Thai AirAsia X, the low-budget long-haul airline that belongs to the AirAsia Group, recently filed for bankruptcy protection with the Central Bankruptcy Court of Thailand (TCBC). As requested, the carrier also released an official statement, saying it had “entered into rehabilitation at an appropriate time” as tourism and its nation begin its process of reopening.
Once the TCBC fully reviews and grants bankruptcy protection to Thai AirAsia X, the carriers say it will then draft a recovery plan, to bolster its liquidity and ensure full operational capacity. On a related note, Thai Air Asia X also indicates that the rehabilitation filing will have no impact on Thai AirAsia (FD) and Asia Aviation Plc (AAC), both of which are separate entities from the carrier’s operations and routes.
It’s no secret that of all the airlines affected by the COVID-19 pandemic over the past two years, AirAsia has certainly felt the brunt of it. Throughout the lull, the carrier underwent a restructuring that ultimately turned into a massive dumpster fire; Air Asia X customers were unable to request refunds or credits for the restructuring, even worse, even if AirAsia refunded their tickets and credits, it would only be 0.5% of its value. ‘origin.
Things got so bad and heated that the following year, the Malaysian Aviation Commission (MAVCOM) had no choice but to step in and lay down the law on AirAsia X: issue full refunds to customers of their plane tickets, or face the consequences. Although to be clear, MAVCOM never specified what type of punishment it would impose on the carrier.
In the end, AirAsia X seemed to have bowed under the pressure, and in April this year it finally allowed customers with exceptional travel credits to redeem them for its flights.