AirAsia's Fernandes refutes financial concerns, cites growth plans

AirAsia is "sustainable" despite media reports to the contrary and is even planning for growth despite soaring fuel prices and geopolitical uncertainty, according to co-founder Tony Fernandes.

Reuters reported earlier this week, citing people with knowledge of the matter, that the Malaysian government had asked Malaysia Airlines and Batik Air whether they could take AirAsia's domestic market share as part of scenario planning while authorities monitored the carrier's financial health. Discussions had intensified in recent weeks as concerns mounted over AirAsia's finances, the report said.

"We're OK. We're sustainable," Fernandes said at a media briefing Friday, denying that the carrier needed a government rescue. "There is no chance of non-sustainability. Zero chance."