AIR ASIA JAPAN LOWCOSTER COMPANY DECLARED BANKRUPTCY

Low-cost carrier AirAsia Japan Co Ltd (AAJ), a part of AirAsia Group Bhd, has filed for bankruptcy. The company made this decision due to insolvency caused by the social consequences of the COVID-19 pandemic. AAJ ceased operations last month, citing unbearable working conditions.

Air Asia Japan is the Japanese subsidiary of Air Asia Group, headquartered in Malaysia. The company was founded in 2014 as a joint venture between a Malaysian carrier (33% of the shares) and Japanese finance capital.

Until recently, the organization operated domestic and international flights. The company had been previously based at Chubu Centrair International Airport of the first class near Nagoya, the main air harbor in the central region of Japan.

Air Asia noted in its statement that demand was significantly impacted by the coronavirus restrictions and the uncertainty they caused.

Both business travel and tourist travel have been affected. The company was forced to cut and cancel flights, halting its operations.

As a result, AirAsia Japan canceled all the flights, including its main route between Japan and Taiwan. At the same time, AirAsia Group representatives expect that other international flights to Japan from Malaysia, Thailand and the Philippines will not be affected and the demand for flights will be restored as soon as the borders between the states open.

The customers who booked the flights of AAJ have been asked to apply for a refund, which will become available from April 2021.

Another solution to the problem is to obtain vouchers that passengers can use to fly on any flight operated by AirAsia aircraft. AirAsia Group management calls AAJ’s bankruptcy and liquidation the latest victim of the pandemic. Receiving the COVID-19 vaccine is expected to resume international flights.

The company released statistics on the third quarter of 2020, indicating a number of improvements in many key indicators. In particular, in comparison with the data of the second quarter, the number of passengers transported by AirAsia Malaysia (by 36%), AirAsia India (by 79%) and AirAsia Thailand (by 65%) increased. The sales figures also improved due to the conducted sales.

After the news about vaccine development success emerged in the media, the stock exchange ended with a rise in the value of AirAsia's shares, bringing the market value of Asia's largest low-cost airline to 2.56 billion malaysian ringgit (about $ 622 million).