AirAsia Group Bhd is reviewing options for its long-term subsidiary AirAsia X Bhd including finding investors to help finance the company.

The low-cost company is also looking at other alternatives including getting support from Khazanah Nasional Bhd (Khazanah) or incorporating AirAsia X into the group.

Sources, who declined to be identified because the talks were confidential, said the closure of AirAsia X's operations was also among the group's options.

AirAsia founder Tan Sri Tony Fernandes has also spoken with investment bankers about strategic options for its long-haul flight unit, which recorded a loss of RM490 million last year.

According to sources, the discussion began before the outbreak of COVID-19 affecting the world of aviation.

Sources said the issue of bonds to finance the unit was also considered.

Discussions are still in the early stages and the company has yet to finalize the final decision, sources said.

AirAsia and Treasury representatives declined to comment on the matter.

The AirAsia group's long-haul carrier was affected in November after the US Federal Aviation Administration (FAA) suspended Malaysian airlines adding new routes to the US.

Malaysia's Movement Control (CPP) order was extended until April 14 following the COVID-19 case, furthering AirAsia's business uncertainty.

Malaysia is exploring the possibility of launching a rescue fund for domestic airlines affected by COVID-19.

Among the ideas considered are establishing units to take on debtors of companies like Malaysia Airlines Bhd and AirAsia.