by S BIRRUNTHA/ pic by MUHD AMIN NAHARUL
AirAsia Group Bhd’s 33%-owned associate company in Japan, AirAsia Japan Co Ltd (AAJ) filed for bankruptcy yesterday, after announcing last month that it would cease operations in the country.
In an exchange filing, the airline said it was due to insolvency resulting from a demand slump in travel induced by lockdown restrictions related to the Covid-19 pandemic.
“Total cost of investment in AirAsia Japan has been fully written down,” it added.
On Oct 5, the group announced that its board of directors had decided to cease AAJ’s operations with immediate effect.
It noted that this would reduce the cash burn of AAJ and the group 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.
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