AirAsia Shares Fall as Carrier Rethinks India Investment

Shares in AirAsia fell as much as 8 per cent on Wednesday after the Malaysian budget carrier said it would review its investment in India, the strongest signal yet it is reassessing its south Asia business, the Financial Times reported. The statement on Tuesday night came hours after AirAsia’s Japanese unit filed for bankruptcy in the Tokyo District Court, citing “insolvency resulting from a demand slump in travel induced by lockdown restrictions related to the coronavirus pandemic”. AirAsia’s Japan and India businesses had been “draining cash, causing the group much financial stress”, said Bo Lingam, AirAsia president. “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.” Read more