AAV Books ฿3.6bn from Sale and Leaseback of 9 Aircraft, Adding Liquidity to Operations!
AAV Books ฿3.6bn from Sale and Leaseback of 9 Aircraft, Adding Liquidity to Operations!
AAV Books ฿3.6bn from Sale and Leaseback of 9 Aircraft, Adding Liquidity to Operations!
30 มี.ค. 2563

Asia Aviation Public Company Limited (AAV) has announced the mitigation plan giving the impact of the coronavirus disease, in view of the covid-19 pandemic that has led to extensive and increasing border restrictions imposed by various countries, and in cooperation with the 2015 Royal Decree of Emergency Situations over the coronavirus pandemic, therefore AAV will temporarily hibernating its fleet across the network.
For international routes, AAV has issued a suspension of all international service operation by Thai AirAsia  from March 22 – April 25, 2020. Also for all domestic routes of Thai AirAsia will be suspended from April 1 – April 30, 2020.
In regard to cost cutting initiatives, both the management and senior employees of AAV have volunteered a salary sacrifice, ranging from 75% at the very top to 10%. This will help ensure that AAV can ride out this prolonged period of extremely low travel demand and at the same time minimize the impact on overall employees.
Given the suspension of flights, variable expenses, which generally make up 70% of total cost, can be reduced, such as flying allowance, fuel expenses, variable maintenance expenses, station costs, utility cost, as well as general administrative expenses through work-from-home schemes for employees. Furthermore, AAV has stopped non-essential employee travel and has put in place a temporary hiring freeze. Additional cost reduction measures are being explored.
While in the matter of cash and liquidity, at the end of 2019, AAV had cash on hand and current investments of 3,982 million baht. Referring to the announcement dated January 10, 2020 regarding the sale and leaseback of 9 aircraft and outright sale of 1 aircraft, and AAV has completed all the transactions on March 12, 2020. Net proceeds received approximately totaled 3,600 million baht, net from the associated debt repayment and associated costs. AAV also has underutilized revolving credit facilities with banks and has the ability to mobilize the liquidity further by way of the credit facility backed by the remaining non-encumbrance owned aircraft and/or other approaches in the future.