Malaysian cargo airline, Raya Airways, said it is not in talks with Air Asia for a possible takeover deal — refuting reports made by various outlets earlier, while noting that it is in a sound financial state and is poised for expansion.  

"On behalf of Raya Airways Sdn. Bhd. and after consulting with Raya's shareholders and Board of Directors, we would like to clarify that Raya and its subsidiaries/affiliate companies are not in any talks with AirAsia Group Berhad or any other parties for the acquisition of the Company or any part of its businesses," M Najib Ishak, group managing director at Raya Airways said in a LinkedIn post clarifying the matter. 

"As such, we would like to categorically state that the article is factually incorrect and misleading," he added.

The Raya Airways executive then noted that the cargo airline is in a sound financial standing.

"We wish to assure you that Raya’s operational and financial position is growing in strength and this would not be possible without the continuing strong support from our well wishers such as yourself," M Najib Ishak added.

"We are committed to continue and further strengthen our operations and opportunities to take Raya to its next stage of growth."

The cargo airline is based in Malaysia's Sultan Abdul Aziz Shah Airport in Subang, Selangor. 

Raya Airways offers scheduled and express delivery, aircraft charters, ground handling, warehousing, trucking connections  across the Asia-pacific region — operate in Malaysia, Indonesia, Singapore, Vietnam and Hong Kong.

Reports earlier said the AirAsia Group is eyeing Raya Airways to scale up its logistics business Teleport to take advantage of the ever-booming air cargo market.

A representative from Air Asia said the Group has "no comment" about the issue and referred to the statement from Raya Airways' group managing director instead.