KUALA LUMPUR (Sept 18): It is unfeasible for rivals to absorb AirAsia Group Bhd's (KL:AAGB) domestic market share even as a contingency plan, the airline’s adviser Tan Sri Tony Fernandes said.
Any attempt to take over AirAsia’s domestic routes plied by some 100 planes would need to match the discount carrier’s cost structure, brand, market, and interlining, he told a press conference on Friday.
“I mean, it’s the most ludicrous statement I have seen in 25 years,” he said.
Fernandes was responding to a Reuters report that authorities had approached Malaysia Airlines and Batik Air to gauge their capacity to take over AirAsia’s domestic routes. The report comes at a time of mounting concerns over AirAsia’s finances amid soaring jet fuel prices.
Net loss widened to RM527.16 million in the three months ended June 30, 2026, prompting the airline to cut seat capacity by 20% to 25% year-on-year in the subsequent quarter. AirAsia has also suspended underperforming long-haul routes and delayed the launch of its proposed hub in Bahrain.
Still, “you cannot just replace an airline”, Fernandes said, adding that the market fails to appreciate the operational scale and cost advantages that AirAsia commands in the Asean low-cost aviation sector.