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AirAsia approves shutting down Japan joint venture

AirAsia Japan hit by plunge in travel demand amid coronavirus pandemic

AirAsia Group is reassessing its businesses after performance deteriorated due to a drop in air travel demand caused by the coronavirus pandemic. (Photo by Masayuki Terazawa)

KUALA LUMPUR -- Malaysia-based AirAsia Group, owned by aviation tycoon Tony Fernandes, is shutting down its Japan operations with an announcement slated for early next week, Nikkei Asia has learned, as the region's largest no-frills carrier struggles with grounded aircraft while most international borders remain closed as a result of the coronavirus pandemic.

A source close to the company told Nikkei that AirAsia's directors, who met on Monday at the airline's headquarters near Kuala Lumpur International Airport, have decided to wind up the operations of AirAsia Japan -- a joint venture between AirAsia and Japanese partners.

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