Malaysia considers AirAsia support under public-fund safeguards

Malaysia’s finance ministry is examining possible financial assistance for AirAsia, but the government would not provide money without a formal framework, former transport minister Anthony Loke told Reuters on Nov 11.

Citing cabinet discussions, Loke said officials were seeking to protect public money while preserving air connectivity as the private carrier contends with expensive jet fuel and exchange-rate fluctuations. He did not disclose the proposals being assessed. Any conditions would be determined by Prime Minister Anwar Ibrahim, who also serves as finance minister.

AirAsia holds roughly 60 per cent of Malaysia’s domestic aviation market. Its current liabilities stood at RM18.4 billion on Jun 30. Neither the airline nor the finance ministry responded to requests for comment.

The carrier has outlined plans to borrow up to US$1 billion internationally and obtain RM700 million through domestic credit facilities. Co-founder Tony Fernandes told Reuters in October that he anticipated completing the US$1 billion fundraising between December 2026 and February 2027.

Fernandes said then that he had not requested government aid, although AirAsia would accept assistance. The finance ministry said in October that it had not agreed or committed to support through guarantees, lending or injections of public money.

Separately, Anwar’s senior political adviser Tengku Zafrul Aziz said interventions involving private companies should protect operations and employees rather than shareholders. Zafrul, chairman of the Malaysian Investment Development Authority, said he was expressing a personal view about government intervention generally.

Loke also cited existing airline relief: the Civil Aviation Authority of Malaysia increased the payment period for aviation fees and charges to 60 days from 30 days, effective May 1.