Central Bankruptcy Court Approves Rehabilitation Plan for Thai AirAsia X
The Central Bankruptcy Court has given approval to the business rehabilitation plan of Thai AirAsia X, which was revised in accordance with decisions made by a conference of creditors on 14 July 2023.
Following this decision, Thai AirAsia X is now again ready to pursue continual growth. As part of its expansion plan, it will be adding aircraft to its fleet, opening new routes to increase cash flow and revenue, and efficiently managing capital.
Thai AirAsia X will thus begin a planned process of repaying debts and refund payments to passengers impacted by the inevitable cancellation of flights during the Covid-19 pandemic.
Tassapon Bijleveld, Chief Executive Officer of Thai AirAsia X said: “Following today’s approval of the Thai AirAsia X business rehabilitation plan, and on behalf of the administrator’s team of the rehabilitation plan, we are thankful for the support of all the company’s creditors as well as the Central Bankruptcy Court. This decision and approval mark an important step forward and prove that Thai AirAsia X has proceeded along the right path in the interest of its creditors and other stakeholders impacted by recent developments. The approval will also bolster confidence in the company’s operations and its readiness to continue to grow steadily and sustainably.
“After alleviation of the COVID-19 pandemic, Thai AirAsia X has returned to a stabilised operation mode, maintaining its strength as a leading low-fare medium-haul carrier dedicated to serving its core markets including Japan and South Korea. We have targeted to return to close to our pre-pandemic capacity by the end of 2024 and have accelerated expansion in the Australian and Chinese markets while also seeking out high potential growth opportunities in India and the Middle East, where we see significant future demand.” Tassapon said.
With the approval from the Central Bankruptcy Court for its business rehabilitation plan, Thai AirAsia X has outlined the following strategies for growth:
Fleet Expansion for Revenue - Thai AirAsia X currently operates a fleet of six aircraft and will be expanding this fleet in accordance with its rehabilitation plan by three to five additional aircraft within 2024 and by another eight aircraft by 2028, bringing the total fleet to 17. This fleet size will enable Thai AirAsia X to serve a robust network of routes and destinations operating out of Suvarnabhumi Airport, also creating opportunities for building upon the carrier’s cargo business.
Operational Cost Reduction - This will be achieved largely through aircraft leasing and aircraft maintenance agreement negotiations.
Effective Debt Management - Thai AirAsia X is to begin repaying creditors and reimbursing passengers impacted by flight cancellations during the Covid-19 pandemic. The payment plan will be carried out sequentially in line with the company’s business turnaround plan.
Nonetheless, passengers who wish to substitute their refund for a travel voucher may do so immediately and be able to utilise the funds for Thai AirAsia X (XJ) flights to destinations currently operating in Japan, South Korea, Australia and China. Passengers may email their intent to receive a travel voucher to [email protected]
