Budget carrier AirAsia has offered to take on staff and aircraft from ailing Malaysia Airlines if it wins approval to ply most of the national airline's domestic network, a report said today.

AirAsia chief executive Tony Fernandes said he had submitted the offer to the government, which could see the carrier recruit up to 800 Malaysia Airlines (MAS) staff, and buy or lease between four and nine of its current B737s.

"These are among the proposals that we have put forward to help the government cap losses in MAS domestic operations," he was quoted as saying in the New Straits Times .

"The market for aircraft is very buoyant right now. There is so much demand for the 737-400. This could generate a lot of cash for (Malaysia Airlines), which is good for their turnaround plan," he added.

Loss-making Malaysia Airlines this week announced a three-year rescue plan to return the carrier to profitability, which includes proposals for a revamp of its domestic network.

Prepared immediately

Budget carrier Air Asia has been lobbying the government to expedite a plan to rationalise domestic air routes and has offered to take over the lion's share of Malaysia Airlines routes.

Fernandes said his budget carrier, which derives much of its business within Malaysia, stood at the ready to take on the routes.

"We are prepared to take on the responsibility almost immediately. In addition, we can also guarantee that the services provided will be profitable as we will use our present business model," he was quoted as saying in the NST.

AirAsia, which launched as a budget carrier in December 2001 with just two aircraft, has become a significant player in the industry and been imitated by national carriers along with a host of new low-cost entrants.

It is now Southeast Asia's biggest low-cost carrier in terms of fleet size. It also operates in Thailand, Indonesia, the Philippines and China.