AirAsia X proposes restructuring $ 15.3 billion in debt

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AirAsia X (D7, Kuala Lumpur International) has proposed to its creditors that a debt of MYR 63.5 billion (US $ 15.3 billion) be restructured through a rescheduling into a debt recognition for a nominal amount of up to MYR 200 million (US $ 48.2 million).

The Malaysian long-haul low-cost carrier proposed in an IPO that all outstanding amounts above the reconstituted value and all amounts, such as B. to waive interest accruing after June 30, 2020. The airline said the scheme would go into effect if approved by at least 75% of participating creditors who were in attendance at an upcoming judicial session.

A source told The Edge Malaysia Business Daily that around 70% of the debt is under the restructuring proposal airbus. AirAsia X also reportedly owes around MYR 6 billion (US $ 1.5 billion) to lessors.

According to the ch aviation fleets advanced Module operates AirAsia X twenty-four A330-300It hopes to maintain its fleet size of around 25 units in the future, although the aircraft will be used on a “rotational basis” in the near future. The airline has firm orders from Airbus for over thirty A321-200Ns, seventy-eight A330-900s and ten A350-900s.

At the same time, the airline proposed consolidating its shares and reducing 90% of its issued share capital by merging ten shares into one share. This would reduce the issued share capital from MYR 1.53 billion (US $ 370 million) to MYR 0.15 billion (US $ 3.6 million).

“The loan from the proposed capital decrease of MYR1.38 billion will be used to offset the company’s accumulated losses,” the airline said.

Subject to all relevant approvals, AirAsia X hopes to complete both the debt restructuring and share consolidation by the end of the first quarter of 2021.

The airline said it hopes to “take off with two aircraft in selected markets in the first quarter of 2021 and gradually resume flights to all destinations by the end of 2021”.

While AirAsia X had no plans to downsize its fleet in the future, the airline’s parent company did AirAsia group pursues a downsizing strategy. Group Chief Executive Tony Fernandes told reporters during a briefing that the holding company will stop adding new aircraft in the near future and will be returning around 60 jets to lessors by the end of 2021.

“We’re not going to buy new airplanes, and we’re going to return as many as possible … I don’t see we’re getting into a position for a few years where we want to buy planes. And even if we want to buy planes, we will there are likely to be a lot of cheap used aircraft, “Fernandes said.

Including the 24 A330s operated by AirAsia X, the entire group’s fleet currently comprises 279 Airbus aircraft, 239 of which are narrowbody twin jets of the A320ceo and A320neo families. Fernandes said the group’s fleet is expected to be around 180 aircraft by the end of next year. In addition to the assignments attributed to AirAsia X, the group also has firm commitments for thirteen A320-200Ns and 349 A321-200Ns.

Besides trimming his fleet, AirAsia (AK, Kuala Lumpur International) has also announced that it will lay off around 10% of its workforce to meet lower demand. Fernandes said he hoped to be able to reinstate the affected staff once the crisis was over.

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