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Thai AirAsia X is looking for investors for major restructuring

Thai AirAsia X-IF-image

Thai AirAsia X is looking for investors for a major restructuring, according to the Executive Chairman of majority-owner Asia Aviation, Tassapon Bijleveld. The carrier is looking to complete the restructuring and relaunch its services in 2022.

Asia Aviation owns a 51 percent stake in Thai AirAsia X. After the restructuring, Asia Aviation will hold 40.7 percent of the shares. Bijleveld will own 18 percent of the shares.

Bijleveld further said that the carrier had to switch its wide-body Airbus A330 jets to cargo service to stem financial losses. AirAsia X had 11 aircraft in its fleet, however, now it is reduced to seven.

“Border closures should not be an option to prevent the spread of the Omicron variant as the national economy and cash-strapped tourism sector, in particular, cannot afford to survive another lockdown,” he told the media.

Recently, the carrier received shareholder approval to raise $415 million through a mix of shares to be issued to new and existing investors as well as convertible bonds.

Last month, Thai AirAsia X announced its decision to further reduce its workforce and also extend furloughs despite the country’s reopening on November 1st.

In this regard Tassapon Bijleveld told the media, “Even though we’ve negotiated with suppliers and banks to help offload aircraft leasing costs, and we may get additional liquidity after restructuring this month, our balance sheet cannot be strong enough if those expenses still run. We have to permanently cut the fleet for at least two years or until international and domestic flights fully recover.”

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