AirAsia Group Bhd co-founder Tony Fernandes rejected reports that Malaysia was preparing contingency plans or a bailout for the carrier’s domestic operations, saying the airline is pursuing commercial refinancing and has more than RM1 billion in liquidity. AirAsia shares fell 21.09% on Thursday to 50.5 sen, a four-year low, extending their decline to more than 70% this year and about 75% since the Middle East conflict began. The selloff followed a Reuters report that Malaysia had asked Malaysia Airlines Bhd and Batik Air whether they could absorb AirAsia’s domestic routes or capacity in a contingency scenario. AirAsia controls roughly 60% of Malaysia’s domestic market. The group reported a second-quarter net loss of RM830.5 million, including RM331 million in foreign-exchange losses, as average jet-fuel prices rose 66% from the previous quarter to $183 a barrel. Although cash and bank balances stood at RM954 million at June 30, Fernandes said liquidity had since exceeded RM1 billion. AirAsia is seeking about US$1 billion in international debt financing and RM700 million from local institutions to reduce funding costs, while demand remains strong and 25 of roughly 60 cut routes have been restored.