airline's funding needs.
- AirAsia controls about 60% of Malaysia's domestic aviation market and targets US$1 billion in fundraising between December and February to refinance loans. Its stock has lost more than 70% of its value in 2026.
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Loke emphasized that until now no financial agreement had been reached between the Malaysian government and AirAsia.
Coverage Details
Total News Sources13
Leaning Left2Leaning Right6Center3Last UpdatedBias Distribution55% Right
Bias Distribution
- 55% of the sources lean Right
55% Right
L 18%
C 27%
R 55%
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