Malaysia’s AirAsia X to Cease Indonesia Operations to Survive Covid-19 Crisis

JAKARTA, KOMPAS.com – Malaysian long haul carrier AirAsia X plans to cease Indonesia operations to survive the Covid-19 pandemic that has grounded its fleet since March.

The company’s deputy chairman, Lim Kian Onn, said that the step was taken as part of the restructuring plan to wipe out nearly 63.5 billion Ringgits ($15.3 billion) in debt.

Lim said that it was difficult to get approval from investors as they were disappointed. They had asked for better terms including free equity for forgiven debt. However, he added, it would be impossible for the company to fulfill.

Also read: Garuda Indonesias Debt Balloons to $2.2B on Coronavirus Pandemic Woes

Even so, Lim assured that he would find a solution to develop the airline business.

“No one has anything to gain from our demise,” The New Straits Times quoted Lim as saying on Monday, October 19.

AirAsia Group CEO Tony Fernandes also said that long-haul flights will take longer to recover than the short-haul flights or domestic routes. “Business travel, intercontinental flights, first-class travel will take a long time to recover.” 

(Writer: Rully R. Ramli | Editor: Sakina Rakhma Diah Setiawan)

Source: https://money.kompas.com/read/2020/10/19/140800926/airasia-x-berhenti-beroperasi-di-indonesia-ada-apa.