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AirAsia X restructure in the works

by on October 12, 2020
 

With many global airlines in a similar position, an AirAsia X restructure now underway intends to get the airline ready to fly again. The airline is a member of the AirAsia Group and like its counterparts in Thailand and Indonesia, serves an exclusively international market. With even Singapore Airlines announcing a 95% drop in revenue due to the Covid-19 pandemic, the restructure comes as little surprise.

AirAsia X restructure

AirAsia X CEO Benyamin Ismail remains realistic but upbeat about the future direction for the airline.

….. AirAsia X and other airlines the world over are struggling to survive amidst the global crisis of COVID-19 pandemic. We remain committed to our guests, Allstars, business partners and shareholders to ensure we build a viable and sustainable airline for the long-haul, and for the survival of this airline, the proposed restructuring plan is our only option. Benyamin Ismail

He acknowledged the challenges the airline has faced, with the grounding of all scheduled flights, salary cuts and retrenchment for the first time in the company’s history. Benyamin also warned of similar exercises during the restructuring process, to ensure a successful restructuring and keep as many jobs as possible.

He identified a number of positive factors, going into the AirAsia X restructure.

AirAsia X has:

  • a low cost base
  • in the right part of the market (low cost segment)
  • many of the key markets are in green zones which are likely to reopen first

With a robust recovery strategy in place and continued support from stakeholders, he seed the airline coming out stronger.

So what’s here for travellers?

…. Under the Proposed Scheme, AirAsia Unlimited Pass holders and guests with valid flight bookings will receive travel credits with extended validity for future travel or purchase of seat inventory. Benyamin Ismail

We sought a clarification from AirAsia X on this statement.

Hold on to your AirAsia Unlimited Pass (airline code D7). It will be extended upon the lifting of border restrictions and the resumption of services by AirAsia X. AirAsia X will make the announcement of the extension of validity for the AirAsia Unlimited Pass when these two conditions are met.

The Credit Account is available for cancelled flights by any AirAsia and AirAsia X flights.

The CEO also added that

….. We assure you that we will resume operations as soon as possible once the border restrictions are lifted. Your steadfast support is greatly appreciated.

We understand that AirAsia X is continuously reviewing its network resumption timeline and has an ongoing dialogue with tourism and airport authorities. They are also working with governments and other industry stakeholders to pave the way for the opening up travel bubbles in green zone countries.

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