AirAsia Declares Bankruptcy in the Most Recent COVID-19 Disaster

AirAsia Declares Bankruptcy in the Most Recent COVID-19 Disaster

AirAsia Declares Bankruptcy in the Most Recent COVID-19 Disaster

Kuala Lumpur-based Malaysian low-cost airline “AirAsia” has filed a declaration of bankruptcy with the Tokyo District Court after flagging last month it would cease operations in the country, as the coronavirus (COVID-19) pandemic that’s wiped out travel internationally took its toll.

However, the AirAsia Group which owns 33 percent of the Nagoya-based carrier stated in a Bursa Malaysia disclosure that the move was made due to the insolvency resulting from a demand slump in travel induced by lockdown restrictions related to the covid-19 epidemic.

In a statement on Tuesday, the company said due to the current financial situation of AirAsia Japan, we regret to inform you all that AirAsia Japan is currently unable to pay outstanding reimbursements and AirAsia sincerely apologize for any inconvenience caused to customers who have used or booked AirAsia Japan Flights.

Meanwhile, the largest airline in Malaysia by fleet size and destinations “AirAsia” has reported its largest loss on record in the second quarter (Q2) ended June 30 and has been under enormous pressure this year as coronavirus roils under aviation industry. The company internationally has been slumped into catastrophe, with many cutting thousands of jobs and trying to secure funds for survival whereas some pushed to the brink, have gone out of the company.

Moreover, the low-cost airline also stopped financing its Indian subsidiary, leaving the future of AirAsia India Limited and largely depending on its majority shareholder, the Indian conglomerate Tata Group

Lastly, AirAsia Japan had already canceled all flights, including one between Nagoya and Taipei, and customers who have booked AirAsia japan flights can apply for a refund, which should be available from April next year, or else they will receive a credit that can be used on any other AirAsia operated flight.

Leave a Reply

Your email address will not be published. Required fields are marked *