Malaysia Airlines has urged the Malaysian government to treat all domestic carriers equally in any decision to provide financial assistance to airlines in financial distress including budget carrier AirAsia Group Bhd.

Malaysia Airlines Group Chief Executive Officer Nasaruddin A. Bakar said in an interview on the sidelines of the Association of Asia-Pacific Airlines' annual meeting in Kuala Lumpur that any public financial support given to one airline should also be available to its competitors.

“It has to be on an even keel,” Bakar said. "If you give it to one airline, you have to give it to all the other airlines too."

The comments come amid growing concerns about AirAsia’s financial situation and the potential effect on Malaysia’s domestic and international air connectivity. Shares in AirAsia fell in September after reports that the government had held talks with other domestic airlines, such as Malaysia Airlines, on contingency plans in case the budget carrier had to suspend some routes because of worsening financial problems.

Malaysia Airlines says it's prepared to step in and increase its operations if AirAsia experiences more significant operational setbacks. The national carrier of the country believes it is its responsibility to maintain connectivity throughout Malaysia.

Bakar said Malaysia Airlines would need more planes and personnel to deal with any substantial rise in demand if AirAsia faced problems. But he stressed any expansion would be dependent on the additional capacity being operated safely and on a financially sustainable basis.

Discussions in the government about potential aid for AirAsia have also advanced. The Malaysian state news agency Bernama reported in late October that the Ministry of Transport and the Ministry of Finance were reviewing proposals to support the struggling airline.

The government, however, has not pledged any financial aid for AirAsia.

Bakar said Malaysia Airlines had a responsibility to maintain the nation’s air links but its response would have to be commercially viable and operationally sustainable.

Meanwhile, AirAsia shares were trading about 2% lower in Thursday’s trading session as the market continued to focus on the airline’s financial health.