Govt approves RM1 bil loan for AirAsia, says report

 

AirAsia will use the funds to repay short-term loans and as working capital.

PETALING JAYA: Putrajaya has reportedly approved a RM1 billion loan for AirAsia Group Bhd to help the budget airline through the tough times brought about by the Covid-19 pandemic.

Nikkei Asia reported that the loan is expected to be disbursed next month by a group of local banks under a government scheme, with 80% of the loan guaranteed by the finance ministry.

“The RM1 billion is deemed very crucial for AirAsia, to be utilised for repayment of short-term loans and fund working capital,” a source within the ministry told Nikkei Asia.

Other sources had said Putrajaya initially offered a RM500 million loan, although it later conceded to the request for RM1 billion.

Meanwhile, another source in AirAsia told the financial news site the budget airline company is set to retrench more staff next month.

The source said the next round of job cuts could affect more than 400 employees, not limited to just cabin crew and pilots. - FMT