AirAsia Japan files for bankruptcy as airline’s India arm drains cash

AirAsia Group is reviewing investment in its cash-starved Indian affiliate, hours after its Japan unit filed for bankruptcy. “Our businesses in Japan and India have been draining cash, causing the Group much financial stress,” Bo Lingam, president of airlines at AirAsia Group, said. “Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India.” AirAsia Japan filed for bankruptcy with the Tokyo District Court earlier Tuesday, after flagging last month it would cease operations in the country as the coronavirus pandemic that’s wiped out travel globally took its toll. Airasia Japan received a provisional administration order from the court Tuesday, it said. The group has also stopped funding AirAsia India, leaving the future of the company largely dependent on its 51% shareholder, Indian conglomerate Tata Group. Long-haul budget arm, AirAsia X, isn’t faring much better, earlier this month submitting a new debt restructuring proposal to creditors. Representatives for Tata and AirAsia India declined to comment. AirAsia Japan had already canceled all flights, including one between Nagoya and Taipei. Services operated to Japan by AirAsia’s other carriers in places like Thailand and the Philippines won’t be affected. International services to Japan from Malaysia, Thailand and the Philippines will resume as travel restrictions are eased and borders reopen, the airline said Tuesday. “Given AirAsia Japan’s current financial position, we regret to inform that AirAsia Japan is currently unable to settle the outstanding refunds,” according to another statement. “We sincerely apologize for any inconvenience caused to customers who have used or booked AirAsia Japan flights.”<br/>