AirAsia Group Bhd's 33 percent affiliate in Japan, AirAsia Japan Co Ltd (AAJ), filed for bankruptcy.
"(This was) due to insolvency resulting from a demand slump in travel induced by lockdown restrictions related to the coronavirus pandemic,” the airline said in a filing with Bursa Malaysia.
AirAsia Group retains an interest in AAJ through its shareholding in AirAsia Investment Ltd.
On October 5, the Group declared that its Board of Directors had agreed to cease operations of AAJ with immediate effect to minimise its cash burn in the extremely demanding operating conditions in Japan that were complicated by the COVID-19 pandemic.
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