AirAsia Group Bhd. will cease operations in Japan immediately as it tries to reduce cash burn amid the coronavirus outbreak that’s wiped out travel demand globally.
AirAsia Japan has stopped operations as of Monday, Southeast Asia’s second-biggest budget carrier said in a statement. That will help the parent conserve cash. Further steps on the decision will be made in accordance with applicable laws and regulations including the Japan Civil Aeronautics Act, it said.
The low-cost airline has been under immense pressure this year as Covid-19 roils the aviation industry. It reported its largest loss on record in the second quarter ended June 30 and Chief Executive Officer Tony Fernandes has been in talks for joint ventures and collaborations that may result in additional investment.