: 09-09-20 10:26

AirAsia seeks USD 602 million cash injection

AirAsia Group announced that it was seeking to raise USD 602 million by the end of 2020, after suffering a painful loss as COVID-19 bite.

Aerial view of Air Asia cruising above Fluffy White Clouds

A multi-national airline group is expecting to survive the present economic downturn by raising up to USD 362 million from the bank loans and  the rest USD 240 million from the Group investors.

In August 2020, the financial AirAsias report showed that the company lost almost USD 241 million - it is the companys largest quarterly loss on record. While AirAsia has resumed its domestic operations in April 2020, the Groups long-haul unit AirAsia X still does not perform any operations.


The financial injections could have a significant impact to keep the company on the market, in the interview with Reuters noticed Tony Fernandes, the CEO of the AirAsia Group. Fernandes said that investors were considering to include private equity players as well as both local and foreign strategic partners into financial rescue.

READ MORE: Lessor loses patience: AirAsia X sued for USD 23 millionAirline leasing company BOC Aviation has filed a claim at the London court against AirAsia X and its wholly-owned subsidiary AXX Leasing Two for USD 23 million, claiming outstanding liabilities. The filed lawsuit for alleged breach of a contract among the companies might highly affect the airlines financial stability as travel restrictions have already hit AirAsia X hard.  

Its progressing quite well and I see no reason why that wont be met. But I cant add too much more to that, Fernandes said.

However, it is not only the impact of the current pandemic that tortures the Groups financial stability. In August 2020, AirAsiaX and its subsidiary received a letter of a material litigation claim filed in the High Court of Justice in the Business and Property Courts of England and Wales. Airline leasing company BOC Aviation sued AirAsia X and its wholly-owned subsidiary AXX Leasing Two for USD 23 million, claiming outstanding amounts due under lease agreements.  

: AeroTime

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