KUALA LUMPUR: Malaysia Airlines Bhd has called for any financial assistance extended to struggling airlines, including AAGB, to be made available on equal terms to other carriers to ensure fair competition in the aviation industry.
Group chief executive Captain Nasaruddin A. Bakar said government support should not give any particular airline an unfair advantage over its competitors, according to a report by Bloomberg.
"It has to be a fair playing field. If it's given to one airline, it should be given to all other airlines as well,” he said in an interview on the sidelines of the Association of Asia-Pacific Airlines' annual meeting in Kuala Lumpur.
Nasaruddin also said Malaysia Airlines was prepared to expand its operations if AirAsia encountered more serious operational difficulties, given its responsibility as the national carrier to maintain air connectivity across the country.
He said the airline would need to ensure it had sufficient aircraft and crew to accommodate any additional capacity requirements.
However, any expansion would depend on whether it could be carried out safely and on a financially sustainable basis.
Malaysia's aviation sector is facing mounting pressure from higher jet fuel costs, with the US-Iran war disrupting the global aviation industry and placing additional strain on airlines, particularly low-cost carriers.
AirAsia has been facing increasing financial challenges amid the higher operating costs.
Its shares fell sharply in September following a report that the government had approached several local airlines, including Malaysia Airlines, to assess their readiness to take over routes should AirAsia be forced to suspend some services due to worsening financial difficulties.
The government has since said it has not made any commitment to provide financial assistance to the budget carrier.
Nasaruddin said Malaysia Airlines recognised its responsibility to ensure domestic connectivity remained intact, particularly if another carrier was unable to maintain its existing services.
Nevertheless, he stressed that any move to increase capacity would have to take into account the availability of resources and the airline's operational and financial capabilities.