Long-haul, low-cost carrier AirAsia X has run out of money and needs to raise up to 500 million ringgit ($120.6m) to restart the airline as it fights to survive the coronavirus pandemic that has left the airline's planes grounded since March, deputy chairman Lim Kian Onn said on Saturday.
The Malaysian airline, the long-haul arm of AirAsia Group, said this month it wanted to restructure 63.5 billion ringgit of debt and slash its share capital by 90 per cent to continue as a going concern.
"We have run out of money," Mr Lim told The Star newspaper. "Obviously, banks will not finance the company without shareholders, both old and new, putting in fresh equity. So, a prerequisite is fresh equity."
He said the airline had actual liabilities of 2bn ringgit, with the larger figure of 63.5bn ringgit including all lease payments for the next eight to 10 years and its large order for Airbus planes and contracted engine maintenance with Rolls-Royce Holdings.
"If we find RM300m in new equity, then the shareholder funds are RM300m at the restart of business and if we are able to borrow RM200m, we feel that we will have a good platform to start all over again."
Mr Lim said AirAsia X also needed to convince its lessors of its business plan, adding an unnamed lessor recently took back one of the airline's planes to convert it to a freighter.
The airline plans to liquidate its small Indonesia-based carrier and has completely written down its 49 per cent stake in Thai AirAsia X in its books, with the Thai carrier not part of the restructuring scheme, Mr Lim added.
Initial negotiations with creditors have been tough as they are understandably upset, Mr Lim said in the interview. They had asked for better terms, including free equity for forgiven debt – something that would be impossible for the airline to fulfill, he said.
Still, Mr Lim said all of them genuinely wanted to find a common ground to take the airline forward. “No one has anything to gain from our demise,” he said.
The airline is planning to resume flights in the first quarter, though the process remains “dynamic”, Mr Lim said. Should the rescue plan get approval, the company will have to renegotiate every single contract and will do its best to look after all stakeholders’ interests, he said.
Rival Malaysia Airlines is also in financial trouble, but Mr Lim said there would be "no good outcome" from seeking to merge two airlines in dire straits.
Last week, the International Air Transport Association renewed its call for governments to extend financial support to airlines to help them overcome the coronavirus-induced crisis. The organisation estimates that airline revenues will halve to $419bn in 2020 due to the crisis.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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John Zubrzycki, Hurst Publishers
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Tips for newlyweds to better manage finances
All couples are unique and have to create a financial blueprint that is most suitable for their relationship, says Vijay Valecha, chief investment officer at Century Financial. He offers his top five tips for couples to better manage their finances.
Discuss your assets and debts: When married, it’s important to understand each other’s personal financial situation. It’s necessary to know upfront what each party brings to the table, as debts and assets affect spending habits and joint loan qualifications. Discussing all aspects of their finances as a couple prevents anyone from being blindsided later.
Decide on the financial/saving goals: Spouses should independently list their top goals and share their lists with one another to shape a joint plan. Writing down clear goals will help them determine how much to save each month, how much to put aside for short-term goals, and how they will reach their long-term financial goals.
Set a budget: A budget can keep the couple be mindful of their income and expenses. With a monthly budget, couples will know exactly how much they can spend in a category each month, how much they have to work with and what spending areas need to be evaluated.
Decide who manages what: When it comes to handling finances, it’s a good idea to decide who manages what. For example, one person might take on the day-to-day bills, while the other tackles long-term investments and retirement plans.
Money date nights: Talking about money should be a healthy, ongoing conversation and couples should not wait for something to go wrong. They should set time aside every month to talk about future financial decisions and see the progress they’ve made together towards accomplishing their goals.
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Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
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Joe Root's Test record
Tests: 53; Innings: 98; Not outs: 11; Runs: 4,594; Best score: 254; Average: 52.80; 100s: 11; 50s: 27
