News
Thai AirAsia plans layoffs as restructuring to be submitted to creditors
November 22nd 2021
Thai AirAsia major shareholder, Asia Aviation (AAV), is due to put its restructuring plan to creditors this week amid reports the LCC is planning mass layoffs and a fleet reduction due to the pandemic. Read More » The Bangkok Post has reported AAV executive chairman, Tassapon Bijleveld, told Thai AirAsia employees of the layoffs last week. Tassapon said the balance sheet could not cope with existing costs despite negotiations with suppliers and the additional liquidity that could flow from the restructuring. “We have to permanently cut the fleet for at least two years or until international and domestic flights fully recover," he was quoted as saying. The airline is looking at reducing its fleet from 60 to 54 aircraft, the newspaper said, and is due to decide this week how many employees will lose their jobs. The restructuring plan to be put before shareholders on November 26 aims to raise up to 17.9 billion baht (US$536 million), including 14 billion baht secured by convertible bonds and new shares. It also outlines a planned AAV raising of 8.8 billion baht by increasing its registered capital and offering newly issued ordinary shares on a private placement. This will result in AirAsia Aviation Limited being offered an additional investment of 7.8 billion baht and individual investors shareholdings of up to 1 billion baht. The plan requires another 2.2 billion baht to be raised from the sale of convertible bonds and 3 billion baht from a rights offering. Additionally, there are plans to secure loans of 3.9 billion baht.
