AirAsia wins Malaysia state backing for $242m COVID lifeline

KUALA LUMPUR -- Malaysia's government is backing a 1 billion ringgit ($242 million) loan as a lifeline to budget carrier AirAsia Group as it struggles to contain the fallout from the coronavirus pandemic, Nikkei Asia has learned.

The loan will be made by a group of local banks under a government scheme to help companies deal with the pandemic. It will be 80% guaranteed by Malaysia's finance ministry, according to sources at the ministry and the airline who are aware of the plan.