Passengers may get to use credits if we fly again, says AirAsia X

 

AirAsia X owes about RM600 million to passengers and travel agents but will be liable to pay only 0.5% of that if its debt restructuring exercise is approved. (Bernama pic)

PETALING JAYA: AirAsia X (AAX) may allow passengers who have credits with the airline to utilise them for travelling once its debt restructuring exercise is approved and it is able to operate again.

However, the budget airline said it reserves the right to do so in such a manner it deems fit for business efficacy and to foster goodwill, as contained in a clause in the explanatory statement of the restructuring plan.

It said the travelling privileges for passengers with credits may be extended from time to time once the carrier is able to operate again after the debt restructuring exercise is approved by the creditors and sanctioned by the High Court on Nov 12.

“We wish to assure that where the debt restructuring exercise is successful, it is the intention of AAX to put in place travelling privileges in the form of travel credits.

“These can be utilised for future purchases of flight tickets or other goods or services provided by AAX in the future once international borders reopen,” it said in a statement to FMT.

AAX said its business partners, guests and passengers are vital and important to the company and that it valued the relationship, adding that it had taken this into consideration in formulating its debt restructuring exercise.

Yesterday, FMT reported that thousands of passengers who have credits with the airline were likely to get back only 0.5% of the amount owed to them under the debt restructuring exercise.

AAX owes about RM600 million to passengers and travel agents, and thus, should the debt restructuring exercise be approved it will have to pay RM2.9 million as settlement.

The long-haul budget carrier said if approved, the exercise will be a full and final settlement and the company will not be liable to any legal action from any creditor thereafter.

However, it warned that AAX was expected to go into liquidation if it fails to get the nod on the debt restructuring, according to an explanatory statement by AAX.

To illustrate how much passengers can expect to get, the airline said anyone who is owed RM2,000 will get RM10 as “profit-sharing” on the anniversary of the approval of this exercise, adding that they will get similar returns for four years after that based on a specified formula outlined. - FMT