Thai AirAsia X confident of taking off after bankruptcy setback

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Budget airline Thai AirAsia X insists it will recover from its bankruptcy petition and promises to honor its pledge to refund customers who booked flights with the company during the Covid outbreak -19.

Thai AirAsia X filed for bankruptcy on May 17 to become the third Thai airline to do so after the pandemic in 2020. But company director Tassapon Bijleveld believes that if creditors vote in favor of the bankruptcy petition that they presented to the court, the airline will recover from the economic setback of Covid by the end of 2023.

Tassapon also added that the 6,500 reservations made before the company’s bankruptcy process and new reservations from May 17 will not be affected by the legal proceedings. It says these reservations will be eligible for a cash or credit refund.

“Under bankruptcy protection, we can negotiate the debt reconciliation, which could help ease our financial burden and allow us to focus on expanding flights as planned. If operating revenues are strong enough , we may not have to seek new investors or partnerships to raise capital.

Tassapon revealed that the airline can continue to operate overseas flights as usual despite the bankruptcy process, adding that Thai AirAsia X plans to resume all destinations to South Korea and Japan this year. .

The Bangkok-based airline has faced 2 difficult years. Not only has it had to deal with the coronavirus outbreak, but rising fuel costs have hit the business hard. Fuel accounts for about 50% of total costs after doubling from $75-85 a barrel last year to $170 a barrel.

Tassapon says the airline could not pass that cost on to passengers. But, following demand from Thai and Korean passengers this month, Thai AirAsia X is optimistic that it can bounce back despite operating at a loss at the moment.

Thai AirAsia X chief manager Patima Jeerapaet says there is strong demand for South Korea.

“The proportion of Thai and South Korean customers is the same at 50%. We will be operating daily flights in October to meet growing demand. During this period, we plan to resume flights to Osaka and Sapporo in Japan. »

THE SOURCE: Bangkok Post

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