Lawmaker urges government to weigh AirAsia's economic role before deciding on aid

In the parliamentary discussion on the 2027 budget, Larry Sng emphasized AirAsia's role in linking communities, supporting tourism and offering low-cost flight options, urging the government to factor these contributions into any aid deliberations. He warned that shutting down the carrier would restrict air travel for many Malaysians. Previously, AirAsia co-founder Tony Fernandes held talks with officials from the Ministry of Finance and the Ministry of Transport, focusing on cost pressures such as airport fees and fuel, and he refuted claims that he had asked for government funding.

The airline disclosed a net loss of RM831 million for the second quarter ending 30 June, attributing the shortfall to increased jet fuel costs and adverse currency movements. Fernandes expressed confidence that AirAsia could navigate the challenging period without state support, while remaining open to assistance if offered.