Malaysia’s government has asked Malaysia Airlines and Batik Air whether they could absorb AirAsia’s domestic market share as part of scenario planning around the low-cost carrier’s financial pressures. The discussions have intensified in recent weeks and involve the finance ministry and Malaysia Airports Holdings Berhad (MAHB), the state-linked airport operator. AirAsia has said it holds about 60% of Malaysia’s domestic aviation market and 40% overall. The carrier had 18.4 billion ringgit ($4.51 billion) in current liabilities as of June 30, including at least 500 million ringgit owed to MAHB, according to people familiar with the matter. AirAsia is seeking up to $1 billion from international debt markets and 700 million ringgit in local credit facilities, while two people estimated it needs at least $3 billion in fresh capital. The airline reported an 831 million ringgit second-quarter net loss and is cutting routes, returning aircraft and renegotiating vendor contracts.