AirAsia co-founder Fernandes plans to start new airline, Bloomberg News reports

AirAsia co-founder Tony Fernandes is preparing to launch a new airline, betting on high oil price volatility, Bloomberg News reported on Thursday (May 7).

The new airline could be announced within the next couple of months, the report said, adding that the carrier group is moving some planes for the venture.

AirAsia did not immediately respond to Reuters requests for comment. Fernandes did not respond to a message on LinkedIn.

Malaysian budget carrier AirAsia is preparing to sell as much as US$600 million (S$760 million) in bonds and is in talks with Malaysian banks for a refinancing loan that would bring down interest costs, Fernandes told Bloomberg in a video interview from Montreal late Wednesday.

This comes after the Malaysian carrier announced on Wednesday a firm order of 150 Airbus A220 jets manufactured in Canada, with 150 options to purchase a larger version of the jet if Airbus makes it.

AirAsia recently cut the number of flights due to the spike in fuel prices since the US-Israeli war on Iran disrupted global oil markets.

However, Fernandes said last month demand for flights remained high and he was optimistic the airline would return stronger after the crisis ends.

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