Malaysia’s AirAsia Bhd said it is evaluating its loss-making budget airline joint venture in India with Tata Sons Ltd in the wake of the financial distress due to the coronavirus pandemic.
“Our businesses in Japan and India have been draining cash, causing the group much financial stress. 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,” the airline said in a statement.
“A detailed network and fleet optimization strategy has been implemented across the network, putting the right foundations in place for a sustainable and viable future.
We continually review our network to ensure we fly the most popular and profitable routes,” AirAsia Bhd said, adding that the airline would focus on the Asean region, where its operations are the strongest.
Tata Sons, the holding company of the Tata group, has a 51% stake in AirAsia India. AirAsia Group owns the remaining 49%.
