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Malaysia asked airlines if they can absorb AirAsia’s domestic routes: Report
September 17th 2026
Malaysia’s government is talking with AirAsia’s rivals to see whether they can absorb the LCC’s domestic routes, Reuters reported exclusively. Read More » The government asked Malaysia Airlines (MAS) and Batik Air as part of what they described as scenario planning while authorities monitor the financial health of LCC. The talks, which involve the finance ministry and state-linked airport operator Malaysia Airports Holdings Berhad (MAHB), are part of broader scenario planning around AirAsia’s financial strains, two people familiar with the matter told Reuters. MAS and Batik Air told the government they would only take over AirAsia’s operations on a large scale if they could also assume its aircraft leases, one of the people said, as absorbing its routes and passenger volumes without the aircraft would be far more difficult. Both airlines told the government they were willing to expand organically to absorb AirAsia’s routes and passengers rather than acquire its entire business. AirAsia said it has a 40% share of Malaysia’s overall aviation market and 60% of the domestic market.
