AirAsia Japan files for bankruptcy in latest Covid casualty

AirAsia Japan Co. has filed for chapter with the Tokyo District Court after flagging final month it might stop operations within the nation, because the coronavirus pandemic that’s worn out journey globally took its toll.

The arm of Malaysia’s AirAsia Group Bhd. then obtained a provisional administration order from the courtroom Tuesday, it mentioned in a press release.

“Given AirAsia Japan’s current financial position, we regret to inform that AirAsia Japan is currently unable to settle the outstanding refunds,” the assertion mentioned. “We sincerely apologize for any inconvenience caused to customers who have used or booked AirAsia Japan flights.”

AirAsia, which reported its largest loss on report within the second quarter ended June 30, has been below immense stress this yr as Covid-19 roils the aviation business. Airlines globally have been plunged into disaster, with many chopping 1000’s of jobs and making an attempt to safe funds for survival. Some, pushed to the brink, have gone out of enterprise.

The low-cost airline has additionally stopped funding its Indian affiliate, leaving the way forward for AirAsia India Ltd. largely depending on its majority shareholder, Indian conglomerate Tata Group. Long-haul price range arm, AirAsia X Bhd., isn’t faring a lot better, earlier this month submitting a brand new debt restructuring proposal to collectors.

AirAsia Japan had already canceled all flights, together with one between Nagoya and Taipei. Services operated to Japan by AirAsia’s different carriers in locations like Thailand and the Philippines gained’t be affected. International companies to Japan from Malaysia, Thailand and the Philippines will resume as journey restrictions are eased and borders reopen, the airline mentioned Tuesday.

Customers who’ve booked AirAsia Japan flights can apply for a refund, which needs to be out there from April subsequent yr, or they are going to obtain a credit score that can be utilized on some other AirAsia-operated flight.