No talks with govt on taking over AirAsia routes, says Malaysia Airlines
Malaysia Airlines CEO Nasaruddin A Bakar stated that there have been no official discussions regarding the airline taking over AirAsia's domestic routes. This follows reports that the government was exploring options to stabilize the aviation sector amid AirAsia's financial difficulties.
Why it matters
The potential collapse or restructuring of a major low-cost carrier has significant implications for national connectivity and the aviation economy.
The government reportedly asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic market share amid the low-cost carrier’s worsening financial difficulties.
KUALA LUMPUR: Malaysia Airlines has not held any official discussions with the government about absorbing AirAsia’s domestic market share or taking over its routes and aircraft, says its president and CEO, Nasaruddin A Bakar.
In mid-September, Reuters reported that the government had approached Malaysia Airlines and Batik Air to ask whether they could absorb AirAsia’s domestic market share amid the low-cost carrier’s worsening financial difficulties, which had been compounded by rising fuel costs linked to the Iran war.
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