AirAsia To Emerge Stronger From Pandemic: Fernandes

Kuala Lumpur, July 9 (UrduPoint / Pakistan Point News - 9th Jul, 2020 ) :AirAsia boss Tony Fernandes insisted Thursday the top budget carrier would emerge "stronger" from the coronavirus pandemic despite a warning about its future, and said the airline was hopeful of raising a sizeable cash injection.

In an interview with AFP, the chief executive said he never imagined the industry could face such a crisis, which has triggered massive layoffs worldwide and led to some carriers collapsing.

"I never believed the aviation industry could be hit this hard. But... we are still flying," he said from his office in downtown Kuala Lumpur.

"This will not go on forever. We will come out stronger." AirAsia pioneered low-cost travel across Asia in the early 2000s, feeding insatiable demand for cheap flights from a rapidly-emerging middle class, and became one of the region's top budget carriers.

But the Malaysian carrier reported dismal first-quarter results this week after grounding almost its entire fleet due to the virus, prompting auditor Ernst & Young to warn of "significant doubts" about its future.

It also noted the airline's liabilities currently exceeded its assets by 1.84 billion Ringgit ($430 million).

Fernandes said the airline could not "run away" from the assessment but added: "We had four months of no revenue, that does not mean liabilities will exceed assets for the rest of our lives."AirAsia was taking steps to minimise costs, including cutting about 7.5 percent of 23,000staff across its businesses, he said, but added he hoped there would not be any further job losses.