Malaysia is reportedly preparing contingency plans as concerns grow over AirAsia’s financial health.
According to an exclusive Reuters report, the government has asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic routes and passengers if necessary.
The discussions reportedly involve the Ministry of Finance and Malaysia Airports Holdings Berhad.
The financial figures cited are substantial:
AirAsia recorded RM18.4 billion in current liabilities as of 30 June 2026.
It reported RM954 million in cash and bank balances.
Its second-quarter net loss reached RM831 million, including RM331 million in foreign-exchange losses.
Sources told Reuters that AirAsia allegedly owed Malaysia Airports at least RM500 million for services such as landing and parking.
Two sources estimated that the airline may require at least US$3 billion in fresh capital.
AirAsia, meanwhile, said it is pursuing up to US$1 billion from international debt markets and RM700 million in local credit facilities, mainly to restructure debt.
The airline has also been cutting underperforming routes, returning 25 older aircraft and renegotiating contracts to lower costs.
This issue has national implications. AirAsia says it controls around 40% of Malaysia’s overall aviation market and approximately 60% of domestic air travel.
Any serious disruption could affect ticket prices, connectivity, employment and tourism.
AirAsia maintains that operations remain stable, passenger demand remains strong and management is working with stakeholders to meet its financial and operational needs.
Important disclaimer: All claims concerning government discussions, alleged debts and estimated funding requirements are attributed to unnamed sources cited by Reuters. Reuters stated that it could not independently establish the full details of AirAsia’s financial position. No takeover or government assistance has been officially announced.