by ANIS HAZIM / Pic by TMR FILE PIX
AIRASIA X Bhd (AAX) has affirmed that passengers affected by its debt restructuring will be entitled to receive compensation under its scheme through a small amount of payment.
In a recent notification to its customers, AAX said the scheme was voted in at the creditors convened meeting (CCM) on Nov 12 with a success of 99% from all classes.
“Under the restructuring law, besides being a shareholder, a passenger is either a debtor or a creditor.
“Since we (AAX) owe you (passengers) money, by definition, you are a creditor of ours and are entitled to the compensation under the scheme through a very small amount of payment, which is all that can be afforded at this stage,” said AAX.
Additionally, the passengers are also entitled to profit-sharing of the airlines’ profits in the years to come.
“More importantly, it is our intention that you will also get to utilise the money that we owe you in the form of travel credits to use for flight ticket purchases when we fly again, in full amount,” it stated.
According to AAX, the airline will go out of business if the restructuring fails.
“So 99% of our creditors, even though we owe them vast amounts of money, have concluded that the airline is more useful to them being in operation rather than not,” it added.
AAX stressed that the travelling privileges in the form of travel credits can be used for future purchases of flight tickets once international borders reopen.
AirAsia X’s debt-restructuring proposal received more than 95% support from creditors recently.
The airline received full support from two classes of creditors on its proposed debt restructuring and 97.6% from the third group, it said in separate statements to the Malaysian stock exchange. AirAsia X needed at least 75% support from each class of creditors, which include Airbus SE, BOC Aviation Ltd. and Rolls-Royce Holdings Plc.
Last week, the Malaysian Aviation Commission (Mavcom) said it “has clearly and unequivocally urged AirAsia X Bhd (AAX) to reassess its proposal to treat air travel consumers as creditors and to pay only 0.5 per cent of the value of tickets purchased as announced on Oct 18, 2021.”
Mavcom said it “takes the view that air travel consumers ought not to be classified as creditors as air travel consumers did not, inter alia, sell any products, provide services or make loans to AAX but instead have paid monies for the purchase of tickets in advance of their flights.”
“Accordingly, Mavcom reiterates its position that AAX should reimburse air travel consumers for the tickets purchased. If AAX fails to reimburse the affected air travel consumers accordingly, MAVCOM will not hesitate to exercise its powers under the Malaysian Aviation Commission Act 2015 (Act 771),” the civil aviation regulator said in a statement.
Separately, The Malaysian Reserve (TMR) contacted the regulator regarding AAX clarification, however, Mavcom declined to comment.