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Thai AirAsia plans to resume flights to Japan when the borders are reopened, but AirAsia Japan has become the latest victim of Covid. (Photo supplied)
AirAsia Japan Co filed for bankruptcy with the Tokyo District Court after noting last month that it would cease operations in the country as the coronavirus pandemic that wiped out travel around the world took its toll.
Flights between Japan and destinations such as Bangkok will continue to be operated by other AirAsia airlines.
The Japanese branch of Malaysia’s AirAsia Group Bhd received an interim administration order from the court on Tuesday, it said in a statement.
“Given AirAsia Japan’s current financial situation, we regret to inform you that AirAsia Japan is unable to settle outstanding repayments,” the statement said. “We sincerely apologize for any inconvenience caused to customers who have used or booked AirAsia Japan flights.”
AirAsia, which reported its biggest loss on record in the second quarter ended June 30, has been under immense pressure this year as Covid-19 shakes up the aviation industry. Airlines around the world have been plunged into a crisis, many of which have cut thousands of jobs and tried to raise funds to survive. Some, pushed to the edge of the abyss, have closed.
The low-cost carrier also stopped funding its Indian subsidiary, leaving the future of AirAsia India Ltd largely dependent on its majority shareholder, the Indian conglomerate Tata Group. The long-term budget arm AirAsia X Bhd is not doing much better, earlier this month it presented a new debt restructuring proposal to creditors.
AirAsia Japan had already canceled all flights, including one between Nagoya and Taipei. Services operated to Japan by other AirAsia airlines in places like Thailand and the Philippines will not be affected. International services to Japan from Malaysia, Thailand and the Philippines will resume as travel restrictions are eased and borders are reopened, the airline said Tuesday.
Customers who have booked AirAsia Japan flights can request 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.
