Long-haul budget airline AirAsia X Bhd (AAX) has proposed a separate restructuring programme for its aircraft lessors that aims to tackle their concerns, citing a chance to recover rental losses, a document seen by Reuters shows.

The airline, an affiliate of AirAsia Group, has been trying for months to reconstitute RM64.15 billion of debt into RM200 million of debt. More than a dozen creditors, mostly lessors, had intervened in court to challenge a proposal that would have meant a haircut for them of 99.7 percent.

The new proposal for lessors is a key step as the airline looks to win creditors' approval for its restructuring.

The proposal seeks to address lessors' concerns about their forward commercial agreements and the viability of the airline's business after recapitalisation...