Tony Fernandes: AirAsia Can Weather Crisis Without Government Aid

AirAsia co-founder and adviser Tony Fernandes has insisted the struggling airline can weather its current financial crunch without government help. His remarks come amid reports that he recently met officials from the Finance and Transport ministries to discuss possible support from Putrajaya.

Fernandes Admits Meeting Two Ministries, but Says Only Flight Costs Were Discussed

The low-cost carrier is under pressure from a sharp spike in jet fuel costs. It is now seeking RM1 billion from the international debt market and RM700 million through a local credit facility. 

Putrajaya has also reportedly held talks with Malaysia Airlines and Batik Air about possibly taking over AirAsia’s domestic market share.

In a Reuters report, Fernandes confirmed he met both ministries two weeks ago at his own request, but said discussions covered only aviation-related costs such as airport charges and fuel. 

He said there was no discussion of financial aid, and that meeting government officials does not mean a bailout was on the table.

He denied applying for assistance or being offered any, though he called it “stupid” to turn help down if it were offered.

Meanwhile, the same Reuters report cited sources saying that in the Finance Ministry meeting, there was talk of the government possibly backing AirAsia’s fundraising, on the condition that the airline agrees to certain terms.