AirAsia Group Berhad has announced that it will be ceasing its operations in Japan. The cessation was filed by the company to Bursa Malaysia today on 5 October 2020.
The airline said it has been notified that the board of directors for AirAsia Japan (AAJ) have taken a decision to cease operations in the country with immediate effect. “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 that has plagued the world since early this year,” AirAsia wrote in the filing.
According to a report by Asian Aviation, representative director and COO Jun Aida said that AAJ has concluded that it would be a challenging feat to continue operating without any visibility and certainty of a post-pandemic recovery path. He added that the decision of cessation was agreed upon by the board after a thorough business review was conducted.
The cessation only affects the domestic and international flights operated by AAJ within the country and does not affect flights going in or out of Japan operated by other airlines within the AirAsia Group. AAJ has cancelled all flights and have contacted affected guests via email with further information.