Thai AirAsia X Files files for bankruptcy protection while resuming some flights
Thai AirAsia X, the long-haul low-cost airline of the AirAsia Group, said its application for bankruptcy protection had been granted by Thailand’s central bankruptcy court.
“Thai AirAsia X has entered rehabilitation at an appropriate time with the resumption of tourism and the reopening of the nation,” Patima Jeerapaet, chief executive of Thai AirAsia X, said in a statement. statement released Thursday.
The carrier says it aims to revamp its administrative process and restructure its debt as part of its efforts to deliver greater efficiency and establish a solid platform for future growth. The company did not disclose the figure of its debts.
Thai AirAsia X said the process would have no impact on its operations and it plans to resume flights to South Korea and Japan from June. The airline had suspended all flights since March 2020.
Thai AirAsia X is a joint venture between AirAsia X of Malaysia and Thai AirAsia, but the restructuring process will have no impact on these two carriers.
“It was difficult to raise funds because the airline had a large debt. A court-approved rehabilitation plan in the next stage will be a viable solution to maintain operations in the long term,” said Tassapon Bijleveld, director of Thai AirAsia X., told Bangkok Post.
The carrier will draft a rehabilitation plan and bolster its liquidity to ensure it can operate at full capacity. Over the past two years, Thai AirAsia X has reduced its fleet from 12 to eight aircraft. The airline is the third to file for bankruptcy in Thailand after Thai Airways and Nok Air.
The International Air Transport Association (IATA) mentioned in March that air traffic in Asia will reach 68% of the region’s pre-pandemic level this year, and is expected to fully recover in 2025.