Thursday, June 30, 2022

Thai AirAsia X files for bankruptcy

It says the objective of its rehabilitation process is to revamp the company's administration process and restructure its debts and that operations will continue as usual.

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Low-cost, long-haul carrier Thai AirAsia X has begun preparations to initiate a rehabilitation process after its application for bankruptcy protection was accepted by Thailand’s Central Bankruptcy Court.

In a statement on May 19, it said the objective was to revamp the company’s administration process and restructure its debts, adding that the process would have no impact on passengers as operations would continue as usual.

It also said that the filing for rehabilitation would have no impact on Thai AirAsia or Asia Aviation Plc, which are separate entities with “discrete operations and routes”.

“Thai AirAsia X has entered into rehabilitation at an appropriate time with tourism recovering and the nation reopening,” Thai AirAsia X chief executive Patima Jeerapaet said.

He added that the decision to enter into rehabilitation was to enhance the administration process in the best interests of its business progress, especially in terms of managing the company’s debt which he said had been impacted over the past two years of pandemic.

He voiced confidence that the carrier’s stakeholders would support the move.

Thai AirAsia’s application for bankruptcy protection was submitted on May 17 and accepted by the Thai Central Bankruptcy Court on May 18.

It is looking to introduce flights to South Korea and Japan from June onwards, with further plans for expansion including more flight frequencies and new routes in line with demand.

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