Media reports indicate that AirAsia is on the verge of shutting down its joint venture airline in Japan.

An announcement about the closure of AirAsia Japan could come as soon as Monday, according to the Nikkei Asian Review, citing a source.

AirAsia Japan A320

Source: Wikimedia Commons

AirAsia Japan has three A320s in its fleet

According to a 30 September report by Japan’s Yomiuri Shimbun, relevant authorities have been notified of the closure.

AirAsia Japan is a joint venture between AirAsia Group, which holds 48.9%, and five Japanese shareholders. The other two major shareholders are Octave Infrastructure Fund, which owns 19%, and Rakuten, which owns 17%.

AirAsia Group declined to comment on the reports. 

“We have a strict policy of not commenting on rumours or speculation,” it says. “There is nothing to announce at this time.”

On 25 August, an AirAsia stock market filing in Malaysia showed that AirAsia Japan provided financial support of $6.27 million during the second quarter.

Earlier filings showed that AirAsia was providing liquidity support to AirAsia Japan as far back as March 2019, a full year before the coronavirus pandemic battered the airline market.

AirAsia Japan launched services on in October 2017. Cirium fleets data shows that it has three Airbus A320s in its fleet, of which one is in service and two are in storage.

The two stored aircraft are managed by SMBC Aviation Capital, while the in service jet is managed by Castlelake.

Updated with statement from AirAsia