Malaysia's finance ministry hires adviser to assess AirAsia's funding needs, sources say
The Malaysian government has hired Alton Aviation Consultancy to evaluate the financial health and funding requirements of AirAsia. The airline is currently facing significant financial pressure due to rising fuel costs and currency losses.
Why it matters
As a major regional employer, AirAsia's financial stability is a matter of public interest, prompting government scrutiny regarding potential support or restructuring.
HONG KONG/KUALA LUMPUR: Malaysia's finance ministry has hired Alton Aviation Consultancy to assess AirAsia's funding needs, said three sources familiar with the matter, as Southeast Asia's largest budget carrier seeks fresh capital amid mounting financial pressure.
The appointment signals the Malaysian government is weighing what support, if any, it can extend to AirAsia, with the public interest and economic impact central to its deliberations, the sources said.
The government's involvement is driven partly by AirAsia's role as a major employer and provider of affordable air connectivity across the region, one of them said, adding that the ministry has monitored the situation for several weeks.
AirAsia may require some form of government endorsement to raise fresh capital from external investors, but the exact nature of any support was unclear, the source added.
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