AirAsia Japan, a unit of Malaysia-based AirAsia Group, is shutting down its operations effective today, 5 October, due to “highly challenging operating conditions”.
Jun Aida, representative director and COO of AirAsia Japan, elaborated on the reason for the airline’s closure: “Despite our unrelenting efforts to sustain operations through successive and wide-ranging cost reduction initiatives, we have concluded that it would be an extremely challenging feat for us to continue operating without any visibility and certainty of a post-pandemic recovery path.”
He added that “this painful decision to cease operations was decided neither in haste nor taken lightly. It was agreed upon after conducting a thorough business review.”
The decision is made in accordance with the applicable laws and regulations including the Japan Civil Aeronautics Act.
Aida said that all flights have been cancelled. “All affected guests will be contacted via email with further information within the next seven days.”
Incorporated in July 2014, AAJ has been operating domestic and international flights from its base in Chubu Centrair International Airport, just outside Nagoya, with three aircraft. It employs about 300 people.
The carrier has not been spared the adverse economic impact of the Covid-19 pandemic on businesses and economies around the world. Travel restrictions and the uncertainties created have also severely curtailed demand for business and leisure travel resulting in flight reductions, cancellations and grounding of aircraft. “These factors have weighed heavily on the company’s ability to continue operations,” it revealed.
On the same day as AAJ announced it is shutting down AirAsia Group, in a filing with Malaysia’s stock exchange, said its Japan’s affiliate was stopping its operations.
The low cost carrier disclosed it had been notified of the decision taken by AAJ’s board of directors to cease operations with immediate effect.
“We respect and have agreed to the decision made by AAJ as this would reduce the cash burn of AAJ and the Company amid the highly challenging operating conditions in Japan, which have been aggravated by the Covid-19 pandemic that has plagued the world since early this year.”
Group CEO Tony Fernandes told reporters after the launch of the Redbeard Academy on 1 October that the company was exploring all options over its operations in Japan, which was seeing lower-than-expected demand due to the pandemic. He was responding to reports of possible closure of AAJ.
He said then that the options could include closing down the operations although no decision was reached at that time.
The cessation of AAJ only affects its domestic and international flights (with letter code DJ), and does not affect other flights into and out of Japan operated by other airlines within the AirAsia Group.
AirAsia said its international services to Japan from Malaysia, Thailand and the Philippines would resume when travel restrictions are lifted and borders with Japan are reopened.
Guests who have booked flights on AirAsia Japan are also advised to get more information from the support pages.
• Featured image credit: AirAsia
