KUALA LUMPUR, Nov 10 — The Malaysian Association of Tour and Travel Agents (Matta) has called for a fairer compensation scheme compared with the 0.5 per cent proposed debt settlement by AirAsia X Bhd (AAX).

Under the proposed scheme which is now under the supervision of the High Court, Matta said travel agents, charter agents, and passengers will receive RM3.0 million out of the RM599.8 million outstanding accrued liabilities.

In a statement, the association said the proposed debt restructuring requires the approval of at least 75 per cent of the total debt value that votes in each class of creditors.

Failure to get creditors’ approval for its business restructuring will likely see the carrier going into liquidation.

"Under its debt restructuring plan, AAX is aiming to reconstitute RM63.5 billion of its debt into an acknowledgment of indebtedness for a principal amount of up to RM200 million by shaving off 99.9 per cent of its issued share capital as well as a proposed share consolidation of every 10 existing shares in the company into one share.

"Passengers and travel agents should not be penalised as in the first place these deposits should be held in trust by the airline. As such, we urge a better compromise which includes a full debt settlement rate or converting all outstanding liabilities into future credit points,” said Matta president Datuk Tan Kok Liang. 

The Court Convened Meeting for the Class A, B, and C creditors to participate, speak and vote is tentatively scheduled on Nov 12, 2021.

Matta had on April 14, 2020 also called on the Malaysian Aviation Commission (Mavcom) to provide a mechanism for the protection of consumers including travel agents through adequate supervision and governance.

"If Mavcom is unable to protect air passengers' interests, who will? We need to restore customer confidence post-Covid travel.

"It is also for the Consumer Tribunal of Malaysia to note and be aware of the situation and the circumstances that the travel agents are facing due to this situation.

"While the travel agent is not the principal, in this case, it is AAX, but we have always been at the receiving end,” he said. — Bernama