Thursday, November 19, 2020

Ouch! AirAsia X Loses Again!

 Long-haul company AirAsia X Bhd today posted a larger annual rate loss due to a revenue shortfall driven by the Covid-19 outbreak, which reduces travel. Therefore, the company will continue to carry out its initial restructuring efforts on its ability to raise new funds and survive.

Prior to this, the company had also reported a net loss of RM308.5 million for the rate ended September, an increase from the RM229.9 million net loss recorded in the previous year.

According to a report, the leading airline's revenue has fallen by 94% to RM59.9 million.

In October, they were charged with carrying out a large-scale restructuring, which aimed to resize RM63 billion of non-collateralized debt to a principal amount of RM200 million and pre-empt the rest, to avoid dissolution.

When this month, the airline company has reviewed the original design to categorize the debtors in an effort to overcome the problems caused by the debtors.

In fact, implementation of this scheme is ongoing and its success is critical to the company's ability to raise new funds as debt or equity.

Additionally, AirAsia X is in talks with a financial institution to get a royal guarantee loan of up to RM500 million.