KUALA LUMPUR: The government is studying ways to shore up the country's major airlines to avoid disruptions to connectivity and potential economic fallout, says Transport Minister Anthony Loke.
This follows reports of possible government assistance for low-cost carrier AirAsia amid concerns over its financial health following a spike in jet fuel prices.
"This is indeed something we are discussing at the government level. We are looking at how to ensure the aviation industry remains sustainable.
"Our priority is to ensure that our national airlines continue operating and that connectivity is maintained, because if any major airline goes bankrupt, it could disrupt our connectivity.
"However, how to assist foreign airlines, private airlines and others is something that needs to be examined and studied.
"This is being looked into by the Finance Ministry and no decision has been made so far," he said during the ministry's winding-up session for Budget 2027 in the Dewan Rakyat on Tuesday (Oct 27).
Loke said an airline's collapse would not only cost its crew their jobs but also disrupt connectivity, with adverse consequences for the national economy.
"This matter is very much on the government's radar, and we are doing our utmost to ensure it does not happen," he said.
