Malaysia’s AirAsia X says lessor files $23 million claim for outstanding dues

KUALA LUMPUR (Reuters) – Malaysian long haul carrier AirAsia X (AIRX.KL) on Friday said lessor BOC Aviation (2588.HK) has filed a claim against the company for $23 million in outstanding dues.

The budget airline said BOC Aviation has alleged a breach of AirAsia X’s lease agreement and its obligations under four guarantees dated December 2018.

The AirAsia X board is reviewing the documents and will seek legal advice, the airline said.

AirAsia X has taken a hit to its finances due to travel restrictions triggered by the coronavirus pandemic.

Last week, it said it needs creditors’ support to ride out the crisis and was seeking payment deferrals and concessions from suppliers, lessors and lenders.

The airline operated 16 scheduled flights in April-June quarter carrying 2,291 passengers, compared with 4,824 flights and around 1.45 million passengers a year ago.

Its parent company AirAsia Group (AIRA.KL) is also looking to raise capital.

AirAsia X said it has leased four planes from BOC Aviation.

The lessor has filed the claim at the High Court of Justice in the business and property courts of England and Wales, it said.

Reporting and photo: Reuters

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