AirAsia in Financial Difficulty - Submit Your Proof of Debt

AirAsia has sent out emails addressed to its creditors (those with flight credits for cancelled flights).

From support:
Proof of Debt must be submitted by 7/4/21!
to our physical address at RedQ, Jalan Pekeliling 5, Lapangan Terbang Antarabangsa Kuala Lumpur (klia2), 64000 KLIA, Selangor Darul Ehsan, Malaysia.

Please provide copies of your booking confirmation, tax invoices, and/or other documents which could substantiate the total amount claimed.

If you missed the submission by the Relevant Date … AAX Group reserves the right to rely on its records to ascertain the amount of debt owed to you. You will still be included in the POD exercise.


Email: 26 Mar 2021, 11:55 pm

Dear valued creditor.

Please be advised that we have published an FAQ outlining all the common questions and answers relating to the AirAsia X restructuring and Proof of Debt process.

You can refer here
https://support.airasia.com/s/article/AirAsia-X?language=en_...

If you still have any questions please contact us at [email protected].

AirAsia X

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Comments

  • +1 vote

    I think my credit for return flights + meals is gone. Paid for in Feb 2020.
    Aircraft leasing companies are being offered almost nothing.
    Those with cancelled bookings are at the end of a long queue of those owed money.

    Sending in proof by mail is far too difficult with so little time to reach KL by 7/4!

    Courier Letter (2-3d) would make it in time.
    Express Letter (6-12d) might.
    https://auspost.com.au/service-updates/international-deliver...

    •  

      Do you know anyone in KL who can print out the docs and post them for you? There might even be some sort of online service that can do this.

      •  

        Documents need to be certified - original & copy need to be seen by JP. You can't then submit a copy of a certified document.
        So your suggestion won't work.

        As stated, they will go by their records, which should show what we paid.

        Its a complex process more for major creditors. They are checking their books to see how much is owed. Then negotiate a settlement through the Malaysian court

  • +3 votes

    I was able to do a credit card chargeback. Have you tried this?

    • +2 votes

      Accurate, correct and helpful homily.

      • -2 votes

        Lol. Of course you realise you replied to the wrong comment. Not very "Accurate, correct and helpful"😉

        Why are you even on a bargain site with that belief against reducing costs??

        Even airlines with high prices were facing financial difficulties - if it weren't for massive government assistance.
        As I've demonstrated - your simplistic homily is useless when dealing with complex Covid related issues.

        And an homily is a tedious moralising lecture! Glad you agree.

        •  

          No I replied to the correct thread.

          Lookin4bargain had a nicer homily than mine.

          My original homily was to advise that when you choose a low cost airline you take on additional risks compared to a major airline. Plenty of low cost airlines no longer exist both before and after covid.

          • -1 vote

            @MS Paint: By definition that was not a homily! It was useful advice.

            Many high cost airlines also no longer exist! Including national carriers. It was a bad year last year for airline failures!

            There are many reasons why businesses fail - at the moment Covid is a major factor! And the effects & uncertainties of pandemics are very hard to factor in! Many are being kept going here through massive Government support.

            A fact about when a business fails…
            the more you paid / invested, the more you lose!

            •  

              @the INFIDEL:

              A fact about when a business fails…
              the more you paid / invested, the more you lose!

              Source?

              •  

                @MS Paint: You work it out! It's pretty basic.

                Source - business insolvency cases.

                When a business fails that you have unsecured funds or credit in - any distribution is a (usually small to 0) proportion of that amount. So the more you risk - the more you lose!

                Paying a higher price = you will lose more if the business fails.

                There is always that risk. So people take out insurance - which may not help in a pandemic!
                (I don't. I've never had a need in my extensive budget travels - up to 9 months per year overseas.)

                That's why AirAsia is asking all creditors to state what they are owed. The funds in the business (less costs) can then be apportioned based on those claims. That is the reason I posted this.

                I try to minimise my losses for the greatest benefit, but take the occasional punt.

                So I won't be lodging a formal claim. A small proportion of my small payment is not worth the time, effort & costs.

                I kept my exposure small, with a chance of a holiday if it paid off. I wrote that off nearly a year ago.

                •  

                  @the INFIDEL: I'm surprised the completely missed the point lol

                  When a business fails

                  There is a higher chance of the business failing when it's a low cost carrier.

    •  

      No. It certainly was discussed but there was little feedback that it was successful.
      When did you do it?
      I paid by Credit Card through PayPal, in Feb last year.

      • +1 vote

        Was due to fly in April last year during Easter break. So it must have been in April that I did that. I filed a chargeback as soon as I received the cancellation email. It took me a few months to get a refund though. At first they refused it, but when they finally refunded, the booking is gone from 'My Bookings' and I can't retrieve it.

        • +1 vote

          Thanks for that.
          My flight was cancelled in May.
          Earlier flights were offered refunds.

          As I unfortunately didn't pay directly with my CC, but through PayPal, it made it more complex. PayPal didn't want to know. I didn't try a charge back.

          It was a relatively small amount which I didn't follow up. Glad I didn't pay much! (Twice what I spent today on alcohol! I'll just drink a little less.)

          No big issue for me, but may affect others a lot.

  •  

    So, ignoring all the philisophical debate about homilies eyeroll
    I had two flights in June 2020 that were cancelled and "credit" allocated to my account. Should I bother doing all the paperwork which won't get to KL in time, or just let it ride and see what happens (accepting I'll probably not get a cent back), or try a chargeback?

    •  

      The likelihood of getting anything meaningful back through the receivership process is low (but perhaps still worth a shot), so I'd try the chargeback path in the first instance. Did you explicitly accept the credit? If you did, the chances of your chargeback claim being successful goes down. And since your flights were ~9 months ago there's a risk that your bank won't accept a chargeback claim at all.

      When submitting a chargeback, keep it nice and simple:
      - put it against the most appropriate chargeback category (probably goods/services not received, and Airline is in receivership so not in a position to provide replacement goods/services)
      - stick to facts; no sob stories
      - only provide the evidence necessary to support your claim; nothing more and nothing less (i.e. booking confirmation to show your original flight booking, email from AirAsia advising of cancellation, any emails you have showing attempts to get a refund from AirAsia)

  •  

    Did you have travel insurance? I was able to make a claim for an overseas airlines be that had gone into administration.

    •  

      Did you use it during covid?

      (I only once used travel insurance when I was 18. My broker pointed out how silly I was. It was not designed for my type of travel. Never bought again.
      It doesn't suit my prolonged budget travel where there is little chance of making a claim. But it may suit others.)

      If the cause of financial problems are covid related - insurance may not cover it.
      A lot of reduced income was related to Government travel restrictions & border closures. That was the reason for the cancellations & credit offered. Again may not be covered.

      Only way to know… Check with your travel insurer - they should spell this out on their site.

  • +2 votes

    It was during covid however I worded the claim being the airline was unable to provide service because they'd gone into administration - not because I couldn't travel. Didn't mention covid but obviously insurance knew that it was happening and still paid out.

    Can't imagine going abroad without travel insurance for medical. You end up in hospital without coverage and you are in for huge bills

    •  

      That's great. Yes - it's often in what you say or don't say!

      Over 15 years, I've been through major earthquakes that killed so many thousands (Japan & China), & a pandemic (Japan & S Korea), seen too many corpses, detained at gun point by military, & a lot more. Volunteered in tiny villages. But never been to hospital.

      Never needed assistance that could be covered by insurance. Just adapted & was flexible in my travel plans.
      That's not normal travel, so insurance isn't designed for it.

  • +1 vote

    does this mean airasia is closing down ?

    • +1 vote

      "Restructuring".
      Getting rid of their debt at lowest price they can negotiate.
      Then… stay tuned.


      Thank you for your patience as we continue to progress with the regulatory process to restructure our business affairs after submitting an application for a debt restructuring plan to the High Court of Kuala Lumpur, Malaysia. We are pleased to formally inform you that the restructuring process is progressing as planned, and we are now inviting all scheme creditors, including passengers, to participate in the proof of debt (“POD”) exercise.

  •  

    Have anyone here success on VISA chargeback? For airasia and malaysia airlines ticket.

  • +1 vote

    AirAsia X has received approval to restructure the company from shareholders.

    Meeting of creditors are due in late July or August.

    AAX wants to wipe out 99.7% of unsecured debts including credit accounts.

  • +1 vote

    Just got this email….

    Dear Guest,

    We are pleased to confirm that the validity of your Credit Account is now automatically extended to three (3) years (36 months) from the date of issuance.

    You can now log in to your BIG Member account on airasia.com or the airasia Super App, select “My Account” and choose “Credit Account” to see any unused balance.

    Remember, this doesn’t mean that you have to fly within three years’ time.

    The Credit Account allows you to book any AirAsia-operated flight on airasia.com or the airasia Super App and flights are typically available for booking 12 months in advance.

    As a customer driven airline, we’ve listened to feedback we’ve received and have extended your credit account to give you more opportunity to fly again in future. We hope that this change to our policy providing more flexibility and choice, will assist you to make your preferred alternate travel arrangements in the future.

    Aor more information on Credit Account or for more assistance, kindly visit the FAQ Page on our support site.

    Finally thank you for choosing a credit account and supporting AirAsia. Stay safe and we can’t wait to see you back flying with us again soon.

    Adam Geneave
    Chief Customer Happiness Officer AirAsia

    •  

      Just got that email too. Was hoping I could use the credit for booking a local hotel since we aren't going to be flying anywhere for years, but looks like it's flight credit only?