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Report: AirAsia X touts possible fly-with-credit scheme to passengers if restructuring plan gets go-ahead

If the restructuring exercise is not approved, AAX has said it expects to liquidate. — Reuters pic

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KUALA LUMPUR, Oct 22 — Once AirAsia X Bhd’s (AAX) debt restructuring exercise is complete, travellers may be able to use credits they have with the airline to fly, according to a local news report.

Free Malaysia Today (FMT) reported today that AAX however said that it withholds the right to implement the travelling privileges as it sees fit for “business efficacy and to foster goodwill”, in accordance to its restructuring plan explanation statement.

“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 reportedly told FMT.

It added that the travelling privileges may be extended periodically.

AAX currently has some RM63.5 billion in debt, of which RM600 million is owed to passengers and travel agents.

The airline operator has proposed to pay back only 0.5 per cent of the debt owed to its creditors, and is waiting for the restructuring plan to pass through a vote by scheme creditors, at a court convened meeting on November 12.

If the restructuring exercise is not approved, AAX has said it expects to liquidate instead.

Reference