AirAsia Group have asserted that their future is secure amid media reports of financial instability.
The Malaysian carrier released a press release saying their approach is ‘focused and prudent’, and that they remain committed to long-term growth.
According to Reuters, the Malaysian government had suggested Malaysia Airlines and Batik Air take over AirAsia’s domestic operations. The low-cost carrier (LCC) has been struggling amid high fuel prices and geopolitical turbulence, reporting losses of US$200 million in Q2 this year.
AirAsia Group said they had cut capacity by 20-25% in Q3, including postponing the opening of a new Bahrain hub. But as they approach Q4 and enter Asia’s busiest travel season, the airline remains confident about their long-term prospects.
Bo Lingam, Group CEO of AirAsia Group, said:
Given the current environment, we are taking a disciplined approach to managing the business — adjusting capacity, controlling costs, having active discussions with key stakeholders and strengthening our resilience. While there has been much speculation in the media, much of it inaccurate, there is no question about our commitment to business continuity and continuing to serve our guests.
Earlier this month, AirAsia announced they planned to fundraise up to US$1 billion, primarily for debt restructuring and consolidating its balance sheet. At a media briefing on Friday 18th September, the airline’s co-founder Tony Fernandes dismissed the suggestions that AirAsia’s domestic network could be taken over by rivals. He insisted:
We’re sustainable. There is no chance of non-sustainability. Zero chance.
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