KUALA LUMPUR (Nov 13): Malaysia Airlines has held no discussions with the government about absorbing AirAsia Group Bhd’s (KL:AAGB) domestic market share or taking over its aircraft, amid reports of efforts to the budget carrier's financial pressures.
“We got no official request (from the government) and no official discussion. There’s also no discussion to take its aircraft.
“But as a national carrier, we have to ensure there is connectivity within the country and outside the country. So that's one of our jobs, to ensure connectivity,” said Malaysia Airlines president and group chief executive officer Captain Nasaruddin A Bakar, who also heads its parent Malaysia Aviation Group.
He was speaking to reporters on the sidelines of the Association of Asia Pacific Airlines (AAPA) event on Friday.
Reuters reported in mid-September that the government had approached Malaysia Airlines and Batik Air to assess whether they could absorb AirAsia’s domestic market share amid mounting financial pressures on the budget carrier, which has been hit by soaring jet fuel costs due to the Iran war.
Citing sources, Reuters said both airlines had indicated their willingness to expand organically by taking over AirAsia’s routes and passengers, rather than acquiring its entire business.
Meanwhile, AirAsia Group adviser Tan Sri Tony Fernandes has dismissed concerns over the airline’s financial position, saying its operations remain sustainable, with more than RM1 billion in cash, and that it had not sought a government bailout.
AirAsia Group’s net loss widened to RM527.16 million in the second quarter ended June 30, 2026, prompting the airline to cut seat capacity by 20% to 25% year-on-year in the subsequent quarter.