AirAsia Co-Founder States No State Aid Needed Amid Fuel Price Surge

AirAsia co-founder Tony Fernandes stated the airline could manage rising jet fuel costs without government assistance. The co-founder met Malaysian finance officials to discuss potential support, emphasizing that talks focused on costs and no aid had been requested.

Government officials expressed concern over AirAsia’s financial stability after jet fuel prices increased 66% in the second quarter.

AirAsia is seeking up to US$1 billion in international credit and RM700 million in local credit, facing a RM831 million quarterly loss and RM18.4 billion in liabilities. The airline also faces risks to jobs and air links.

Three sources confirmed Tony Fernandes met with Malaysia’s Finance Ministry officials two weeks ago to discuss possible government support for AirAsia, Southeast Asia’s largest low-cost airline.

The discussions highlight growing government worries about AirAsia’s financial health following a spike in jet fuel prices.