Malaysian low-cost carrier AirAsia Group Bhd. is reviewing investment in its cash-starved Indian affiliate, hours after its Japan unit filed for bankruptcy.
¡°Our businesses in Japan and India have been draining cash, causing the Group much financial stress,¡± Bo Lingam, president of airlines at AirAsia Group, said in a statement on its website. ¡°Cost containment and reducing cash burns remain key priorities evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India.¡±
AirAsia Japan Co. filed for bankruptcy with the Tokyo District Court earlier Tuesday, after flagging last month it would cease operations in the country as the coronavirus pandemic that¡¯s wiped out travel globally took its toll. Airasia Japan received a provisional administration order from the court Tuesday, it said in a statement.
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