Business

AirAsia mulls shutting Japan operations

The company's board is open to all options, including shutting down AirAsia Japan

Updated 5 years ago · Published on 01 Oct 2020 5:30PM

AirAsia mulls shutting Japan operations
AirAsia aircraft are seen parked on the tarmac at the Kuala Lumpur International Airport 2 in Sepang on April 29. – AFP pic, October 1, 2020

KUALA LUMPUR – AirAsia Group chief executive officer Tan Sri Tony Fernandes said that the low-cost airline is open to exploring all options with regards to its operation in Japan, including closing it down.

“We have to look at every option, including closing down the operation. We haven’t reached a decision yet,” he said, commenting on recent reports which stated that the group is planning to discontinue AirAsia Japan's operations, as demand remained weak due to the Covid-19 pandemic.

Fernandes said this to reporters after the Redbeat Academy’s launch today.

On the termination of AirAsia’s flights from Malaysia to Japan, he said that it was merely speculative and the board had not made a decision.

He added that currently the airline is unable to fly to Japan due to the international border shutdown, and since its presence is relatively small in Japan, the board is currently evaluating all possibilities, including the cessation of its flights to the country.

Meanwhile, during the event, Fernandes said the academy was initially established in the belief that the digitalisation of its airline operation may lead to many of its staff being left redundant.

“Hence, we have Redbeat Academy. But now, of course, we are in a position where the airline has to make retrenchments, and it's unavoidable. And many of them, hopefully, will come here (Redbeat) and reskill themselves as well,” he added. – Bernama, October 1, 2020

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