Is AirAsia too big to fail? It should be

Like most other airlines around the world, AirAsia has run into financial headwinds.  What happens in the next few weeks will determine its future shape; this will almost certainly be different from its present form, but for the sake of aviation and tourism in Asia, it is highly important that it survives.

On 8-Jul-2020 EY served notice of “significant uncertainties with respect to the Company’s ability to continue as a going concern”.

AirAsia is now seeking investors, including a possible raising of some nature from its existing shareholders.

Losing the region's leading LCC would at one stroke threaten a large part of the region's tourism industry – in 2019 AirAsia carried more than 35 million passengers.  

Summary:

• Accountants have raised concerns about AirAsia's financial position as a going concern.  
• "Post-hibernation" sales are hoping to stimulate demand again.
• Various sources are being explored to provide funding to carry the LCC through the immediate downturn.
• ASEAN and national governments should focus attention on creating the correct post-COVID economic environment.

View more here: https://centreforaviation.com/analysis/reports/is-airasia-too-big-to-fail-it-should-be-530828