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Airbus May Lose More Than USD 5 Billion Due To AirAsia X Restructuring Scheme

As you may have heard, AirAsia’s long-haul division, AirAsia X (AAX) is now going through restructuring after being hit hard by travel restrictions due to COVID-19 outbreak. Hence, customers are not able to seek refunds or apply for credit accounts and flight changes from the airline at the moment.

Aside from disgruntled passengers, AAX is also facing challenges from a long list of creditors who are seeking their stake in the airline’s restructuring process. One such creditor is Airbus who said it may lose more than USD 5 billion (~RM 20.3 billion) if the airline’s restructuring proposal is given the approval.

AirAsia

Under the proposal, all AAX’s Airbus aircraft order will be eliminated. Citing a court document, Reuters reported that Airbus has already completed or “substantially built” seven A330neo for the airline with another 71 are waiting in the line.

Furthermore, another court document stated that AAX owes Airbus around USD 12 billion (~RM 48.71 billion) which is a huge chunk of the airline’s total debts and liabilities that was said to be around USD 15.8 billion (~RM 64.15 billion). This generally explains why the European aircraft maker is quite concerned with the restructuring proposal from AAX.

(Source: Reuters.)

The post Airbus May Lose More Than USD 5 Billion Due To AirAsia X Restructuring Scheme appeared first on Lowyat.NET.

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