"AirAsia" shut down business in Japan due to Covid-19 affects aviation

Nikkei news agency of Japan reported, citing sources, that AirAsia a low-cost airline of Malaysia and the largest in Asia. It plans to shut down its business in Japan as the company has been hit by the Covid-19 epidemic and global travel restrictions.

News reports state that AirAsia will announce an official shutdown in Japan early next week. With the above movement After AirAsia executives had a meeting on Monday. And decided to close business in Japan.

Earlier, AirAsia X, which is an AirAsia subsidiary and operates long-haul flights with Japan on its route, was Revealed hard results in the second quarter amid the Covid-19 epidemic. Which affects the aviation business.

AirAsia X said, the company suffered a net loss of 305.2 million ringgit ($ 73.2 million) in the second quarter compared with a loss of 207.1 million ringgit in the same period a year ago. The company's revenue also plunged 91% to 91.4 million ringgit. The company still faces liquidity problems. And notified to creditors to request a moratorium on debt While the company will begin to cut staff salaries in September.

A few months ago, AirAsia CEO Tony Fernandes expressed confidence that AirAsia will turn to profit again in 2021. During an interview on CNBC's "Street Signs Asia", Fernandes explained: A much better response by Asian governments to the Covid-19 situation will help the regional aviation industry more stable.