Financial sabotage or intentional destabilization of AirAsia Group Bhd through persistent negative news?
The single piece of news - a report claimed the Malaysian government was planning for a worst-case scenario and asking rivals like Malaysia Airlines and Batik Air if they could absorb AirAsia's domestic routes - triggered a 70% stock crash year-to-date.
This is not the 1st time.
11 years ago, in June 2015, a research report published by GMT Research caused a sharp 25% drop in AirAsia's share price.
The report titled `Sell: New Dog, Old Tricks’ questioned AirAsia's accounting methods claiming the airline boosted profits by roughly 39% through related-party transactions with its associates, which it argued was unsustainable and risky.
Short-selling volume surged significantly following the allegations with the stock dropping 19.5% over the month of June 2015.
Tony Fernandes aggressively hit back at the report in public interviews, famously calling the research "garbage".
He claimed the report was a coordinated attempt by a short seller to create market mayhem for profit.
He maintained that AirAsia never failed to disclose aircraft leasing fees or operating charges collected from its associates.
To prove the airline was not "teetering on default" as critics claimed, AirAsia detailed concrete plans to crystallize the value of its assets:
- AirAsia announced plans to publicly float its loss-making associates in Indonesia and the Philippines by selling 20% stakes, valuing the entities at $700 million and $600 million respectively.
- Tony Fernandes claimed that the group could easily raise $1 billion through sale-and-leaseback transactions on its extensive fleet, alongside existing investments worth $500 million, making any urgent recapitalization unnecessary
AirAsia famously survived the COVID-19 pandemic without a direct state bailout.
In response to the latest attempt, again, Tony Fernandes came out swinging on 18 Sept 2026, dismissing the reports of financial distress and government bailout discussions as ludicrous and irresponsible.
He emphatically states that AirAsia Group Bhd maintains over RM1 billion in available cash, the airline has never sought or discussed any rescue package or government intervention with Putrajaya, is raising US$1 billion from international markets alongside RM700 million locally strictly on refinancing existing loans and reducing interest expenses rather than acquiring fresh capital and the carrier expects to carry 65 million to 70 million passengers, outpacing general market doubts.
Reuters which reported that the Finance Ministry had hired Alton Aviation Consultancy to assess AirAsia's funding needs as it weighs whether to provide support given the airline's role as a major employer and provider of affordable air connectivity across the region did not do a follow up on the response from Tony Fernandes to their report.
Alton Aviation Consultancy did not confirm the report that they were appointed by the Ministry of Finance.
Understood.
But the Ministry of Finance has an obligation to the public as tax payers’ monies will be used to pay any fees payable to Alton Aviation Consultancy.
The report from Reuters is unverifiable and the shareholders of AirAsia are left holding the short end of the stick with the huge losses from the drop of their shareholdings on AirAsia.
Thus, the Ministry of Finance has an obligation to inform the Malaysian public.
Why no one asked whether the presistent attack with news on a potential demise of AirAsia was an intentional sabotage?
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