By: AirTravellerPH Staff
AirAsia Group long-haul subsidiary AirAsia X's plan to expand their services to the United States west coast will have to wait as the U.S. Federal Aviation Administration (FAA) has downgraded Malaysia's safety rating to category 2. This means that Malaysia-based airlines are prohibited from operating new services to the United States and will impose additonal inspections on Malaysian carriers in U.S. airports.
Kazanah Nasional is reportedly pushing for the merging of Malaysian Airlines and AirAsia X, based on a report by Ch-Aviation. The Malaysian sovereign fund looks to turn the two loss-making airlines into a profitable single entity. Malaysia Airlines is wholly-owned by Kazanah Nasional while AirAsia X is owned by the AirAsia Group. Several shareholders opposes the merger which is seen as a bailout for Malaysian Airlines.