Tag Archives: AirAsia X

AirAsia X shareholders approve corporate restructuring plan, resumes operations this month

2018 "Lotte World" special livery

AirAsia X Berhad (AAX) has received approval from its shareholders for the proposed corporate restructuring to progress as planned, following the voting process at the AAX Extraordinary General Meeting (EGM) today.

The approval marks a major milestone in the corporate restructuring process. All resolutions were passed with at least a 99.8 percent margin.

These approvals have been obtained simultaneously with final negotiations being held with creditors.

The Company and its restructuring advisers, New York based Seabury Capital have been in active and productive discussions with lessors and other creditors after the approval granted by the court to convene the Court Convened Meeting (CCM). This is currently scheduled for late July or August.

AAX is committed to resuming commercial operations as soon as possible on a successful completion of the restructuring plan and the opening of international borders.

Additionally AirAsia X confirmed a number of services will be operating in June for repatriation purposes between Kuala Lumpur, Malaysia and Sydney, Australia.

While there are currently two return flights on sale in June, there will be more flights available and on sale soon, between Kuala Lumpur and Sydney.

Kuala Lumpur to Sydney
06 June
13 June

Sydney to Kuala Lumpur
07 June
14 June

Top Copyright Photo: AirAsia (Thai AirAsia X) Airbus A330-343 HS-XTD (msn 741) (Lotte World) FUK (Michael B. Ing). Image: 948573.

AirAsia liquidates AirAsia X Indonesia

AirAsia has decided to liquidate its Indonesia branch of AirAsia X in order to survive.

More: https://loyaltylobby.com/2020/10/18/airasia-x-indonesia-liquidates/

Indonesia AirAsia Extra, operating as Indonesia AirAsia X, was a joint venture of AirAsia X (Malaysia) and AirAsia (Indonesia). The airline previously ceased all operations on January 14, 2019.

In addition, AirAsia has also written down the value of AirAsia X Thailand to zero.

AirAsia X Thailand is a Thai long-haul low-fare airline headquartered and based at Don Mueang International Airport in Bangkok. It is a joint venture of AirAsia X (Malaysia) and Thai AirAsia.

AirAsia X (Malaysia) continues but is grounded and is restructuring.

Previously on October 6 AirAsia X (Malaysia) made this announcement:

AirAsia X Berhad (AirAsia X) announced a restructuring plan geared at facilitating an injection of fresh equity which will allow the airline to fly again. AirAsia X also appoints Dato’ Lim Kian Onn as the Deputy Chairman to lead the airline restructuring. He is a Chartered Accountant and was an investment banker. He has been a Board member of AirAsia X since 2012.

AirAsia X is facing severe liquidity constraints. Travel and border restrictions have grounded all scheduled flights and there is no imminent return to normalcy.

An imminent default of contractual commitments will precipitate a potential liquidation of the airline.

A major debt restructuring and a renegotiation of its financial obligations are pre-requisites for any raising of fresh equity which will be required to restart the airline.

For 13 years AirAsia X, as a market leader in medium-haul low-cost flying, has delivered affordable flights to many destinations and created jobs for the airline, related travel and tourism industries as well as contributing to Malaysia’s GDP growth.

The Board and management have assessed various options and propose a restructuring plan which if approved, will secure the airline’s continued ability to fly again. The plan includes:

A. Debt Restructuring Scheme

proposed debt settlement and waiver of debts involving unsecured creditors, aimed at enabling the Group to address its debt obligations in an orderly manner and to arrive at a debt structure that is sustainable from future operating cash flows;

B. Revision of the Group’s Business Plan

route network rationalisation, aircraft fleet right-sizing, cost base overhaul and workforce optimisation, all aimed at ensuring a leaner and more sustainable business going forward;

C. Engagement with Business Partners

key success factors to the proposed restructuring plan include the support from business partners to continue the long-term relationship pre- and post-restructuring.  AirAsia X continues to engage all key business partners and hopes to enter into contracts, agreements and/or arrangements that are reflective and supportive of the airline’s revised business plan upon successful completion of the restructuring which is critical to the future viability of the business;

D. Airline customer and Travel Agents

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.

The proposed restructuring plan and establishment of new contracts, agreements and/or arrangements based on terms to be agreed upon which are sustainable based on the Group’s revised business plan is aimed to right-size the Group’s level of operations and financial obligations, which is crucial to the Group’s continued existence in the aviation landscape. These exercises are pre-requisite for the raising of any fresh capital, comprising both equity and debt needed to implement the Group’s revised business plan.

In the last two months the Company has had extensive discussions with all major creditors. Whilst there are varying degrees of support for the restructuring scheme as has been proposed, all of them have expressed strong support for a continuation of the airline business.

AirAsia X CEO Benyamin Ismail said, “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.

“It has been extremely difficult for the airline during this period as we had to ground all scheduled flights, implement salary cuts and retrenchment for the first time in the company’s history as a consequence of the pandemic. Similar exercises are likely to continue during the restructuring process, but our focus is to ensure a successful restructuring to keep as many jobs as possible.

“We have a low cost base, we are in the right part of the market and many of our key markets are in green zones which are likely to reopen first. We have a robust recovery strategy in place, and with the continued support from our stakeholders, we will overcome all challenges and come out stronger.”

Benyamin Ismail also added, “In order to safeguard Malaysia’s vested interest through the aviation industry, regional air connectivity is essential for trade, businesses and economic growth, especially to our core markets of China, Japan, Korea and Australia where we have established a strong foothold. The closure of these markets can impact the stimulus spending, GDP contribution and employment within the supply chain of the aviation industry. As other airlines struggle in the current market condition, AirAsia X strives to emerge stronger once the market recovers.  Our immediate focus is to obtain all necessary approvals and execute the proposed restructuring plan over the next few months.

“Under the Proposed Scheme, AirAsia X Unlimited Pass holders and guests with valid flight bookings will receive travel credits with extended validity for future travel or purchase of seat inventory. We assure you that we will resume operations as soon as possible once the border restrictions are lifted. Your steadfast support is greatly appreciated.”

AirAsia X continuously reviews its network resumption timeline and has an ongoing dialogue with tourism and airport authorities, governments and other industry stakeholders to pave the way for the prospect of travel bubbles in green zone countries.

Despite the unprecedented setback brought by COVID-19, this also provides an opportunity for AirAsia X to transform and reinvent the product and business strategy to emerge in a stronger and more sustainable financial position, capable of attracting new equity and debt funding critical to the long-term viability and continuity of AirAsia X.

AirAsia X (Indonesia) (AirAsia.com) Airbus A330-343 PK-XRA (msn 716) DPS (Pascal Simon). Image: 939293.

Above Copyright Photo: AirAsia X (Indonesia) (AirAsia.com) Airbus A330-343 PK-XRA (msn 716) DPS (Pascal Simon). Image: 939293.

 

Airbus reveals first A330neo for AirAsia

Airbus and AirAsia have unveiled the first A330-900 (A330neo) for the AirAsia Group at the Paris Air Show. The aircraft will be delivered via lessor Avolon in the coming weeks for operation by AirAsia’s long-haul affiliate, AirAsia X Thailand. The event was attended by Tan Sri Rafidah Aziz, AirAsia X Malaysia Chairman, Nadda Buranasiri, AirAsia X Group CEO, Christian Scherer, Airbus Chief Commercial Officer, Domhnal Slattery, Avolon Chief Executive Officer and Chris Cholerton, Rolls-Royce President Civil Aerospace.

With capability to reach Europe nonstop from South-East Asia, the A330neo’s increased range and enhanced economics will bring a step-change in fuel efficiency for AirAsia’s long haul operations.

During the event, media and other guests visited the new cabin for the first time. The Thai AirAsia X A330-900 features 377 seats in a two-class configuration, comprising 12 business class and 365 economy class seats.

AirAsia X currently operates 36 A330-300 aircraft. The airline is the largest customer for the A330neo with 66 on order. In addition, the airline will acquire two aircraft on lease from Avolon this year.

The A330-900 is the larger of the two A330neo variants. The A330neo Family is the new generation A330, comprising two versions: the A330-800 and A330-900 sharing 99 percent commonality. It builds on the proven economics, versatility and reliability of the A330 Family, while reducing fuel consumption by about 25 percent per seat versus previous generation competitors and increasing range by up to 1,500 nm compared to the majority of A330s in operation.

Photos: Airbus.

AirAsia X is coming to Avalon Airport on December 5

AirAsia X (AirAsia.com) Airbus A330-343 9M-XXI (msn 1411) DPS (Pascal Simon). Image: 943869.

AirAsia X On December 5, 2018 will launch new twice-daily Australian services to Avalon Airport (AVV) from Kuala Lumpur. The first departure from Avalon Airport will be on December 5.

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AirAsia X will become the largest airline at Avalon Airport.

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Previously on February 4, 2018 AirAsia and Avalon Airport announced that AirAsia will move its Melbourne operations to Avalon Airport from Melbourne Tullamarine Airport.

AirAsia X Malaysia will operate twice daily flights as the first international carrier at the airport, making long-haul flying affordable for Melbourne and the Victorian region, and improving access to more than 130 destinations in Asia and beyond.

Flight schedule between Kuala Lumpur, Malaysia (KUL) and Avalon, Melbourne, Australia (AVV) commencing December 5, 2018:

 

 Note: All times listed are local unless otherwise stated, subject to government and regulatory approval. Note: Fares to/from Avalon Airport are on sale subject to regulatory approvals at this time.

Note: All times listed are local unless otherwise stated, subject to government and regulatory approval.
Note: Fares to/from Avalon Airport are on sale subject to regulatory approvals at this time.

 

A total of 500,000 international passengers are projected to move through Avalon Airport in the first year of operations.

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The move was announced at an industry event at Avalon Airport (above) with special guests including the Minister for Foreign Affairs, the Hon. Julie Bishop, AirAsia Group CEO and AirAsia X Co-Group CEO Tony Fernandes, Founder of Linfox, Lindsay Fox AC, Executive Chairman Linfox Airports, David Fox, AirAsia X Malaysia CEO Benyamin Ismail, Minister for Industry and Employment, the Hon. Ben Carroll, Avalon Airport CEO Justin Giddings, and local TV personality Catriona Rowntree as master of ceremonies.

AirAsia Group CEO and AirAsia X Co-Group CEO Tony Fernandes said, “This is an exciting milestone for AirAsia X. Since our inaugural flight in 2007, AirAsia X has flown over 30 million guests, including 6.1 million Australians – tourists wanting to experience amazing Australia, students from across the globe and Australians who wish to see the world. We are proud to renew our commitment to making air travel affordable for Australians with this move to Avalon, which will help us maintain our cost edge and allow us to continue offering low fares to Asean, Asia and beyond.”

He added: “Our crusade started with just two planes 16 years ago at a time when flying was only for the privileged few. We have since created jobs and careers, and turned millions of dreams into reality. I must say it hasn’t always been easy for us in Australia. The challenges thrown at us have been constant, but the joy we bring to Australians and Southeast Asians who yearn to travel has strengthened our resolve to make flying cheaper, easier and more enjoyable. We would like to thank Avalon for supporting AirAsia in helping all travellers through low fares.”

AirAsia X Malaysia CEO Benyamin Ismail said, “We are proud to be the first airline to operate international flights at Avalon Airport, connecting Melbourne and the Victorian region with Kuala Lumpur, Asia’s number one LCC hub. Melbourne and Victoria are important markets to us and this new service with 560,000 seats annually will provide a significant boost to business and tourism, including to such attractions as the Great Ocean Road. We wish to thank the relevant authorities for their tremendous support in making our move to Avalon Airport possible.”

Executive Chairman Linfox Airports, David Fox said, “This is a significant announcement and the formation of a new partnership. We anticipate around half a million international passengers will use Avalon Airport in the first year of operations. I am particularly excited about the large volumes of freight capacity that AirAsia X has on each flight. We have received great interest from exporters in the region and this now provides the perfect platform for fresh food access to Asia.”

Avalon Airport CEO, Justin Giddings said, “This is a 10-year agreement structured to accommodate AirAsia X’s significant growth. It is the first such deal in Australia, and provides a unique low-cost opportunity for people and businesses to access over 130 destinations throughout Asia. Avalon Airport is easily accessible from Melbourne, Geelong, Ballarat and surrounds. Low-cost flights combined with an easy airport experience makes for the perfect partnership. We’re extremely pleased to welcome AirAsia to Avalon Airport.”

Top Copyright Photo (all others by AirAsia): AirAsia X (AirAsia.com) Airbus A330-343 9M-XXI (msn 1411) DPS (Pascal Simon). Image: 943869.

AirAsia X aircraft slide show:

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AirAsia X confirms 66 A330neo and orders a further 34, total now 100

AirAsia X has placed an order for 34 additional Airbus A330neo aircraft worth $30 billion. The brings the total to 100 aircraft.

The first copy will be delivered in April 2019.

The new aircraft will replace older aircraft and allow for greater expansion. The new type will also allow the company to fly nonstop to London.

The airline issued this statement:

AirAsia’s long haul affiliate, AirAsia X, has placed an order with Airbus for an additional 34 A330neo widebody aircraft. The order was announced at the Farnborough Air Show in the UK by Datuk Kamarudin Meranun, AirAsia Co-Founder and AirAsia X Group Chief Executive Officer, Tan Sri Rafidah Aziz, Chairman of AirAsia X and Eric Schulz, Airbus Chief Commercial Officer (below).

The latest agreement reaffirms AirAsia X’s position as the largest airline customer for the A330neo, with the total number of aircraft ordered by the airline increasing to 100.

All the A330neo aircraft ordered by AirAsia X are the larger A330-900 model.

Offering range capability enabling nonstop services to Europe, including from Kuala Lumpur to London, the A330neo will allow AirAsia X to expand its value-based long haul model with even lower operating costs, while enabling its passengers to fly further more often with highly competitive fares.

AirAsia X will be the first airline in Asia to operate the A330neo, with deliveries of aircraft on order with Airbus scheduled to start in Q4 2019. The A330neo will be operated by AirAsia X out of its bases in Malaysia, Thailand and Indonesia.

AirAsia Co-Founder and AirAsia X Group Chief Executive Officer Datuk Kamarudin Meranun said: “Long haul low-cost is something we strongly believe in, and this order shows our confidence in the AirAsia X model. We lobbied hard for the A330neo after seeing the success of the A320neo, and working closely with Airbus, we have arrived at an aircraft that we are confident will allow us to expand our low fares offering beyond Asia Pacific to the rest of the world.”

AirAsia Co-Founder and AirAsia X Co-Group Chief Executive Officer Tan Sri Tony Fernandes added: “Our decision not only to reconfirm our existing order for 66 A330neo, but to add 34 more, follows what is probably one of the most thorough aircraft evaluations the industry has ever seen. We have looked at every aspect of the A330neo from technical performance and reliability to passenger comfort and it is clearly the right aircraft for us to expand efficiently our fast-growing long haul network. I would like to personally thank Eric Schulz, who has been put through his paces with AirAsia, as well as Jerome and Alain. We are a tough customer but we get behind a product we know is right.”

Eric Schulz, Airbus Chief Commercial Officer commented: “We are extremely pleased to announce this important agreement with AirAsia X. This is the strongest possible endorsement for the unbeatable operating economics, performance and cost-effectiveness that the A330neo brings to the market in its size category. We look forward to working with AirAsia X on the entry into service of this great aircraft with the carrier as it expands its route network to more destinations around the world.”

The A330neo is the latest version of the twin aisle A330 Family. It incorporates new generation Rolls-Royce Trent 7000 engines, a new optimised wing and increased use of lighter composite materials. Together, these advances bring a significant reduction in fuel consumption of 25 per cent compared with older generation aircraft of similar size.

Passengers can expect the highest levels of comfort when flying on the A330neo, with the aircraft featuring the award-winning Airspace by Airbus cabin. Originally designed for the larger A350 XWB, this features newly designed sidewalls and fixtures, larger overhead storage, advanced cabin mood lighting and the latest in-flight entertainment and connectivity.

The A330 Family is one of the most successful widebody product lines ever, having received over 1,700 orders from 120 customers. More than 1,400 A330s are flying with over 120 operators worldwide. Including today’s announcement, the A330neo has already won some 250 firm orders prior to entry-into-service.

The A330neo is currently nearing completion of its flight test programme with certification expected in the coming weeks followed by entry into commercial service in September.

Photo: AirAsia X.