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Asia airlines seen staving off pandemic ruin for now as financial troubles head West
- More carriers in Africa and Latin America now face financial difficulties than their Asian counterparts, according to a Bloomberg News analysis
- But troubles remain. AirAsia’s long-haul budget arm is restructuring billions in debt and the future of state-run Malaysia Airlines is still uncertain
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Carriers in jurisdictions where there is scant support from up high are most likely to go bust, according to an analysis by Bloomberg News using the Z-score method developed by Edward Altman in the 1960s to predict bankruptcies.
Versus the same analysis done in March, when the virus began rapidly cutting off international travel, the results show a clear swing to the West. At least four of the 10 airlines named back then have restructured in some fashion, and all but one were in Asia.
The list now is populated more by carriers in Africa and Latin America, where some have already folded or entered administration.
AirAsia Group declined to comment. Thai Airways International said a reorganisation plan will be proposed to the Central Bankruptcy Court by the end of the year, and noted the company plans to fulfil its commitments to all creditors.
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