AgenciesKUALA LUMPUR: Malaysia's flagship budget airline AirAsia Group Bhd is ceasing its Japanese operations immediately, it said in a bourse filing on Monday.
The airline said it has been notified that the AirAsia Japan (AAJ) board of directors have taken a decision to cease operations 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," it said.
Group Chief Executive Officer Tony Fernandes last month told Reuters that the group was reviewing its business in Japan due to the impact of the pandemic.
The airline said it has been notified that the AirAsia Japan (AAJ) board of directors have taken a decision to cease operations 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," it said.
Group Chief Executive Officer Tony Fernandes last month told Reuters that the group was reviewing its business in Japan due to the impact of the pandemic.