AirAsia X stops operating in Indonesia, what’s wrong?

JAKARTA, KOMPAS.com – Airlines AirAsia X plans to close its operations in Indonesia. This step was taken in order to survive the Covid-19 pandemic.

As is known, the airline which is part of the AirAsia Group has not been able to operate since last March.

Deputy Chairman of Air Asia X Lim Kian Onn said the operational closure is also part of the restructuring that the airline is currently doing, in order to remove debt 63.5 billion ringgit or the equivalent of Rp 222 trillion (assuming an exchange rate of Rp 3,500 per ringgit).

Also read: AirAsia Reportedly Will Receive Injection of Funds from the Malaysian Government

Lim admitted that it is difficult to get approval from investors and creditors.

The reason is, they feel disappointed and ask for better terms, including free equity for debt written off.

However, Lim added, it was impossible for airlines to fulfill this.

Even so, Lim ensured that his party would find a middle way to advance the airline business.

Also read: AirAsia Starts Operating Flights to Several Routes

“Nobody can benefit from closing our business,” he was quoted as saying The New Straits Times, Monday (19/10/2020).

For information, AirAsia X is an airline that is focused on serving flight long distance, with a flight time of more than 4 hours.

CEO AirAsia Group, Tony Fernandes even admits, long-haul flights will take longer to recover than short distances.

“Business travel, intercontinental flights, first class travel, it will take a long time to get up, “said Fernandes.

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