KUALA LUMPUR: Hong Kong-listed global aircraft operating leasing company BOC Aviation Ltd (BAL) has filed a claim on AirAsia X Bhd and its wholly-owned subsidiary AAX Leasing Two Ltd (ALT) for US$22.9 million.
According to a Bursa Malaysia filing today, AAX and ALT received a letter dated 19 August 2020 issued by Morgan, Lewis & Bockius UK LLP behalf of BAL filed in the High Court of Justice in the Business and Property Courts of England and Wales on 19 August 2020.
In the BAL claim, ALT had alleged breach obligations under the lease agreements while AAX had alleged breach obligations under four guarantees to lease agreements.
To note, ALT has leased four aircraft from BAL pursuant to four individual aircraft lease agreements.
BAL is claiming the sum of US$22,975,392.17 from AAX and ALT representing the outstanding amounts due as a debt under the lease agreements and the guarantees.
According to news report, AAX leases 17 A330-300 aircraft from nine lessors, with BAL and ICBC Leasing having three aircraft each at AAX.
AAX's ongoing financial problems coupled with the coronavirus outbreak and subsequent downtown in travel demand has dragged the carrier's financial burden further, causing the airline to put off lease payments.
For the second quarter (Q2) ended June 30 2020, AAX net loss stood at RM305.2 million while revenue was at RM91.4 million against RM1.01 billion posted in the same period in 2019.
The airline continues to be in hibernation mode, maintaining only minimal operations in support of the repatriation of travellers and transportation of cargo.
AAX in the filing said the financial impact to the company will be a cash outflow equal to the said amount of the claim, however, there will be no operational impact to the company.
The board of AAX is currently reviewing the documentation received in respect of the said claim and will be seeking legal advice to the said claim, the filing said.