The final end of the low-cost airline Air Asia Japan is within reach, as the carrier filed for bankruptcy in a Japanese court on Tuesday. Parent company Air Asia Group stated in a stock exchange announcement that the investment in the offshoot in Japan, in which it holds 33 percent, will be written off in full.

The Japanese lowcoster ceased flight operations on October 5, 2020 due to the corona crisis on. With just three Airbus A320s, it was the smallest operational Air Asia offshoot. The group of companies wants to continue to be present in Japan in the future, but only flying in from other countries.

The debt reported in the filing for bankruptcy is the equivalent of about $ 209 million. The debt for tickets that can no longer be used is approximately $ 280 million. Of the approximately 50 employees, all but a XNUMX-strong management team have already been laid off.

In a stock exchange announcement, the Air Asia Group surprisingly also questions the future of Air Asia India. The company has a 49 percent stake in this offshoot. The parent company announced that it is examining an exit.

“Our stores in Japan and India have used up cash, which has taken a heavy toll on the group financially. Curbing costs and reducing cash usage remain key priorities resulting from the recent shutdown of AirAsia Japan and an ongoing review of our investment in AirAsia India. A detailed strategy for network and fleet optimization was implemented throughout the network, creating the right basis for a sustainable and viable future. We are continuously reviewing our network to ensure that we are flying the most popular and most profitable routes, ”said Air Asia Group in a stock exchange release.

It remains to be seen whether the Indians will have the same fate as their Japanese colleagues. Majority owner Tata is said to have shown willingness to take over the carrier completely and to equip it with new capital. But that's not fixed yet. Air Asia India currently operates 30 Airbus A320s and one A320neo.