It was reported today by a number of news portals, quoting Nikkei Asia, the loan would be disbursed to the airline next month, with 80% guaranteed by the ministry.

A ministry spokesman denied the reports in a statement today, saying: “The finance ministry would like to clarify that it has not approved any government financing or guarantee to any airline.”

FMT reached out to AirAsia for comment and was told “there is nothing to announce at this time”.

“Any announcement will be made in due course.”

AirAsia, along with other players in the airline industry, has been hit badly by the Covid-19 pandemic as closed international borders and domestic travel restrictions take their toll on the company.

Just over a week ago, the group confirmed that 10% of the 24,000 strong workforce had been retrenched.