AirAsia India could be next casualty amid Malaysian carrier’s pandemic woes

The pandemic is hitting Asia’s largest low-cost airline hard

AirAsia Group’s India operations have been put on watch by the parent group as the budget carrier is struggling with massive losses from collapsed travel demand in the wake of the coronavirus pandemic.

According to a report in the Times of India, AirAsia is reviewing its investment in AirAsia India and could exit the country.

The airline is a joint venture with Tata Sons holding a 51 per cent stake and AirAsia Investment Limited, which holds the remaining 49 per cent.

Sources quoted by the Times of India said Tata Sons was in discussions to buy the Malaysian group’s stake. The news came after AirAsia shut down its operations in Japan and the unit there declared bankruptcy on November 18.

AirAsia acknowledged in a statement that its operations in Japan and India have been draining cash, causing the group “much financial stress.”

“Cost containment and reducing cash burns remain key priorities evident by the closure of AirAsia Japan and an ongoing review of our investment in AirAsia India,” AirAsia Group president for the airline business, Bo Lingam, said.

Group remains confident about post Covid-19 era

Despite these setbacks, he insisted that the group remained “confident of returning stronger, more robust and faster than many competitors in this new world of travel.”

Lingam attributed his optimism to positive developments on travel bubbles already being formed in Asia, such as the Singapore-Hong Kong route starting from November 22, as well as hopes over Covid-19 vaccines in near final stages of testing.

“The general outlook is that air travel will be bouncing back real soon; we expect to get back to pre-pandemic levels on many routes across the Group by mid-2021, if not earlier,” he said.



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The pandemic is hitting Asia's largest low-cost airline hard AirAsia Group’s India operations have been put on watch by the parent group as the budget carrier is struggling with massive losses from collapsed travel demand in the wake of the coronavirus pandemic. According to a report in the Times of India, AirAsia is reviewing its investment in AirAsia India and could exit the country. The airline is a joint venture with Tata Sons holding a 51 per cent stake and AirAsia Investment Limited, which holds the remaining 49 per cent. Sources quoted by the Times of India said Tata Sons...

The pandemic is hitting Asia’s largest low-cost airline hard

AirAsia Group’s India operations have been put on watch by the parent group as the budget carrier is struggling with massive losses from collapsed travel demand in the wake of the coronavirus pandemic.

According to a report in the Times of India, AirAsia is reviewing its investment in AirAsia India and could exit the country.

The airline is a joint venture with Tata Sons holding a 51 per cent stake and AirAsia Investment Limited, which holds the remaining 49 per cent.

Sources quoted by the Times of India said Tata Sons was in discussions to buy the Malaysian group’s stake. The news came after AirAsia shut down its operations in Japan and the unit there declared bankruptcy on November 18.

AirAsia acknowledged in a statement that its operations in Japan and India have been draining cash, causing the group “much financial stress.”

“Cost containment and reducing cash burns remain key priorities evident by the closure of AirAsia Japan and an ongoing review of our investment in AirAsia India,” AirAsia Group president for the airline business, Bo Lingam, said.

Group remains confident about post Covid-19 era

Despite these setbacks, he insisted that the group remained “confident of returning stronger, more robust and faster than many competitors in this new world of travel.”

Lingam attributed his optimism to positive developments on travel bubbles already being formed in Asia, such as the Singapore-Hong Kong route starting from November 22, as well as hopes over Covid-19 vaccines in near final stages of testing.

“The general outlook is that air travel will be bouncing back real soon; we expect to get back to pre-pandemic levels on many routes across the Group by mid-2021, if not earlier,” he said.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

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Personal Info

Donation Total: $10.00

 

 

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