- Malaysian government asks carriers about absorbing AirAsia market share
- Malaysia Airlines and Batik Air Malaysia consulted
- AirAsia owes Malaysia Airports at least MYR500m
- AirAsia seeking up to $1bn in financing
- Carriers prefer organic expansion over lease absorption
The Malaysian government has reportedly asked Malaysia Airlines and Batik Air Malaysia whether they could absorb the domestic market share of AirAsia as part of contingency planning amid concerns over the low-cost carrier’s finances. However the two carriers reportedly stated they would only take over AirAsia’s operations on a large scale if they could also assume its aircraft leases while preferring organic expansion to absorb its routes and passengers.
AirAsia reportedly owes state-linked airport operator Malaysia Airports at least MYR500m ringgit ($123.5m) for services including landing and parking fees. The low-cost carrier has previously stated it was seeking up to $1bn in international debt financing and MYR700m ringgit ($172.5m) in local credit facilities.
