No Decision Yet On Financial Assistance For AirAsia - Loke

KUALA LUMPUR, Oct 27 (Bernama) -- The government has yet to decide whether to provide financial support to financially distressed AirAsia Group Bhd, said Transport Minister Anthony Loke Siew Fook.

He said both the Ministry of Transport and the Ministry of Finance are reviewing proposals to assist the airline.

“The government’s priority is to ensure ongoing airline operations and maintain connectivity, as the bankruptcy of a major airline would disrupt this connectivity. If an airline shuts down, it would not only result in job losses, but also affect connectivity, with adverse consequences for the country. 

“This is a matter of concern to the government, and we are doing our utmost to prevent such a situation,” he told the Dewan Rakyat while winding up the debate on the Transport Ministry’s 2027 Budget today.

Loke was responding to Khairil Nizam Khirudin (PN-Jerantut), who raised concerns over the low-cost carrier’s high debt and asked whether the Transport Ministry was considering assistance, citing its 26,000 employees and the potential impact on jobs.

-- BERNAMA