In light of the recent economic crisis dealt by the ongoing Covid-19 pandemic, Malaysia’s homegrown airline company — AirAsia Group Bhd — is mulling the option to return some planes to lessors, as well as shrinking its fleet across the board.
At this point in time, the budget airline is also aiming to return as many aeroplanes from their fleet as they can.
AirAsia To Return Planes To Lessors
More particularly, AirAsia is looking to be flying only 180 planes by the end of next year — a stark decline to the 245 aeroplanes that the group has in their arsenal currently. Along with that, the group will also cease to buy any new aircraft for the time being.
This move came as the company is continuing to cope with the negative impact of the coronavirus, which has massively affected most of AirAsia’s operations — grounding most of its planes and having its operations shut down in Japan.
The move also comes shortly after AirAsia X Bhd (the long-haul arm of the group) proposed restructuring RM 63.5 billion in debt and reducing its share capital by 90%
It was previously reported that AirAsia Group was seeking to reconstitute its debt of RM 63.5 billion into a principal amount of RM 200 million and for the balance to be waived.