Ifah Sakinah
Image credit: Hertz
Hertz will continue to operate in Asia amidst recent news that Hertz Global Holdings has filed for bankruptcy protection. Its car rental ceased as a result of the collapse in air travel due to the COVID-19 pandemic.
While Hertz filed for Chapter 11 protections for certain of its U.S. and Canadian subsidiaries, the decision has no material impact on its operations in Asia.
Business is as usual in Asia – each operating under franchise arrangements. This includes the following regions; Singapore, Guam, Saipan, Thailand, Malaysia, Taiwan, Hong Kong, Brunei, Pakistan, Cambodia, Vietnam, Macao, Japan, Philippines, Korea, India and Mainland China.
“Our day-to-day operations will continue as they have been and not be impacted in any way by this filing.” Eoin Macneill, Vice President APAC, said.
Hertz will strive to provide rental vehicles to customers on an ongoing basis. It will also keeps its reservations, promotional offers, vouchers, loyalty and customer programs going.
Also read: Thai Airways to Undergo Rehabilitation in Contrast to Bankruptcy Reports
What is Chapter 11?
Chapter 11 is a legal process to allow a business to restructure its debts while remaining in operations. It presents the opportunity for a company to get back on its feet as opposed to liquidation.
Similarly, the financial reorganisation will allow Hertz to emerge stronger as it navigates the turbulent environment.
Hertz has taken actions to realign its expenditure with the stark drop in its revenue. This includes cutting all discretionary spending, reducing labour costs and seeking reductions in their commitments with suppliers and partners.
