AirAsia X to commence restructuring plan to facilitate fresh equity injection

6 October, 2020

AirAsia X announced (06-Oct-2020) it will to commence a restructuring plan, aimed at facilitating an injection of fresh equity to enable the carrier to continue operations. The restructuring will include the following:

  • Proposed debt settlement and waiver of debts involving unsecured creditors, aimed at enabling the Group to address its debt obligations and to arrive at a debt structure that is sustainable from future operating cash flows;
  • Route network rationalisation, aircraft fleet right sizing, cost base overhaul and workforce optimisation, all aimed at ensuring a leaner and more sustainable business going forward;
  • AirAsia X continues to engage all key business partners and hopes to enter into contracts, agreements or arrangements that are reflective and supportive of the airline's revised business plan upon successful completion of the restructuring.

The carrier stated over the last two months it has held "extensive discussions" with its major creditors, with all expressing "strong support" for a continuation of the business. AirAsia X CEO Benyamin Ismail said: "We have a low cost base, we are in the right part of the market and many of our key markets are in green zones which are likely to reopen first. We have a robust recovery strategy in place, and with the continued support from our stakeholders, we will overcome all challenges and come out stronger". He added: "Our immediate focus is to obtain all necessary approvals and execute the proposed restructuring plan over the next few months". [more - original PR]