Aircraft manufacturer Airbus SE said it stands to lose more than $5 billion worth of aircraft orders if AirAsia X Bhd’s (AAX) debt restructuring scheme goes through, court documents showed, joining a dozen creditors that have challenged the Malaysian low-budget carrier’s plan.
Airbus’s challenge comes as AAX defended its scheme from key lessor BOC Aviation Limited’s (BOCA) allegations that it favoured Airbus and lacked a debt-to-equity swap offer for creditors.
In a Dec. 16 affidavit filed at Kuala Lumpur High Court, Asia-Pacific Head of Region Anand Emmanuel Stanley said there was a strong possibility Airbus “will suffer substantial losses and prejudice” from termination of purchase agreements.
“AAX has ordered and Airbus has already built, or substantially built, seven A330neo aircraft which are currently in the inventory,” he said, adding that there are another 71 on order that may impact Airbus’s profitability if cancelled.
AAX revealed in a Dec. 17 affidavit seen by Reuters it owes Airbus 48.71 billion ringgit ($12 billion) including predelivery payments for committed purchase of 118 aircraft.
BOCA has said AAX’s debt calculations should not include future debts, which are primarily owed to Airbus.