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(Oct 17): AirAsia X Bhd is liquidating its Indonesian arm in a bid to survive the Covid-19 pandemic that has grounded the low-cost carrier’s planes since late March.
AirAsia Group Bhd’s long-range division has also scored its 49% stake in Thai AirAsia X, said the airline’s vice president, Datuk Lim Kian Onn, in an interview with The star Newspaper.
These efforts come amid AirAsia X’s proposed restructuring plan to eliminate nearly RM63.5 billion in debt and save it from collapse. The proposal requires the approval of investors and creditors.
Initial negotiations with creditors were difficult as they were understandably upset, Lim said in the interview. They had asked for better conditions, including free capital for debt forgiveness, something that would be impossible for the airline to meet, he added.
Still, Lim said everyone really wants to find common ground to move the airline forward. “Nobody has anything to gain from our disappearance,” he told the newspaper.
The airline plans to resume flights in the first quarter (Q1), although the process remains “dynamic,” Lim said. If the rescue plan is approved, the company will have to renegotiate each contract and do everything possible to ensure the interests of all stakeholders, he said.
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