25th November 2021 – (Kuala Lumpur) Financially troubled budget airline AirAsia X Bhd (AAX) in Malaysia explained today why refunds could not be given to passengers as they are also listed as “creditors” in its debt restructuring scheme.
AAX CEO Benyamin Ismail said today that the company cannot afford refunds as it does not have enough cash flow, but will be providing flight credits that can be redeemed when international flights resume. According to a report in Malay Mail, Benyamin also explained AAX’s debt restructuring scheme that was reported on 18th October and approved on 12th November, where it had among other things proposed paying off 0.5 per cent of over US$8 billion owed to creditors. “One of them (creditors) is the passengers. We cannot treat anybody differently. If we are to exclude the passengers, the creditors — who are other companies — will complain and ask why we treat passengers differently.
In response, Malaysian netizens call for boycott of the cash-strapped airline as they find the reasons unacceptable. They said that the airline should close down and they are prepared to forego their claims.