Capital A CEO and AirAsia co-founder Tan Sri Tony Fernandes refuted an earlier media report that said AirAsia 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 airlines’ financial situation, the Malay Mail reported on Friday.
“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 was quoted as saying.
The media briefing came two days after Reuters reported, quoting sources, that 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 AirAsia.
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 Southeast Asia’s largest budget carrier, the report added.
Fernandes also denied claims that his company is scrambling to secure $3 billion to lift it out of the red.
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, the Malay Mail reported.
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.
AirAsia’s current liabilities stood at MYR18.4 billion ringgit ($4.52 billion) as of June 30, against cash and bank balances of MYR954 million, Reuters reported.
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