Malaysian budget airline AirAsia Group will pull out of the Japanese market, as the coronavirus pandemic is likely to keep a lid on demand for air travel, its Japanese unit said Monday.
AirAsia Japan Co. will discontinue domestic routes between Chubu Centrair International Airport in Aichi Prefecture and three locations — Sapporo, Sendai and Fukuoka — and one international route connecting with Taipei on Dec. 5, becoming the first airline operating in Japan to close its business due to the virus outbreak.
When the struggling local unit launched an early retirement program in June to reduce labor costs, 70 out of 300 employees applied for the plan. Most other employees will be dismissed in November.