The scheme is part of Malaysia’s economic stimulus package following the unprecedented outbreak of Covid-19.

AirAsia Group executive chairman Kamarudin Meranun said the approval from the government was a strong endorsement of AirAsia Group’s ability to recover fast and provided a welcome boost to its overall fundraising strategy as it prepares to return to the skies in all key markets.

“Countries around the world, including those in the region, have begun to reopen international borders amid promising progress in vaccination rates,” he said in a statement today.

Malaysia’s adult vaccination rate is close to 90%, and domestic interstate movements will be allowed once the country reaches that milestone.

“The Langkawi travel bubble has been a huge success with overwhelming demand since we scheduled up to 90 flights per week since Sept 16.

“In Thailand, Indonesia, and the Philippines, we are seeing pleasing progress as flights have gradually started to resume,” Kamarudin said.

He said countries in the region continued to discuss and implement travel bubbles and to gradually reopen international borders and hence, AirAsia Group is confident it will be able to recover and rebound strongly in the near future.

The loan has been approved by AirAsia Group’s lenders under a club deal term financing, with the aforementioned guarantee to be provided by Danajamin via Syarikat Jaminan Pembiayaan Perniagaan (SJPP), a wholly-owned entity of the finance ministry.

The financing is earmarked for working capital purposes, which will be utilised to support staff costs and aircraft maintenance as it prepares to ramp up operations leading up to the reopening of interstate and international borders in the near future, he noted.