AirAsia may last less than five months on current conditions, may raise RM1bil debt

This is due to the owing to fixed cash operating costs of RM192 million , cash costs for operating lease instalments and financing expenses of RM258 million, and fuel hedging losses of RM77 million by using US$35 as the average Brent spot price for rest of the year.

“Assuming 20 per cent of the sales in advance of carriage is refunded, due to AirAsia’s many flight cancellations, the remaining cash balance of RM2.4 billion can pay for AirAsia’s fixed costs for less than five months under the current conditions,” he added.AirAsia, he said, was on the lookout for short-term working capital facilities from the government to give a guarantee for a loan that the airline hoped to take from local commercial banks at low interest rates.

Yap expects AirAsia to raise an additional RM1 billion in debt funding this year, followed by RM600 million in the next two years to tide through bruising losses and cash burn arising from the Covid-19 pandemic. Aviation market has been waiting for the government’s concrete action to help the industry. But up to this point, Yap said CGS-CIMB had not seen any substantial measures.

Let it go under or get loans from banks - no government funding or bailout using Rakyat's money. We can't afford to prop it up because it will take years for the sector to recover.

During BN air asia quite rebellious.....now they want sympathy from pn muafakat national.....

I thought the Credits I received in my Credit Account is Available For Use for Twelve months?

AirAsia ask Tony bloody Fernandes to use his OWN billions. Disgusting leech. Keep their own wealth and leech off the public to keep their money machine afloat.

If airasia decide to perform a zoo negara and allow you to adopt a plane, i would definitely buy it Imagine a personal plane

An airline who charge RM10 service fee for every ticket if you pay through debit or credit card!

so? it's private entity. unless Airasia want to be nationalized

Cut off luxury life Sell all except 1 luxury cars ,Cut 65% of directors and all upper mgmt salary,revert to normal salary. Result? +6 month survival time

Buy back from Tony for RM 1?

weren't they the ones offers cheap flight tickets during the earlier outbreaks and resulted in many Malaysian to travel overseas, and further worsen the virus control in our country?

Why should Gov pump in money this Airlines belong to a Billionaire why not pump in their billions

CeO already made it clear, he is seeking borrowing help. So lets keep it as a loan. And not turn it to a bail out. They paid RM1.14 Billion in 2019 despite earnings drop

So what.

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