Capital A chief refutes report that AirAsia needs govt bailout, calls it ‘irresponsible’
KUALA LUMPUR, Sept 18 — Capital A CEO and AirAsia co-founder Tan Sri Tony Fernandes today refuted a Reuters report that said the company he co-founded needs government help to absorb the budget carrier’s domestic market share.
Speaking at a media briefing from Bangkok, Thailand, Fernandes called the report “irresponsible” and that it contained inaccuracies that did not factually reflect the aviation giant’s financial situation.
“Nothing, nothing, we are not getting (anything) from the government, I don’t know where this story comes from,” Fernandes replied when asked to comment on the report.
“My top sources said no such conversations happen… kill it (the story) already. We do not need rescuing or bailouts whatsoever,” he added.
Reuters ran a story two days ago quoting sources who claimed Malaysia’s government had asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic market share.
The talks were said to be a part of what the sources described as scenario planning while authorities monitor the financial health of South-east Asia’s largest low-cost airline.
Discussions between the government and Malaysia Airlines and Batik Air have increased in recent weeks, the people said, amid growing concerns over financial pressures faced by Asean’s biggest budget carrier.
AirAsia reported a net loss of RM831 million for the second quarter ended June 30, hit by rising jet fuel costs and heavy foreign-exchange losses of RM331 million, Reuters reported.
The carrier has been restructuring aggressively, cutting underperforming routes, returning 25 older aircraft to lessors and renegotiating contracts with vendors to reduce costs.
Fernandes denied claims that his company is scrambling to secure US$3 billion (RM12.2 billion) to lift it out of the red, describing the reported sum as “something picked out of the air”.
Instead, he said AirAsia have been servicing its debt on time despite not getting any help from the government as it faced the Covid-19 crisis, which Fernandes described as the worst the carrier had ever faced.
On reports that it was unloading some of its newly acquired Airbus A321 Neo planes, Fernandes said the move was merely in response to the oil supply crisis and not a sign of financial strain.
