Forbearance can only last so long. As accommodating as leasing companies have been to their clients throughout the pandemic crisis, many lessors are now taking action to get their planes back from clients who can’t pay. AirAsia X – one of the hardest hit airlines – has lost two court actions brought by BOC Aviation and AerCap. The UK High Court ruled in favour of International Lease Finance Corporation (now AerCap) as a trustee of two aircraft (MSN 741 and MSN 786) ordering AirAsia X two subsidiary companies that hold the aircraft – AAX Mauritius and AAX Leasing Four – to pay the sum of £6,581,868.05 (inclusive of costs and interests to ILFC.
A similar judgement was made against another AirAsia X subsidiary, AAX Leasing Two, in favour of BOC Aviation’s claim. AirAsiaX was ordered to pay BOC Aviation a sum of US$23,376,779.02, which includes interest and charges, as well as a sum of £75,000 costs.
The Board of AAX states that it is currently reviewing the documentation received in respect of the two judgements, and that it will be seeking legal advice in view of the proposed debt restructuring of the company.
Meanwhile, on November 17, AirAsia Japan filed for bankruptcy due to what it describes as a demand slump in travel induced by lockdown restrictions related to the coronavirus pandemic.
For the quarter ending 30 September, AirAsia X reported a pre-tax loss of $308.4million compared to a loss of $157.1 million in the year-ago period. For the year to Sept 30, losses at AirAsiaX rose to $1.162bn from $367million in the year ago period.