AirAsia India had been draining cash even before COVID-19 pandemic had hit the aviation sector world over. The pandemic has only worsened the financial woes for the carrier which had last month also ceased its Japanese operations citing challenging operating conditions. The company’s Japanese arm had filed for bankruptcy earlier.
Company's president Bo Lingam said, "Cost containment and reducing cash burns remain key priorities, evident by the recent closure of AirAsia Japan and an ongoing review of our investment in AirAsia India."
AirAsia holds 49 per cent share in AirAsia India, with Tata Sons holding the remaining 51 per cent share. It has been unprofitable since its inception. The latter is in talks to buy out AirAsia's share. It holds the right of first refusal for the minority stake held by AirAsia in the Indian joint venture.
The airline employs 3,000 people in India and has a market share of seven per cent.
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