AirAsia X insists on categorising passengers as creditors after a note from Mavcom unequivocally urging the airline to reassess its proposal to treat air travel consumers as creditors.
In a media release today, AAX says it is clarifying various media reports on passenger classification and their entitlements as classified under the Scheme of Arrangement (Scheme) that was supported by 99% of all creditors.
“In a financial statement, besides being a shareholder, there are only two categories.
A party is either a debtor if they are owing money to the company or a creditor if the company owes them money. It is clear that the company owes the passengers who have outstanding amounts owed to them, and hence the classification as creditors,” it insists.
On Nov 12, MAVCOM said it takes the view that air travel consumers ought not to be classified as “creditors” as the air travel consumers did not, inter alia, sell any products, provide services or make loans to AAX but instead have paid monies for the purchase of tickets in advance of their flights.”Accordingly, MAVCOM reiterates its position that AAX should reimburse air travel consumers for the tickets purchased.”
Nevertheless, AirAsia X says all affected passengers by its restructuring are assured of the firm’s intention to, “put in place travelling privileges in the form of travel credits,” which can be utilised for future purchases of flight tickets once international borders reopen on top of the 0.5% they will receive and other cash-based entitlements based on annual revenue performance over three years as explained in the Explanatory Statement issued to all creditors recently.
Please note that these entitlements and the travel credits can only take place if AAX is successfully restructured pursuant to the terms of the Scheme.
It also issued a stern warning that a liquidation of the company will mean not a single passenger will get anything in return.
“If the terms of the Scheme are not complied with and the Scheme fails, AAX will go into liquidation and the passengers will not receive anything in return. It is not the intention of AAX to place the passengers in this situation.
“AirAsia X’s policies are in line with many operators in the travel industry worldwide and are fully compliant with all regulatory requirements in each of the regions we operate in,” it says.
