AirAsia climbs after M'sia said to study airline's Kota Kinabalu airport proposal

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KUALA LUMPUR (July 26): AirAsia Group Bhd shares climbed as much as 15 sen or 4% to RM3.55 after the Malaysian government said it will study the technical aspect of the budget airline's proposal to return to Kota Kinabalu International Airport's Terminal 2.

At Bursa Malaysia, AirAsia shares pared gains to trade at RM3.51 at 3:57pm. The counter saw about 20 million shares traded.

Earlier today, Transport Minister Anthony Loke Siew Fook said in Parliament the ministry's decision will take into consideration the Sabah state government's views.

Loke said: "Pakatan Harapan's objective is to support the tourism industry in Sabah. However, with such specific proposal from AirAsia to return its operations to Terminal 2, we need to study the technical aspect (of the proposal), as it cannot be based on sentimental reason only."