AirAsia approves shutting down Japan joint venture

Malaysia-based AirAsia Group, owned by aviation tycoon Tony Fernandes, is shutting down its Japan operations with an announcement slated for early next week, Nikkei Asia has learned, as the region's largest no-frills carrier struggles with grounded aircraft while most international borders remain closed as a result of the coronavirus pandemic. A source close to the company told Nikkei that AirAsia's directors, who met on Monday at the airline's headquarters near Kuala Lumpur International Airport, have decided to wind up the operations of AirAsia Japan -- a joint venture between AirAsia and Japanese partners. AirAsia Japan has informed the Aichi local government of its intention to give up the business, Kyodo reported on Wednesday citing an unnamed official. The company has two aircraft based at Nagoya Chubu Centrair International Airport in Aichi. According to the airline's stock exchange filing last month, AirAsia has an equity interest of 66.91% in AirAsia Japan with voting rights of 33%. The Japanese partners in the company include the country's leading e-commerce player Rakuten, Octave Japan Infrastructure Fund, cosmetics maker Noevir Holdings and sports equipment manufacturer Alpen. "An announcement is expected next Monday" and the Japanese operation "will be closed down," said the source. The person said factors contributing to the decision include that AirAsia Japan stopped selling tickets earlier this month, lack of demand and gloomy prospects for travel in Japan.<br/>