The lure of Asia-Pacific market growth potential has spurred the region’s LCCs to dramatically inflate manufacturers’ narrowbody orderbooks in recent years.
AirAsia X is liquidating its Indonesian unit and has written down its 49% holding in Thai AirAsia X as the long-haul LCC struggles to pay for aircraft leases across all of its AOCs.
AirAsia Japan confirmed that it has ceased operation as of Oct. 5 after the COVID-19 crisis compounded the carrier’s challenges in the competitive Japanese LCC market.
AirAsia Japan’s shareholders are reportedly preparing to shut down the carrier, as the AirAsia Group focuses its attention on its Southeast Asian operations.
AirAsia is turning to its digital and e-commerce portfolio as an alternate revenue stream while the Malaysia-based LCC group’s network remains disrupted because of the COVID-19 pandemic.
AirAsia has restructured its engineering operations into a wholly owned subsidiary, which will provide MRO services to the group’s airlines and also third-party customers.
AirAsia is hoping to raise MYR2.5 billion ($602 million) by the end of the year while the fate of its Japanese operation is unclear after it was put under review.
AirAsia Group Berhad is preparing to rely on its six airlines’ domestic markets for revenue in the remaining months of 2020 after the LCC group had “stabilized” in the second quarter following the outbreak of COVID-19.
A new event is being launched by Routes which will provide an innovative platform for the aviation industry to rebuild air services in the post-pandemic era.
AirAsia has highlighted its efforts to raise new funds and cut costs as it seeks to reassure investors following an auditor’s report that questioned the carrier’s financial viability.
Trading of AirAsia Group Berhad stock was temporarily halted on the morning of July 8 after auditor Ernst & Young (EY) questioned the LCC’s ability to shore up its funds to stay afloat.
AirAsia Group has posted a net loss of MYR953.3 million ($223 million) for Q1 of 2020, the largest loss the company has recorded since its listing in 2004.
Southeast Asia’s largest LCC AirAsia Group is reportedly looking to sell 10% of its equity to South Korea’s SK Group to raise funds as the ongoing COVID-19 crisis impacts cashflow.
AirAsia is trialing a personal protective equipment (PPE) uniform for its cabin crew as the LCC group prepares for the resumption of flights in some markets.
Malaysia LCC AirAsia is asking passengers to opt for credited tickets as it struggles with a massive backlog of ticket refunds as well as a disruption in cashflow.
The Malaysian Aviation Commission (MAVCOM) is urging aviation stakeholders to only seek financial help from Malaysia’s government “as a last resort” with fiscal resources stretched amid the COVID-19 crisis.
AirAsia is grounding of most of its fleet due to “extensive and increasing border restrictions.” The Malaysian group originally planned to offer more than 9 million seats across its network during April.
AirAsia Group has confirmed that it is temporarily grounding most of its fleet, and its core Malaysia-based operation is suspending all international and domestic flights.
AirAsia said an independent inquiry into bribery allegations has determined no wrongdoing occurred, and the group’s two leading figures have been restored to their positions.