AAirlines

Airbus will lose more than 5 billion in orders with AirAsia’s restructuring plan.

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Airbus said it will lose more than $5 billion in aircraft orders if AirAsia X’s debt restructuring plan is carried out, court documents showed. The European aircraft manufacturer thus joins a dozen creditors who have challenged the low-cost airline’s plan in Malaysia.

See also: Airbus re-sells six aircraft unwanted by AirAsia.

Airbus’ challenge is known as AAX defends itself against claims by key lessor BOC Aviation Limited (BOCA), which complained that the restructuring plan favours the pan-European group and lacks a debt-for-equity swap offer to creditors. In an affidavit filed on December 16 in the Kuala Lumpur High Court, the head of the Asia-Pacific region, Anand Emmanuel Stanley, said there was a strong likelihood that Airbus would “suffer substantial loss and damage” from the termination of the purchase agreements, Reuters reported.

See also: Are Chinese commercial aircraft threat to Boeing or Airbus?

“AAX has ordered and Airbus has already built, or has built substantially, seven A330neo aircraft that are currently in inventory,” he said, adding that there are another 71 in order status that could affect Airbus’ profitability if they are cancelled.

AAX revealed in a Dec. 17 affidavit heard by Reuters that it owes Airbus 48.71 billion ringgits ($12 billion), including pre-delivery payments for the committed purchase of 118 aircraft.

BOCA instead says that AAX’s debt calculations should not include future liabilities, which are mainly due to Airbus. Airbus alone accounts for about 75% of the total value of debt needed to approve the restructuring, giving lessors relatively little say.

By Liz Lee

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