Bail out or downsize? Malaysia’s stark choice as AirAsia losses mount

Malaysia could struggle to preserve some domestic air links if low-cost carrier AirAsia is forced to scale back operations, analysts have warned, as rival airlines would have little commercial incentive to take over unprofitable routes. That reality could leave the government facing a stark choice: allow domestic flight services to shrink or step in with subsidies for essential routes, rather than assuming competitors will automatically fill any void left by the country’s largest budget...