Tony Fernandes says AirAsia has not discussed any bailout with the government, citing liquidity of over RM1 billion and no sustainability concerns.
KUALA LUMPUR: AirAsia Group Bhd has not had any discussions with the government over a bailout and remains confident in its liquidity and business sustainability, said co-founder and adviser Tan Sri Tony Fernandes.
“There have not been any discussions with the government. We do not need a rescue, bailout or whatever.
“Our liquidity is over RM1 billion. There’s no question about sustainability,” he said during a virtual media briefing on AirAsia’s business update today.
Fernandes also dismissed news reports that the government had approached other airlines about potentially absorbing AirAsia’s domestic routes and passengers.
“My sources have told me that the government never held any discussions with anyone, and they said it makes no sense even to talk about it. This is from the highest levels.
“You cannot automatically take AirAsia’s capacity. You have to have our cost structure to offer our fares. You cannot just say that another airline is going to take AirAsia’s capacity,” he added.
On Wednesday, a Reuters report cited people familiar with the matter as saying that the government had asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic market share as part of scenario planning, while authorities monitored the low-cost carrier’s financial health.
“Officially, I am saying to you that there is nothing from the Malaysian government. In the future, if the government helps us, great,” he said.
Fernandes said the current challenge due to rising jet-fuel prices is less severe than the COVID-19 pandemic because AirAsia is able to continue its operations, and passenger demand remains strong.
“COVID-19 was far, far worse than what we are dealing with right now. During COVID-19, we could not fly, but we can fly now, and demand is very strong,” he added.
