Fernandes says met Finance, Transport Ministries, but insists AirAsia doesn't need govt rescue

AirAsia co-founder and adviser Tony Fernandes insists that the troubled airline can navigate its financial turbulence without government assistance.

This comes after he reportedly had a recent meeting with officials from both the Finance Ministry and the Transport Ministry to discuss potential support from Putrajaya.

The low-cost airline is...

AirAsia co-founder and adviser Tony Fernandes insists that the troubled airline can navigate its financial turbulence without government assistance.

This comes after he reportedly had a recent meeting with officials from both the Finance Ministry and the Transport Ministry to discuss potential support from Putrajaya.

The low-cost airline is in financial trouble amid skyrocketing jet fuel costs, and is seeking RM1 billion from international debt markets and RM700 million in local credit facilities.

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

In a Reuters report published today, Fernandes confirmed that he had met the two ministries two weeks ago at his request, but only discussed aviation-related costs such as airport charges and fuel.

“Obviously, like every airline in the world, we are telling the government that this is a tough period. There have been no discussions on financial assistance with the government.

“I meet ⁠with government officials all the time… just because I meet them doesn’t mean we’re talking about financial assistance,” he was quoted as saying.

He denied seeking financial assistance or that Putrajaya offered to help. However, he also said it would be “foolish” to reject assistance if it was offered.

Meanwhile, the same Reuters report cited sources as saying that during Fernandes' meeting with the Finance Ministry, there were talks about the government possibly backing AirAsia’s fundraising efforts provided the airline agreed to unspecified conditions.