Without clear timeline for industry recovery, shutting down only option for budget carrier

Taiwan News
Date: 2020/10/06
By George Liao, Taiwan News, Staff Writer

TAIPEI (Taiwan News) — Budget airline AirAsia Japan announced on Monday (Oct. 5) that it will officially drop all four of its flight routes on Dec. 5, becoming the first Japanese airline to entirely suspend operations due to the COVID-19 pandemic.

AirAsia Japan suspended all its flights in April but resumed some in August. However, on Monday, the airline announced its plan to halt all operations, citing a slower-than-expected increase in demand, per CNA.

In June, AirAsia offered a voluntary retirement scheme to its employees, and about 70 of its approximately 300 workers took the offer and left the company. Since then, prompted by an uncertain timeline for the industry’s recovery, the airline has submitted a report to Japan’s Ministry of Land, Infrastructure, Transport and Tourism, stating that it will stop operating all four routes on Dec. 5.    [FULL  STORY]