Nikkei Asia is reporting today (13 October) that the government of Malaysia has approved a 1 billion ringgit (US$242 million) loan low-cost carrier AirAsia Group as it struggles to contain the fallout from the COVID-19 pandemic. The loan will be made by a group of Malaysian banks under a government scheme to help companies deal with the pandemic. It will be 80 percent guaranteed by Malaysia’s finance ministry, according to sources at the ministry and the airline who are aware of the plan, Nikkei Asia reported. AirAsia is also to embark on another round of job cuts next month, a source within the carrier told Nikkei Asia.
Like airlines across the world, AirAsia has been dealt a huge blow by the coronavirus pandemic, which has severely curtailed demand for travel. The group, controlled by CEO Tony Fernandes, has already cut more than 10 percent of its workforce and plans to downsize its fleet of aircraft to try to contain costs.
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