File photo for illustration purposes
KUALA LUMPUR, Nov 17 — AirAsia Group Bhd’s 33 per cent-owned associate company in Japan, AirAsia Japan Co Ltd (AAJ), today filed for bankruptcy.
“(This was) due to insolvency resulting from a demand slump in travel induced by lockdown restrictions related to the coronavirus pandemic,” the airline said in a filing with Bursa Malaysia today.
AirAsia Group holds the interest in AAJ via its shareholding in AirAsia Investment Ltd.
On Oct 5, the group announced that its board of directors had decided to cease AAJ’s operations with immediate effect to reduce its cash burn amid the highly challenging operating conditions in Japan which have been aggravated by the Covid-19 pandemic. — Bernama