News
AirAsia X warns action on passenger creditors could have dire consequences
November 16th 2021
AirAsia X (AAX) has warned its hard-won restructuring plans could still fail as it responded to reports of a Malaysian Aviation Commission (MAVCOM) threat to take action if the LCC did not reimburse passengers for tickets purchased. Read More » The company’s proposed restructuring was approved by 99% of creditors on November 12, delivering them with just 0.5% of debt owed. But MAVCOM has told the company to reassess any proposal to treat passengers as creditors and warned it could take action if it did so. In a statement issued yesterday, AAX said it is in the best interest of passengers to allow the airline to fly again so it would be in the position to honour travel credits. “We assure all passengers affected by the restructuring it is the firm intention of AAX to put in place travelling privileges in the form of travel credits that can be utilised for future purchases of flight tickets once international borders reopen. This will be on top of the 0.5% they will receive and other cash-based entitlements calculated on annual revenue performance over three years as explained in the Explanatory Statement issued to all creditors recently,’’ it said. “Please note these entitlements and travel credits only can take place if AAX is successfully restructured pursuant to the terms of the Scheme. If the terms of the Scheme are not complied with and the Scheme fails, AAX will go into liquidation and [its] passengers will not receive anything in return. It is not the intention of AAX to place the passengers in this situation.” AAX said its policies were in line with many operators in the travel industry worldwide and that it had an ongoing dialogue with all consumer regulators across the region to ensure compliance.
