Malaysian low-cost carrier AirAsia Group Bhd. 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 in a statement on its website. "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 Co. 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 in a statement.