AirAsia shuts Japan operations

KUALA LUMPUR, Oct 05 (Reuters): Malaysia's flagship budget airline AirAsia Group Bhd is ceasing its Japanese operations immediately, the carrier said in a bourse filing on Monday.
The airline said it has been notified that the board of directors of its majority-own subsidiary AirAsia Japan (AAJ) has taken a decision to cease operations with immediate effect.
"We respect and have agreed to the decision made by AAJ as this would reduce the cash burn of AAJ and the Company amid the highly challenging operating conditions in Japan which have been aggravated by the COVID-19 pandemic," it said.
Group Chief Executive Officer Tony Fernandes last month told Reuters that the group was reviewing its business in Japan due to the impact of the pandemic.
The group, which employs around 300, has reported it flew 98 per cent fewer passengers in April-June than in the same period of last year.
AAJ Representative Director and Chief Operating Officer Jun Aida said in a separate statement that the decision was made after a thorough business review.
An Arab News adds: Muscat-based Oman Air has unveiled its Covid-19 insurance coverage for passengers, national daily Times of Oman has reported, in a bid to encourage people to travel.
The insurance will cover expenses related to medical treatment or quarantine due to the coronavirus. It will take effect from Oct. 1 to March next year.
The move comes as the national carrier returns to scheduled service to 12 countries, including the UAE.