AirAsia Japan files for bankruptcy
[TOKYO] AirAsia Japan has filed for bankruptcy with the Tokyo District Court after flagging last month it would cease operations in the country, as the coronavirus pandemic that's wiped out travel globally took its toll.
The arm of Malaysia's AirAsia Group then received a provisional administration order from the court on Tuesday, it said in a statement.
"Given AirAsia Japan's current financial position, we regret to inform that AirAsia Japan is currently unable to settle the outstanding refunds," the statement said. "We sincerely apologise for any inconvenience caused to customers who have used or booked AirAsia Japan flights."
AirAsia, which reported its largest loss on record in the second quarter ended June 30, has been under immense pressure this year as Covid-19 roils the aviation industry. Airlines globally have been plunged into crisis, with many cutting thousands of jobs and trying to secure funds for survival. Some, pushed to the brink, have gone out of business.
The low-cost airline has also stopped funding its Indian affiliate, leaving the future of AirAsia India largely dependent on its majority shareholder, Indian conglomerate Tata Group. Long-haul budget arm, AirAsia X, isn't faring much better, earlier this month submitting a new debt restructuring proposal to creditors.
AirAsia Japan had already cancelled all flights, including one between Nagoya and Taipei. Services operated to Japan by AirAsia's other carriers in places like Thailand and the Philippines won't be affected. International services to Japan from Malaysia, Thailand and the Philippines will resume as travel restrictions are eased and borders reopen, the airline said Tuesday.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Customers who have booked AirAsia Japan flights can apply for a refund, which should be available from April next year, or they will receive a credit that can be used on any other AirAsia-operated flight.
BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
EV automakers get reprieve in US tax credit rules
Abu Dhabi hub carrier Etihad adds banks to US$1 billion IPO
Luminar to cut nearly 20% jobs as part of restructuring
Chinese share of French EV market slumps after incentives curbed
Ferrari unveils US$423,000 sports car with 1960s bloodline
Airbus called for compensation to take on money-losing Spirit operations: sources