AirAsia Japan files for bankruptcy in latest Covid casualty

2 min readUpdated May 28, 2025Nov 20, 202011:14 PM

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AirAsia Japan Co has filed for bankruptcy with the Tokyo District Court after flagging last month it would cease operations in the country, as the coronavirus pandemic that’s wiped out travel globally took its toll.

Flights between Japan and destinations such as Bangkok will continue to be operated by other AirAsia carriers.

The Japanese arm of Malaysia’s AirAsia Group Bhd received a provisional administration order from the court Tuesday, it said in a statement.

“Given AirAsia Japan’s current financial position, we regret to inform that AirAsia Japan is currently unable to settle the outstanding refunds,” the statement said. “We sincerely apologize for any inconvenience caused to customers who have used or booked AirAsia Japan flights.”

AirAsia, which reported its largest loss on record in the second quarter ended June 30, has been under immense pressure this year as Covid-19 roils the aviation industry. Airlines globally have been plunged into crisis, with many cutting thousands of jobs and trying to secure funds for survival. Some, pushed to the brink, have gone out of business.

The low-cost airline has also stopped funding its Indian affiliate, leaving the future of AirAsia India Ltd largely dependent on its majority shareholder, Indian conglomerate Tata Group. Long-haul budget arm, AirAsia X Bhd, isn’t faring much better, earlier this month submitting a new debt restructuring proposal to creditors.

AirAsia Japan had already canceled all flights, including one between Nagoya and Taipei. Services operated to Japan by AirAsia’s other carriers in places like Thailand and the Philippines won’t be affected. International services to Japan from Malaysia, Thailand and the Philippines will resume as travel restrictions are eased and borders reopen, the airline said Tuesday.

Customers who have booked AirAsia Japan flights can apply for a refund, which should be available from April next year, or they will receive a credit that can be used on any other AirAsia-operated flight.

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What this means

AirAsia Japan's bankruptcy filing is a stark reminder of the immense pressures facing travel-dependent sectors in Asia. While the move helps AirAsia Group shed a significant loss-making entity, it puts immense pressure on remaining low-cost carriers operating in competitive markets like Japan. Its failure to settle immediate customer refunds will significantly erode trust, a crucial asset for an airline, and compares unfavourably with Hilton's continued investment in Japan, evidenced by the Conrad Nagoya opening. The group's broader strategy now hinges on its ability to navigate AirAsia X's debt restructuring and its Indian affiliate's future. Retail executives should monitor whether AirAsia's refund availability from April next year stems the brand damage.

Aiko Tanaka · Retail News Asia newsroom

Questions & Answers

Will all AirAsia flights in Japan cease operations?

No, only flights operated by AirAsia Japan are affected. Flights between Japan and destinations like Bangkok will continue to be operated by other AirAsia carriers.

What is the status of refunds for AirAsia Japan customers?

AirAsia Japan regrets it cannot settle outstanding refunds currently due to its financial position. Refunds should be available from April next year, or customers can receive a credit.

How has the wider AirAsia Group been affected by current events?

The AirAsia Group reported its largest loss on record recently and has stopped funding its Indian affiliate. Its long-haul budget arm, AirAsia X Bhd, also submitted a debt restructuring proposal.

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