Malaysia’s AirAsia X (AAX) creditors voted to approve the carrier’s restructuring plan on November 12, 2021.
99% of AAX creditors across three groups voted to approve the carrier’s restructuring plan, which includes repaying 0.5% of its 33.65 billion Malaysian ringgit ($8.1 billion) debt owed to its creditors and ending its existing contracts. The airline’s creditors include airports, maintenance providers, lessors, engine suppliers, travel agents, trade creditors, passengers, and aircraft manufacturers.
“This overwhelming and near unanimous support will be presented for court sanction in the coming weeks,” in a press statement dated November 12, 2021, AAX announced. “Once approved, the airline will embark on its recapitalization which was approved by its shareholders in June 2021.”
The completion of the airline’s recapitalization is expected in the first quarter of 2022.
“We would like to thank all our furloughed pilots, crew and support staff and assure them that all of them will be further brought back to full employment in the coming months as borders open up,” Tan Sri Rafidah Aziz, Chairman of AAX, said.
AAX has also reached a deal with the largest creditor Airbus to reduce its aircraft order from 78 Airbus A330neo and 30 A321XLR aircraft to 15 A330neos and 20 A321XLRs, an Airbus spokesperson told Reuters.
Currently, AAX has a total of 20 Airbus A330neo aircraft in its fleet, according to Planespotters.net. In a statement, the carrier said that it currently operates four A330s for its regional cargo flights with a further two to be operational by the end of 2021.
The long-haul subsidiary of AirAsia Group, AAX first announced its debt restructuring scheme as a measure to escape liquidation in October 2020.