Thai AirAsia X (TAAX), a low-cost long-haul flight provider that is part of the AirAsia group, has successfully filed for bankruptcy in a Thai court.
Thai AirAsia X will become the third airline in Thailand to file for bankruptcy amid the Covid-19 pandemic.
The airline is assuring passengers that any flights already booked will be honored, including those flights on international routes. Pre-booked flights to Japan and South Korea, which TAAX will begin operating in June, will also operate as planned.
The airline hopes to survive as a business by following a court-approved rehabilitation plan.
One of TAAX’s largest shareholders, Mr. Tassapon, has said that he hopes this rehabilitation plan will be completed in a year or less. Thai AirAsia and Asia Aviation Plc should not be affected by this rehabilitation plan.
The bankruptcy is a direct result of COVID-19’s significant impact on air travel, which continues to burden the travel industry even as international travel restrictions are loosening, especially with fuel prices on the rise.