Air Asia drops SYD-KUL

[Quickstatus]

The plot thickens
And will Air Asia take delivery of the A220?

 

[kpc]

The plot thickens
And will Air Asia take delivery of the A220?

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Looks like Air Asia could go into bankruptcy esp if the Iran war continues and jet fuel prices remain high. Probably not a great time to book any Air Asia flights more than a month or 2 ahead

A shame really as they do provide really affordable fares domestically and regionally which I have used a fair bit in the past!

 

[moa999]

Jet fuel has dropped somewhat from the March/ April highs, and as we are now 6 months in the hedges that Malaysian have are rolling off so both will be in a similar position. So if airfares hold (and thats a big if in a price sensitive/ elastic region) then the shirt term outlook is better, but still a lot of debt to roll.

Very similar to Air Baltic that also didn't hedge, and has just gone into US bankruptcy protection (Latvian airline with 50 A220-300s).

https://www.reuters.com/world/airbaltic-files-chapter-11-bankruptcy-new-york-2026-09-14/

But neither MH or Batik Malaysia are I suspect in any position to scale up operations quickly.
MH made US$34m profit last year.
Batik is private but also doesn't hedge, so I suspect is in the red, and the 51% Malaysian owners mostly consist of the current CEO.

 

[Quickstatus]

But neither MH or Batik Malaysia are I suspect in any position to scale up operations quickly.

To scale up, they need airframes.

 

[elanshin]

To scale up, they need airframes.

He means if they absorb Air Asia which the other post is hinting that they're exploring.

 

[Quickstatus]

He means if they absorb Air Asia which the other post is hinting that they're exploring.

Exactly, they would need airframes. Perhaps the airframe lease would carry over.
But the cost problem remains regardless of who takes it over. If AirAsia cant pay its bills, Im not sure who can.....

Perhaps it will downsize and stay alive.

 

[JustSlash]

It would be sad to see AA go bust, and I genuinely hope that doesn’t happen.

That said, the last few times I’ve compared AA with MH and other full-service airlines, the price difference has been surprisingly small and sometimes to the point where you’d rather just pay a little extra and go with the full-service option.

I think that says quite a lot, because back in the day AA was so much cheaper that you were happy to sacrifice a bit of comfort and luxury for the savings. Nowadays, when the difference is only minor, you start thinking… might as well get the luggage, food and a bit more comfort for the journey!