Thai AirAsia X seeks for new investors as flights to resume next year

Thai AirAsia X flight. Photo/ Flickr.

Thai AirAsia X under the AirAsia group, is seeking new investors for a major restructuring in order to resume international flights next year, after a two-year halt of its low-cost carriers.

According to Tassapon Bijleveld, executive chairman of SET-listed Asia Aviation (AAV), and a shareholder of Thai AirAsia X, the 11-aircraft fleet was reduced to seven earlier this year, and one of them was converted into a cargo service to avoid financial losses.

He added Thai AirAsia X needs more cash to launch passenger flights, which are likely to resume next year as Thai AirAsia received extra fundings last week.

Since tourists have begun to inquire about the resumption of international flights, prompting the airline to begin ticket sales for the Bangkok-Incheon (South Korea) route in April 2022, Tassapon said that borders will reopen by then hopefully.

“Border restrictions should not be considered as a means of preventing the spread of the Omicron variant since the national economy, particularly the cash-strapped tourism sector, cannot sustain another lockdown.”

He also said that the government should learn to live with the virus after all by providing sufficient protection for local communities through the use of vaccinations and medications, allowing the economy to continue as usual, adding that Thai AirAsia X is in talks with a few possible investors and will begin restructuring by next year.

TAA also approved the restructuring proposal on November 26 at a meeting, allowing the airline to raise an additional 14 billion baht.

Tassapon will control 18% of the shares under the new structure, down from 40.52% now, while AirAsia Aviation, the investment arm of AirAsia Group Berhad, will hold 40.7% followed by commercial banks at 5.3% and new individual Thai investors at 5.2%.

Despite the fact that TAA is due to get its first round of new cash by mid-December, cost-cutting measures must continue until air travel recovers fully. But sadly, it would have to say goodbye to more than 400 employees from its overall workforce of 5,000 during layoffs last month. Some employees choose to participate in the company’s early retirement program.

SOURCE: Bangkok Post

Thailand News

Related Articles