Thai AirAsia X plans capital increase to exit rehabilitation

Low-cost airline operator Thai AirAsia X aims to increase its registered capital by 1b baht (US$0.030b) as part of its plan to exit rehabilitation later this year. The airline entered a court-approved rehabilitation process on August 31, 2023, which has now been ongoing for one year and seven months. Tassapon Bijleveld, executive chairman of Asia Aviation and CEO of Thai AirAsia X, confirmed that the airline has already repaid 60 - 70% of its 4.27b baht (US$0.13b) debt without default. To complete the rehabilitation process by the end of this year, the airline plans to raise its registered capital by 1b (US$0.15b) baht. However, Tassapon noted that the company would monitor the situation during the first and second quarters before proceeding with the capital increase. He expressed confidence in attracting new investors, pointing out that the company had previously offered shares worth a total of 5b baht to new partners following the Covid-19 pandemic. Tassapon added that Thai AirAsia X has been profitable since last year, posting a net profit of 400m (US$12m) baht. However, he acknowledged that the profit margin remains relatively low, due in part to the high maintenance costs associated with its fleet of Airbus A330 aircraft, which must be serviced in Indonesia and the Philippines.<br/>