Thai AirAsia X is working on a rehabilitation plan as it looks to recover from the impact of the COVID-19 pandemic. According to CEO Tassapon Bijleveld, the low-cost carrier is hoping to have the plan in place by next month and begin refunding and compensating passengers later this year. Let’s dive into the details of what this means for the airline and its passengers.
Rehabilitation Plan and Negotiations with Creditors
In an interview with The Bangkok Post, Tassapon Bijleveld, CEO of Asia Aviation (the majority shareholder of Thai AirAsia X), revealed that negotiations with creditors are ongoing, with completion expected by mid-April. The airline, a 51/49 joint venture between Asia Aviation and the AirAsia Group, filed for bankruptcy protection in May 2022 to better manage debts incurred during the pandemic.
Thai AirAsia X suspended operations in early 2020 and again in 2021, leaving many passengers without refunds for their tickets. Some have been waiting for as long as three years. The CEO assured that 50% of refunds have already been paid, with the remainder set to be processed within the next four to five months. The airline resumed flights around the same time it filed for bankruptcy protection and currently serves eight destinations in five countries.
Before the pandemic, Thai AirAsia X operated 12 widebody aircraft. This number has now been reduced to six A330-300s, including one out-of-service aircraft. Two additional A330-900 neos are in storage at Bangkok Don Mueang Airport and will be ferried back to their lessors. Tassapon revealed that Thai AirAsia X’s current flight capacity is approximately 50% of its pre-pandemic levels, with routes to Tokyo Narita, Osaka Kansai, and Seoul Incheon performing the best. The airline also serves Melbourne Tullamarine, Sapporo Chitose, Shanghai Pudong, and Sydney Kingsford Smith from its Bangkok Suvarnabhumi International Airport hub.
Flight Cancellations and Additional Compensation
Due to one of its six remaining A330-300s being out of service, Thai AirAsia X has experienced a more recent spate of flight cancellations. Tassapon assured that passengers affected by these cancellations would receive their refunds along with a THB2,000 baht (USD58 dollars) flight voucher as compensation.
The Association of Asia-Pacific Airlines (AAPA) noted that intra-Asia passenger numbers reached 16.9 million in February 2023, marking a 645% increase compared to the same period in 2022. AAPA Director General Subhas Menon said, “Strong travel demand will continue to underpin recovery in passenger traffic, as pre-pandemic flight frequencies and city links are gradually restored in 2023.”
Thai AirAsia X’s rehabilitation plan and ongoing negotiations with creditors signal a potential turning point for the airline as it works to recover from the pandemic’s impact. With a commitment to refunding and compensating passengers and the broader recovery in the Asia-Pacific aviation industry, Thai AirAsia X is poised to make strides in rebuilding its operations and regaining the trust of its customers.
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