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Thai AirAsia X files for bankruptcy protection



Thai AirAsia X, the long-haul arm of the Thai unit of Malaysia’s budget carrier AirAsia Group, has become the third airline in Thailand to file for bankruptcy protection in a case that has been taken up by Thailand’s bankruptcy court, the airline said in a statement. May 19. The airline follows Thai Airways and Nok Airline, both of which filed for bankruptcy protection at the height of the Covid-19 pandemic. According to the press release, the purpose of the document is to reform Thai AirAsia X’s management processes and restructure its debt after weathering the COVID-19 pandemic. This process will not affect…

Thai AirAsia X, the long-haul arm of the Thai unit of Malaysia’s budget carrier AirAsia Group, has become the third airline in Thailand to file for bankruptcy protection in a case that has been taken up by Thailand’s bankruptcy court, the airline said in a statement. May 19.

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

According to the press release, the purpose of the document is to reform Thai AirAsia X’s management processes and restructure its debt after weathering the COVID-19 pandemic. The process will have no impact on passengers as operations will continue as usual, with Thai AirAsia X preparing to reintroduce flights to South Korea and Japan from June 2022.The airline insists all reserved seats will be honored

“Huge debt”

“It is difficult to raise funds as the airline has taken on a lot of debt. The restoration plan approved by the court in the next phase will be a viable solution to sustain the business in the long term,” said Tassapon Bijleveld, director of Thai AirAsia X.

He said the airline had long considered the option, but since the long-haul carrier had grounded its entire fleet for more than two years without any international flights, it was impractical to properly initiate the recovery process.

However, Bijleveld added that the airline can implement business plans, especially flight expansion, after border controls are lifted and travel restrictions are eased in many countries, noting that Thai AirAsia X’s more than 1,000 employees will not be affected at this stage because the Companies will have to “wait and see” how rehabilitation programs develop.

Recovery can take up to a year

“We hope that the repair process will be completed within eight to 12 months with minimal impact during the transition period. During this period, all flight expansions will be the same as announced,” he said.

The redevelopment plan will not have any impact on the domestic and regional operations of Thai AirAsia and its controlled AirAsia, which are separate corporate entities with different ownership structures.

AirAsia is a company listed on the Stock Exchange of Thailand and holds a 100% stake in Thai AirAsia, while Thai AirAsia X is an independent joint venture of AirAsia X with Malaysia and Thai AirAsia.



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