A defiant AirAsia Group Bhd. co-founder Tan Sri Tony Fernandes said reports Malaysia’s government has asked rivals for help were false, saying the low-cost airline will emerge from its current crisis stronger than before.
The airline’s woes have mounted this year following the outbreak of war in the Middle East, which sent oil and jet fuel prices surging. Its stock has plunged around 75% - since the conflict started amid concern the carrier is under growing financial strain. The carrier has taken the unusual step of offloading six newly-delivered planes, including two in July, Bloomberg News reported earlier.
"We’ve been through many many crises, but we’ve always come out stronger,” Fernandes said at a briefing Friday in Bangkok. "Covid was far, far worse than what we are dealing with now.”
The hastily arranged briefing came after AirAsia’s stock slumped 21% to a four-year low on Thursday after reports Malaysia’s government had asked other local airlines to potentially absorb the cash-strapped carrier’s domestic market share.
"I can say confidently the government said we never said anything like that,” Fernandes said. "You cannot just say, "Oh, this airline is going to take AirAsia’s capacity.” I mean, it’s the most ludicrous statement I have seen in 25 years.”
AirAsia had RM954mil in cash and equivalents as of the end of June, one of the lowest balances among airlines tracked by Bloomberg globally.
"I have better things to do right now than have this press conference” because of an inaccurate article, he said. "We are good at managing cash and we are strong in liquidity,” he added.
"Things get blown out of proportion when it’s AirAsia,” Fernandes said. "I sneeze, it’s a big story.” - Bloomberg
