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Minister: Malaysia Airlines-AirAsia merger still an option
A merger between cash-strapped Malaysia Airlines and AirAsia could still be happen, according to a senior government official.
Minister of international trade and industry, Mohamed Azmin Ali said a merger between the two carriers is still an option among various measures being looked at to help the aviation industry.
It is not a new idea; a merger proposal was tabled several years ago but got nowhere after a public outcry over a lack of market competition.
With Malaysia Airlines continuing to struggle financially even before the Covid-19 pandemic, all options are on the table, including a merger with the low cost carrier.
Talks on a possible merger took place again last year.
"A discussion took place last year, even before this pandemic came but we need to continue the discussion," Azmin told Reuters.
"We need to see how best we can save these airlines, and it’s not going to be a very simple answer. Things are very bad, the aircraft are not flying. We need to sit down and discuss how to address these issues."
A bid was recently tabled for Malaysia Airlines by local firm Golden Skies Ventures for $2.5 billion which is still being considered.
"We were also looking at some of the proposals coming from international players," Azmin said, but added the pandemic makes a bid from a foreign airline less likely in the current economic climate.
According to industry sources one interested party was Japan Airlines.
AirAsia itself is in need of a cash infusion to stay afloat.
According to industry analysts it has cash reserves to keep the business ticking over for about five or six months.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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