AirAsia X offers immediate redemption to customers with outstanding travel credits

KUALA LUMPUR – AirAsia X (AAX) has offered for all its affected customers to book its existing services using their outstanding travel credit following the resumption of air travel.

The medium and long-haul budget airline said in a press release that it is reinforcing its commitment “to prioritise those with outstanding travel credit first, reaffirming that all affected guests can now use their credit account to book existing services immediately.”

“Within the next three months, everyone with unused credit with the airline will also automatically receive a travel voucher for use for booking travel up to five years in advance via their registered AirAsia rewards account,” the statement said.

AAX recently launched its first post-pandemic Kuala Lumpur-Sydney services, and last week launched flights to and from New Delhi and Seoul, which are now available for booking using a credit account, or by reinstating any outstanding travel credit for travel before June 30 this year. 

AAX also said those affected by the restructuring process will receive “a one-off payment of 0.5% of their unused travel credit on the first anniversary of the completion of the debt restructuring on March 2023, as well as a portion of AAX’s profits in the coming years”.

The budget airline posted a statement in March 2022 that it had completed its debt restructuring exercise. The EdgeMarkets reported that under the airline’s restructuring proposal, it would pay 0.5% of the debt owed and end its existing contracts. 

The restructuring was approved by creditors and the high court in 2021.

The restructuring was proposed to avoid liquidation after the airline posted a record quarterly loss in September 2021, and it is one of many carriers in the Asia Pacific region to have entered a court-overseen debt restructuring process to survive the pandemic.

AAX chief executive officer Benyamin Ismail said the airline always prioritises travel credits for its affected guests who have endured for two years.

“The past two years have been extremely challenging with borders around the world closed. Our guests remain our top priority and we look forward to welcoming them back on board with our great value fares and industry-leading inflight service as the world continues to reopen,” he said.

AAX said as per the “explanatory statement” distributed to all scheme creditors (including affected guests) last year, the issuance of credits to guests affected by the debt restructuring is at the discretion of AAX management, and is subject to terms and conditions. – Bernama, April 27, 2022