Bangkok’s Central Bankruptcy Court has sanctioned the business rehabilitation plan for Thai AirAsia X. The plan, which saw adjustments following a creditors’ conference on July 14, 2023, positions the company on a path to steady and sustainable growth. This development includes fleet expansion, new route development to boost cash flow and revenue, and capital management optimization.
As part of the resolution, Thai AirAsia X is slated to commence a structured process to settle debts and facilitate refunds to customers affected by flight cancellations amidst the COVID-19 pandemic.
Tassapon Bijleveld, Thai AirAsia X CEO, said «Today’s nod from the court amplifies confidence in our operations and signifies that the company is aligned with the interests of its creditors and other stakeholders affected by recent events.»
He further noted, «In the post-COVID-19 era, the airline has regained stability, reaffirming its status as a foremost low-fare medium-haul carrier, primarily serving markets in Japan and South Korea. We are keen to approach our pre-pandemic capacity by late 2024 while fast-tracking growth in the Australian and Chinese sectors. Concurrently, we are exploring lucrative opportunities in India and the Middle East, anticipating considerable demand in the future.»
Thai AirAsia X’s business rehabilitation plan:
Fleet Expansion to Elevate Revenue
Currently operating six aircraft, the company intends to augment its fleet in line with the rehabilitation blueprint, adding 3-5 aircraft by 2024 and another eight by 2028, totaling 17. This expansion facilitates a substantial network of routes from Suvarnabhumi Airport, potentially augmenting the carrier’s cargo business.
The strategy primarily hinges on renegotiating aircraft leasing and maintenance agreements to curb expenditures.
Efficient Debt Management
The company will initiate a phased approach to repay creditors and reimburse customers impacted by the pandemic-induced flight cancellations. Alternatively, passengers can opt for a travel voucher to book Thai AirAsia X flights to active destinations including Japan, South Korea, Australia, and China immediately.
