AirAsia Group has gained approval for a government backed loan of up to RM500 million (US$120 million). The loan is 80% guaranteed by the government, and will be used for working capital, staff costs and other operating expenses as it aims to ramp up operations and get more planes flying again.
The loan facility was approved by AirAsia Group’s lenders under a club deal term financing, with the guarantee provided by Danajamin via an entity owned by the Finance Ministry. Domestic interstate travel will be able to restart soon as the country’s adult vaccination rates gradually inches toward 90%.
