AIRASIA X Bhd (AAX) wishes to clarify some queries and concerns raised with reference to recent media articles regarding the ongoing debt restructuring process of AAX under its proposed scheme of arrangement and the recent explanatory statement (ES) which was recently distributed.
In particular, AAX takes note of the queries concerning the claims of passengers being compromised to 0.5%.
Our business partners and supporters including our guests and passengers are vital and important to AAX and AAX values this relationship and had taken this into consideration in formulating its debt restructuring exercise.
Para. 2.8(v) of the ES provides that where the AAX debt restructuring exercise is approved by scheme creditors and sanctioned by the High Court of Malaya and AAX is able to operate again, travelling privileges may be extended from time to time to passengers and AAX reserves the right to do so in such manner as it deems fit for business efficacy and to foster goodwill.
We wish to assure that where the AAX debt restructuring exercise is successful, it is the intention of AAX to put in place travelling privileges in the form of travel credits which can be utilised for future purchases of flight tickets or other goods or services provided by AAX in the future once international borders reopen.
AirAsia X
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Editor’s Note: Below are relevant FAQs (frequently asked questions) on the explanatory statement (ES)
Q: When will the proposed debt restructuring complete?
A: The proposed corporate debt restructuring is anticipated to be completed before the end of the year, subject to the approval and/or confirmation by the authorities, scheme creditors and the High Court.
Q: What is the status of the monies I paid for bookings earlier?
A: In general, the scheme is intended to compromise the debts of AAX and release AAX from all claims and liabilities in accordance with the terms of the scheme including any claims for refunds.
Notwithstanding, AAX recognises the support of passengers and the importance of their goodwill and intends to put in place a form of travel credits to reward such passengers. The travel credits are not obligatory and if implemented, shall be provided at AAX’s discretion and in such manner and upon such terms as it deems fit.
Q: Why is the amount stated in the explanatory statement different from the receipt of my booking?
A: Please note that the amount stated in the explanatory statement will be based on the bookings made under AirAsia X Malaysia (flight code D7). For Fly-Thru flights, please check with the respective airlines (for flight codes AK, QZ, FD, Z2) for your entitlement status.
Only the D7 flight part of the booking is affected by the AAX restructuring exercise. The fare difference of your Fly-Thru booking between your AirAsia X Malaysia (flight code D7) and other AirAsia airlines (flight codes AK, QZ, FD, Z2) is based on the system allocation of the fare amount paid for the D7 portion versus the amount paid for booking an onward flight on another AirAsia airline.
For the entitlement status of the Fly-Thru bookings on other affiliate AirAsia airlines, please contact the respective airline separately via AVA at support.airasia.com.
Q: When will AAX resume its operations?
A: AAX’s goal is to resume normal operations once the restructuring process is successful and relevant travel/border restrictions allow.
While the successful completion of the proposed debt restructuring may help address the current financial condition of AAX and alleviate the risk of AAX being wound up, the future prospects of AAX post-restructuring will still be dependent on a number of factors outside the airline’s control.
This include vaccination roll-out for COVID-19 in key markets, if the COVID-19 pandemic within countries can be contained, when international borders will be opened for travellers, the overall outlook of the aviation industry in Malaysia and internationally, fluctuation of fuel prices and the Malaysian and global economic conditions.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
