Thai AirAsia X becomes third Thai airline to file for bankruptcy

Thai AirAsia X, the international low-cost carrier under the AirAsia umbrella, has had its bankruptcy petition accepted by a Thai court. This makes it the third Thai airline, along with Nok Air and Thai Airways, to file for bankruptcy since the start of the Covid-19 pandemic.

TAAX director Tassapon Bijleveld said all existing reservations will be honored, including flights to South Korea and Japan, which are expected to start next month.

Thai Air Asia X is an international low cost carrier for flights to and from Thailand and is not directly financially linked to Thai Air Asia.

“It was difficult to raise funds as the airline took on a significant debt. A court-approved rehabilitation plan in the next stage will be a viable solution to sustain the business for the long term.

He adds that the airline had been contemplating the path of bankruptcy for some time, but with the international fleet having been grounded for over 2 years, initiating a proper rehabilitation process proved unfeasible. The lifting of travel restrictions and the reopening of borders means the airline can now begin to implement a business plan.

“We hope the rehabilitation process will be completed within 8-12 months and will have minimal impact during the transition period. Meanwhile, all flight extensions remain the same as announced.

According to a Bangkok Post, once TAAX begins the rehabilitation process, it will prepare a plan to improve its financial situation and ensure that services are running at full capacity. The airline says the rehabilitation plan will not affect Thai AirAsia and Air Aviation Plc, which are separate entities.

The move follows the completion of AirAsia X’s Malaysian debt restructuring process in March.

Separately, the resumption of AirAsia flights between Hua Hin and Kuala Lumpur, which was scheduled to begin on June 1, has been delayed. According to a report by Hua Hin Today, flights will not resume again until July, with the carrier currently only supporting flight bookings from July 31.

THE SOURCE: Bangkok Post | Hua Hin today

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