AirAsia will cease operations in Japan immediately, the company said in a bourse filing on Monday., Reuters reported.
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The airline said it has been notified that the board of directors of its majority-own subsidiary AirAsia Japan (AAJ) has taken a decision to cease operations with immediate effect.
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“We respect and have agreed to the decision made by AAJ as this would reduce the cash burn of AAJ and the Company amid the highly challenging operating conditions in Japan which have been aggravated by the COVID-19 pandemic,” it said.
Group Chief Executive Officer Tony Fernandes last month told Reuters that the group was reviewing its business in Japan due to the impact of the pandemic.
“Despite our unrelenting efforts to sustain operations through successive and wide-ranging cost reduction initiatives, we have concluded that it would be an extremely challenging feat for us to continue operating without any visibility and certainty of a post-pandemic recovery path,” said Jun Aida, AAJ Representative Director and Chief Operating Officer.
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