KUALA LUMPUR (Nov 23): AirAsia Group Bhd is reviewing its investment in low-cost carrier AirAsia India, which has been “draining cash” and causing much financial stress.

India’s English-language daily newspaper The Hindu last week reported that AirAsia had flagged concerns about its businesses in Japan and India.

The report said AirAsia India — a joint venture between AirAsia Investment Ltd and Tata Sons that started operations more than six years ago — has been facing headwinds for quite sometime.

The Hindu quoted President (Airlines) of AirAsia Group, Bo Lingam as saying that the carrier’s businesses in Japan and India as having 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,” he said in a statement, it said.

The report said AirAsia, in its third quarter operating statistics highlighted the clear, quick path to recovery is well underway.

“There were strong improvements from every major domestic airline in the Group across many key metrics in comparison to the preceding quarter.

“These include a 36 per cent increase in passengers carried by AirAsia Malaysia, 79 per cent increase in passengers carried by AirAsia India and an increase of 65 per cent of passengers carried by AirAsia Thailand,” it cited the airline as saying.

The Hindu said an AirAsia India spokesperson declined to comment.

It added that a Tata Sons spokesperson also did not offer any comments.

Headquartered in Bengaluru, AirAsia India flies to 19 destinations across India with 31 Airbus A320 aircraft.
It commenced operations on June 12, 2014.

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