AirAsia Japan closed down

Created on 26.10.2020 09:12

AirAsia Japan, the Japanese division of the Malaysian low-cost carrier, has announced the termination of flights from October 5, 2020. The reason is caused by the inability to survive in the highly competitive Japanese market of low-cost transportation in the crisis under COVID-19 pandemic conditions, ATO writes.

“Despite our relentless efforts to support operations by consistent and varied cost-cutting initiatives, we figured out an extreme challenge for us to continue operating without any lumen or confidence about the possible dynamics of a post-pandemic market recovery,” stated Jun Aida, the Executive Director of AirAsia Japan.

AirAsia Japan was launched in 2017 with a fleet of three Airbus A320s aircrafts, operating domestic and international flights, but never became profitable. The airline's revenues had been hit by the coronavirus crisis, losses of ¥ 1.1 billion ($ 10.4 million) in the second quarter. Competition in the Japanese low-fare market has intensified significantly over the past few years. The country's two largest airlines have launched low-cost divisions: All Nippon Airways has created a Peach subsidiary, and Japan Airlines is a shareholder in Jetstar Japan. In addition, the low-cost airline Spring Airlines Japan operates on the market.

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