AirAsia plummets to six-month low as CEO under probe for alleged graft

AirAsia Group Bhd shares fell to their lowest level in six months after India said it’s investigating Chief Executive Officer Tony Fernandes and other officials for allegedly paying bribes to influence local policy. The Central Bureau of Investigation (CBI) said on Tuesday the budget airline’s executives bribed Indian officials through middlemen to sway government decisions on aviation, including obtaining a flying permit for the local unit and approvals to operate internationally. 

AirAsia’s stock fell 7 per cent to 3.08 ringgit on Wednesday, the lowest closing price since November 28. It slid as much as 11 per cent earlier in the day in Kuala Lumpur. The probe poses uncertainties to AirAsia’s expansion plans. Fernandes has identified India as one of the main pillars of his pan-Asian dream as he seeks to capture a share of a market dominated by Gulf-based carriers and Air India. With the India unit, he’s planning more domestic flights, while international operations are on the cards early next year.