AirAsia Japan, an affiliate of low-cost carrier Air Asia, filed bankruptcy at the Tokyo District Court on Tuesday.
Air Asia Japan started flight operations just three years ago from its hub at Centrair Chubu International Airport (NGO) near Nagoya to three domestic destinations of Sapporo Shin-Chitose, Sendai, and Fukuoka as well as one international route to Taipei. Its total debt is estimated at about JPY 22 billion. With a forthcoming decision by the courthouse, the carrier will start bankruptcy processes.
However, with the overwhelming negative impact of COVID-19, the carrier saw its revenue dropping and no sign of recovery leading to cease all operations by December 5, 2020.
Its employees counting 280 are now mostly dismissed and looking for new employment opportunities.
