No commitment for public funding support for AirAsia, Parliament told

KUALA LUMPUR: The government has not made any agreement or commitment to provide financial support to AirAsia, whether through guarantees, loans or injections of public funds, says the Finance Ministry.

The government is nevertheless monitoring developments in the aviation sector, including the impact of the West Asia crisis, global fuel prices and currency movements on airlines and air connectivity, the ministry said.

AirAsia remains an important part of Malaysia’s aviation ecosystem, carrying about 41 per cent of the 104.5 million passenger movements recorded at airports operated by Malaysia Airports Holdings Bhd (MAHB) in 2025, as well as nearly 60 per cent of domestic passenger movements, it added.

Air connectivity in Sabah and Sarawak relies substantially on AirAsia, which carried 62 per cent and 70 per cent, respectively, of total passengers in the two states last year, excluding short take-off and landing airports, the ministry said.

Among the airports with the highest proportion of AirAsia passengers were Sibu at 79 per cent, Bintulu at 77 per cent, Sandakan at 75 per cent, Kuching at 72 per cent, Tawau at 70 per cent, Miri at 63 per cent and Kota Kinabalu at 62 per cent, it added.

In Peninsular Malaysia, AirAsia accounted for 70 per cent of passengers in Johor, 56 per cent in Terengganu, 56 per cent in Langkawi, 49 per cent in Alor Setar and 46 per cent in Kelantan. The airline also carried three-quarters of passengers at KLIA2, the ministry said.

The ministry was responding to Ayer Hitam MP Datuk Seri Dr Wee Ka Siong, who asked whether Putrajaya was considering guarantees, loans or injections of public funds for the private airline group, in a written parliamentary reply on Monday (Oct 19).

The government had taken note of issues involving AirAsia, including losses reported in its latest quarterly financial results, which the company attributed mainly to a sharp rise in jet fuel prices following developments linked to the Middle East conflict, it said.

The ministry said it held regular engagements with players in the aviation ecosystem and sought views from industry representatives, technical experts and other parties, as it did for other economic sectors affected by the crisis.

Any request for government support from companies in any sector would be assessed based on national and public interests, the government’s fiscal sustainability and the protection of public funds, in line with existing laws and procedures, it added.

The government would not comment on speculation or figures reported by the media so as not to affect the market or the interests of workers, customers and other stakeholders, the ministry said. - THE STAR