KUALA LUMPUR: Low cost airline AirAsia X Bhd says it will provide travel credits for passengers who are affected by its debt restructuring.
The credits can be utilised for future purchases of flight tickets once international borders reopen.
"In a financial statement, besides being a shareholder, there are only two categories. A party is either a debtor if they are owing money to the company or a creditor if the company owes them money. It is clear that the company owes the passengers who have outstanding amounts owed to them, and hence the classification as creditors," AirAsia X said in a statement today.
"We assure all passengers affected by the restructuring that it is the firm intention of AAX to put in place travelling privileges in the form of travel credits, which can be utilised for future purchases of flight tickets once international borders reopen on top of the 0.5 per cent they will receive and other cash based entitlements based on annual revenue performance over three years as explained in the Explanatory Statement issued to all creditors recently," it added.
AirAsia X said the entitlements and travel credits can only take place if the airline was successfully restructured.
"If the terms of the scheme are not complied with and the scheme fails, AAX will go into liquidation and the passengers will not receive anything in return. It is not the intention for AAX to place the passengers in this situation," it added.
AirAsia X's scheme of arrangement had been supported by 99 per cent of all creditors during a meeting on Nov 12.
The airline said its priority was to comprehensively restructure and recapitalise so that it can operate again as one of the world's leading low cost medium haul operators.
"Our focus to raise new capital is necessary because the airline has not received any external financial support during this pandemic or any such time before. As such, the airline must reset and rebuild a solid platform for a sustainable and viable future so that new investors will be prepared to inject new capital into."
Passengers had previously expressed frustration over AirAsia X's proposal to pay only 0.5 per cent of RM33 billion debt owed to each of its creditors and passengers.
That works out to just five sen for every RM10 and RM50 for anyone who had bought tickets for RM10,000.