TOKONAME (Aichi Pref.): AirAsia Japan said Tuesday that the low-cost carrier has filed for bankruptcy proceedings with Tokyo District Court.

This is the first bankruptcy filing by an airline in Japan amid the novel coronavirus pandemic. AirAsia left about 21.7 billion yen in liabilities.

In the face of a plunge in the number of passengers blamed on the coronavirus crisis, AirAsia Japan, based in the city Tokoname, Aichi Prefecture, central Japan, had already decided to end its operations on Dec. 5.

The court on Tuesday issued an order banning the company from disposing of its assets.

The airline has sold flight tickets to some 23,000 people, excluding tickets sold through travel agencies, and is required to spend more than 520 million yen on refunds.

At a press conference in Tokoname, lawyer Tamotsu Ueno showed a plan to hold talks with companies that have equity stakes in and have sent board directors to AirAsia, such as cybermall operator Rakuten Inc. and sporting goods firm Alpen Co., for financial aid for the refunds.

AirAsia is expected to launch bankruptcy proceedings in or after January 2021, when it finishes the return of leased aircraft.

The Japanese unit of Malaysian budget airline group AirAsia was established in July 2014. It operated flights linking Chubu Centrair International Airport in Aichi, with three Japanese cities, including Sapporo, the capital of the northernmost prefecture of Hokkaido, and flights between Chubu Centrair and Taipei.

Since April this year, AirAsia Japan has suspended all flights, except for a period in summer.

JIJI Press