Thai AirAsia X becomes third airline in Thailand to file for bankruptcy

Thai AirAsia X, the international low-cost carrier under the AirAsia umbrella, has had its bankruptcy claim accepted by a Thai court. This makes it the third airline in Thailand, along with Nok Air and Thai Airways, to file for bankruptcy since the start of the Covid-19 pandemic.

TAAX director, Tassapon Bijleveld, says all existing bookings will be honoured, including flights to South Korea and Japan, scheduled to start next month.

Thai Air Asia X is a budget international carrier for flights in and out of Thailand and not directly financially linked to the domestic Thai Air Asia.

“It was hard to raise funds as the airline shouldered a large amount of debt. A rehabilitation plan approved by the court in the next stage will be a viable solution to maintain business in the long run.”

He adds that the airline has been considering the bankruptcy route for some time, but while the international fleet was grounded for over 2 years, starting a proper rehabilitation process proved impractical. The lifting of travel restrictions and re-opening of borders means the airline can now begin implementing a business plan.

“We hope the rehabilitation process will be finished within 8-12 months and have a minimal impact during the transition period. During this time, all flight expansion remains the same as announced.”

According to a Bangkok Post, once TAAX begins the rehabilitation process, it will prepare a plan to improve its financial status and to ensure services are at full capacity. The airline says the rehabilitation plan will not affect Thai AirAsia and Air Aviation Plc, which are separate entities.

The move follows the completion of Malaysia’s AirAsia X debt restructuring process in March.

In related news, the resumption of AirAsia flights between Hua Hin and Kuala Lumpur, due to begin on June 1, has been delayed. According to a Hua Hin Today report, the flights will now not resume before July, with the carrier currently only taking bookings for flights from July 31.

SOURCE: Bangkok Post | Hua Hin Today