Report: Govt asks Malaysia Airlines, Batik Air if they can absorb AirAsia routes amid financial strain

The Malaysian government is evaluating the financial stability of AirAsia, the nation's largest low-cost airline, by consulting with Malaysia Airlines and Batik Air about potentially absorbing its domestic market share.

Concerns about AirAsia's financial health have intensified due to rising jet fuel costs linked to geopolitical tensions and substantial financial liabilities.

Discussions involve possible assistance for AirAsia, including government endorsements to facilitate capital raising efforts, alongside the airline's internal restructuring measures.

The government has engaged Alton Aviation Consultancy to assess AirAsia's funding requirements as part of strategic planning efforts.

KUALA LUMPUR, Sept 16 — Putrajaya has asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic market share as authorities monitor the financial health of the country’s biggest low-cost carrier, two people familiar with the matter told Reuters.

The discussions, which have increased in recent weeks, are part of scenario planning involving the Finance Ministry and state-linked airport operator Malaysia Airports Holdings Bhd (MAHB), as concerns grow over AirAsia’s financial pressures, the news agency reported.

According to the report Malaysia Airlines and Batik Air have told the government they would be willing to expand organically to take on AirAsia’s routes and passengers rather than acquire its entire business, one of the people said.

However, they would only consider taking over AirAsia’s operations on a large scale if they could also assume its aircraft leases, as absorbing its routes and passenger volumes without the aircraft would be considerably more difficult, the source said.

AirAsia has said it accounts for about 40 per cent of Malaysia’s overall aviation market and 60 per cent of domestic flying, making its financial position a significant concern for the government, according to the people Reuters spoke to.

AirAsia has been hit by soaring jet fuel costs stemming from the US-Israeli war on Iran, with costs rising 66 per cent in the second quarter from the previous quarter to an average of US$183 a barrel.

AirAsia reported a net loss of RM831 million for the quarter ended June 30, including RM331 million in foreign-exchange losses. Its current liabilities stood at RM18.4 billion as of June 30, according to Reuters.

The airline owes MAHB at least RM500 million for services including landing and parking fees, according to the people and two others familiar with the matter. MAHB has already granted AirAsia repayment extensions, two of the people said.

AirAsia said this month it was advancing discussions with financial institutions to raise up to US$1 billion from international debt markets and RM700 million in local credit facilities, primarily to restructure its debt.

Two people familiar with the matter estimated it needed at least US$3 billion in fresh capital.

AirAsia said its financing targets were sufficient to meet its requirements and that it had RM954 million in cash and bank balances as of June 30.

The airline also said it remained focused on business continuity and stable operations, with strong underlying demand across its network.

Other options discussed include the government providing some form of endorsement to support AirAsia’s efforts to raise fresh capital from external investors, although the exact nature of any potential support remains unclear, according to the report.

AirAsia has also been restructuring, cutting underperforming routes, returning 25 older aircraft to lessors and renegotiating vendor contracts to reduce costs.

Reuters reported earlier this month that the Finance Ministry had hired Alton Aviation Consultancy to assess the airline’s funding needs as the government considers whether to provide support.

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马来西亚政府正在评估该国最大的低成本航空公司亚洲航空的财务稳定性，并就可能吸收其国内市场份额的问题咨询马来西亚航空公司和巴迪克航空。

由于地缘政治紧张局势导致航空燃油成本上涨，以及巨额财务负债，人们对亚航财务状况的担忧加剧。

讨论内容包括向亚洲航空提供可能的援助，包括政府支持以促进其筹集资金，以及该航空公司内部的重组措施。

作为战略规划工作的一部分，政府已聘请奥尔顿航空咨询公司评估亚洲航空的资金需求。

吉隆坡，9 月 16 日——据两名知情人士向路透社透露，由于当局正在密切关注马来西亚最大的低成本航空公司——亚洲航空的财务状况，布城已询问马来西亚航空公司和巴迪克航空公司，它们是否能够吸收亚洲航空的国内市场份额。

据新闻机构报道，随着人们对亚航财务压力的担忧日益加剧，近几周来，相关讨论有所增加，这是财政部和国有机场运营商马来西亚机场控股有限公司（MAHB）参与的情景规划的一部分。

据报道，马来西亚航空公司和巴迪克航空已向政府表示，他们愿意通过自身发展来接管亚航的航线和乘客，而不是收购其整个业务，一位知情人士透露。

消息人士称，不过他们只有在能够同时承接亚航的飞机租赁业务的情况下，才会考虑大规模接管亚航的运营，因为如果没有飞机，吸收其航线和客运量将会困难得多。

据路透社采访的人士透露，亚航表示，该公司约占马来西亚整体航空市场的 40% 和国内航班市场的 60%，因此其财务状况令政府十分担忧。

受美国和以色列对伊朗战争的影响，航空燃油成本飙升，亚航因此受到冲击。第二季度燃油成本较上一季度上涨 66%，平均达到每桶 183 美元。

亚洲航空公布截至6月30日的季度净亏损为8.31亿令吉，其中包括3.31亿令吉的汇兑损失。据路透社报道，截至6月30日，其流动负债为184亿令吉。

据知情人士和另外两名知情者透露，亚航至少拖欠马来西亚机场控股公司（MAHB）5亿令吉的服务费，其中包括起降费和停机费。其中两名知情人士表示，MAHB已经批准了亚航的还款延期申请。

亚洲航空本月表示，正在推进与金融机构的磋商，计划从国际债务市场筹集高达 10 亿美元的资金，并从本地信贷机构筹集 7 亿令吉，主要用于重组债务。

两名知情人士估计，该公司至少需要30亿美元的新资金。

亚洲航空表示，其融资目标足以满足其需求，截至6月30日，其现金和银行存款余额为9.54亿令吉。

该航空公司还表示，公司将继续专注于业务连续性和稳定运营，其航线网络整体需求强劲。

报告称，讨论的其他方案包括政府以某种形式支持亚航从外部投资者那里筹集新资金，但任何潜在支持的具体性质仍不清楚。

亚洲航空也一直在进行重组，削减业绩不佳的航线，将 25 架老旧飞机归还给租赁公司，并重新谈判供应商合同以降低成本。

路透社本月早些时候报道称，财政部已聘请奥尔顿航空咨询公司评估该航空公司的资金需求，因为政府正在考虑是否提供支持。

在通胀担忧加剧的情况下，市场正等待美联储利率决议，亚洲股市表现疲软。

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