Thai AirAsia X files for bankruptcy protection

Thai AirAsia X, the long-haul division of the Thai unit of Malaysian budget airline AirAsia Group, has become the third airline in Thailand to file for bankruptcy protection, with the case accepted by a Thai bankruptcy court, the carrier said in a statement on May 19.

The company follows Thai Airways and Nok Air which both filed for bankruptcy protection at the height of the Covid-19 pandemic.

According to the statement, the objective of the filing is to revamp Thai AirAsia X’s administration process and restructure its debts after weathering the pandemic. The process will have no impact on passengers as operations will continue as usual and Thai AirAsia X prepares to reintroduce flights to South Korea and Japan from June 2022 onwards. The airline insisted all seats that were pre-booked will be honoured.

“Large amount of debt”

“It was hard to raise funds as the airline shouldered a large amount of debt. A rehabilitation plan approved by the court in the next stage will be a viable solution to maintain business in the long run,” Thai AirAsia X director Tassapon Bijleveld said.

He noted the airline had been considering this option for a long time, but as the long-haul carrier has grounded its entire fleet for more than two years without any international flights, it was impractical to start the rehabilitation process properly.

However, after many countries lifted border controls and loosened travel restrictions, the airline is now able to implement a new business plan, including flight expansion, Bijleveld added, noting that more than 1,000 employees of Thai AirAsia X would not be affected at this stage as the company has to “wait and see how” the rehabilitation plan develops.

Rehabilitation could take as long as one year

“We hope the rehabilitation process will be finished within eight to 12 months and have a minimal impact during the transition period. During this time, all flight expansions remain the same as announced,” he said.

The rehabilitation plan would not have any impact on the domestic and regional operations of Thai AirAsia and its holding Asia Aviation, which are separate corporate entities with different ownership structures.

Asia Aviation is a corporation listed at the Thai stock exchange and holds 100 per cent of Thai AirAsia, while Thai AirAsia X is a separate joint venture of AirAsia X from Malaysia and Thai AirAsia.



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Thai AirAsia X, the long-haul division of the Thai unit of Malaysian budget airline AirAsia Group, has become the third airline in Thailand to file for bankruptcy protection, with the case accepted by a Thai bankruptcy court, the carrier said in a statement on May 19. The company follows Thai Airways and Nok Air which both filed for bankruptcy protection at the height of the Covid-19 pandemic. According to the statement, the objective of the filing is to revamp Thai AirAsia X’s administration process and restructure its debts after weathering the pandemic. The process will have no impact on passengers...

Thai AirAsia X, the long-haul division of the Thai unit of Malaysian budget airline AirAsia Group, has become the third airline in Thailand to file for bankruptcy protection, with the case accepted by a Thai bankruptcy court, the carrier said in a statement on May 19.

The company follows Thai Airways and Nok Air which both filed for bankruptcy protection at the height of the Covid-19 pandemic.

According to the statement, the objective of the filing is to revamp Thai AirAsia X’s administration process and restructure its debts after weathering the pandemic. The process will have no impact on passengers as operations will continue as usual and Thai AirAsia X prepares to reintroduce flights to South Korea and Japan from June 2022 onwards. The airline insisted all seats that were pre-booked will be honoured.

“Large amount of debt”

“It was hard to raise funds as the airline shouldered a large amount of debt. A rehabilitation plan approved by the court in the next stage will be a viable solution to maintain business in the long run,” Thai AirAsia X director Tassapon Bijleveld said.

He noted the airline had been considering this option for a long time, but as the long-haul carrier has grounded its entire fleet for more than two years without any international flights, it was impractical to start the rehabilitation process properly.

However, after many countries lifted border controls and loosened travel restrictions, the airline is now able to implement a new business plan, including flight expansion, Bijleveld added, noting that more than 1,000 employees of Thai AirAsia X would not be affected at this stage as the company has to “wait and see how” the rehabilitation plan develops.

Rehabilitation could take as long as one year

“We hope the rehabilitation process will be finished within eight to 12 months and have a minimal impact during the transition period. During this time, all flight expansions remain the same as announced,” he said.

The rehabilitation plan would not have any impact on the domestic and regional operations of Thai AirAsia and its holding Asia Aviation, which are separate corporate entities with different ownership structures.

Asia Aviation is a corporation listed at the Thai stock exchange and holds 100 per cent of Thai AirAsia, while Thai AirAsia X is a separate joint venture of AirAsia X from Malaysia and Thai AirAsia.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

 

 

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