AirAsia to emerge stronger from COVID-19 pandemic: Tony Fernandes

AirAsia boss Tony Fernandes said Thursday that the 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. The CE 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. "This will not go on forever. We will come out stronger." 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. 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% of 23,000 staff across its businesses, he said, but added he hoped there would not be any further job losses. Fernandes said the airline was in talks with international and local lenders to raise funds to weather the crisis, adding he was hoping to raise "more than RM1b" (US$230m) - and possibly up to double that within six months.<br/>