AirAsia Group announced that it was seeking to raise $602 million by the end of 2020, after suffering a painful loss as COVID-19 bite.
A multi-national airline group is expecting to survive the present economic downturn by raising up to $362 million from the bank loans and the rest $240 million from the Group investors.
In August 2020, the financial AirAsia’s report showed that the company lost almost $241 million – it is the company’s largest quarterly loss on record. While AirAsia has resumed its domestic operations in April 2020, the Group’s 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.
“It’s progressing quite well and I see no reason why that won’t be met. But I can’t add too much more to that,” Fernandes said.
However, it is not only the impact of the current pandemic that tortures the Group’s 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 $23 million, claiming outstanding amounts due under lease agreements.