The Malaysian government has reportedly asked Malaysia Airlines and Batik Air Malaysia whether they could absorb the domestic market share of AirAsia (AK, Kuala Lumpur International) as part of contingency planning amid concerns over the low-cost carrier's finances. However, the two carriers reportedly said they would only take over AirAsia's operations on a large scale if they could also assume its aircraft leases, while preferring organic expansion to absorb its routes and passengers.

AirAsia reportedly owes state-linked airport operator Malaysia Airports at least MYR500 million ringgit (USD123.5 million) for services including landing and parking fees. The LCC has previously said it was seeking up to USD1 billion in international debt financing and MYR700 million ringgit (USD172.5 million) in local credit facilities.

ch-aviation has contacted the parties for comment.