Japan's ANA to form low-cost carrier with AirAsia

Japan's All Nippon Airways and Southeast Asia's largest budget carrier AirAsia on Thursday said they will form a joint venture to establish a low-cost airline that will be based in Tokyo.

AirAsia Japan will be the first low-cost carrier to be based at Tokyo's Narita International Airport when it begins domestic and international operations in August 2012, the companies said.

The Japanese carrier will hold a 67 percent stake in the AirAsia Japan venture in terms of voting rights, with AirAsia holding the remainder.

They cited Japan's aviation market as "undergoing rapid transformation with developments including the expansion of Open Skies agreements and increased domestic competition from road and rail-based travel."

AirAsia Japan will serve the Japanese domestic market from Narita airport as well as South Korea and Taiwan.

Narita, a major international hub is also seeking to increase capacity with the introduction of a new terminal and is expected to attract many low-cost carriers and foreign airlines, amid expectations of increasing competition in Japanese airspace.

Japan's existing cheaper domestic carriers such as Skymark and Air Do have been unable to offer the kind of heavily discounted fares associated with budget airlines in the United States and Europe due to higher operating costs.

AirAsia has other similar joint-ventures in Southeast Asia - in Thailand, Vietnam, the Philippines and Thailand - while its long-haul airline AirAsia X flies to Tokyo's Haneda airport.

"AirAsia Japan will not only boost economic growth between ASEAN and East Asia by providing better access to markets around the region, but also enhance links within travel, trade and tourism," Air Asia CEO Tony Fernandes said in a statement.

ANA holds a 33.4 percent stake in budget carrier Peach, which aims to begin domestic services out of Kansai International Airport in the western Japanese city of Osaka in March 2012.

Shares in AirAsia were up 2.6 percent at 3.5 ringgit in Kuala Lumpur, while ANA shares closed 0.37 percent higher at 271 yen in Tokyo trade ahead of the announcement.

dwa/jah

 

Have you tried new the Independent Digital Edition apps?
Travel
ebookHow to enjoy the perfect short break in 20 great cities
Independent Travel Videos
Independent Travel Videos
Simon Calder in Amsterdam
Independent Travel Videos
Simon Calder in Giverny
Independent Travel Videos
Simon Calder in St John's
Independent Travel Videos
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Travel

    Guru Careers: Events Coordinator / Junior Events Planner

    £24K + Excellent Benefits: Guru Careers: We are seeking an Events Coordinator ...

    Royal Yachting Association Cymru Wales: Chief Executive Officer

    Salary 42,000: Royal Yachting Association Cymru Wales: The CEO is responsible ...

    Guru Careers: Marketing Manager / Marketing Communications Manager

    £35-40k (DOE) + Benefits: Guru Careers: We are seeking a Marketing Communicati...

    Ashdown Group: Technical IT Manager - North London - Growing business

    £40000 - £50000 per annum: Ashdown Group: A growing business that has been ope...

    Day In a Page

    Is a quiet crusade to reform executive pay bearing fruit?

    Is a quiet crusade to reform executive pay bearing fruit?

    Dominic Rossi of Fidelity says his pressure on business to control rewards is working. But why aren’t other fund managers helping?
    The King David Hotel gives precious work to Palestinians - unless peace talks are on

    King David Hotel: Palestinians not included

    The King David is special to Jerusalem. Nick Kochan checked in and discovered it has some special arrangements, too
    More people moving from Australia to New Zealand than in the other direction for first time in 24 years

    End of the Aussie brain drain

    More people moving from Australia to New Zealand than in the other direction for first time in 24 years
    Meditation is touted as a cure for mental instability but can it actually be bad for you?

    Can meditation be bad for you?

    Researching a mass murder, Dr Miguel Farias discovered that, far from bringing inner peace, meditation can leave devotees in pieces
    Eurovision 2015: Australians will be cheering on their first-ever entrant this Saturday

    Australia's first-ever Eurovision entrant

    Australia, a nation of kitsch-worshippers, has always loved the Eurovision Song Contest. Maggie Alderson says it'll fit in fine
    Letterman's final Late Show: Laughter, but no tears, as David takes his bow after 33 years

    Laughter, but no tears, as Letterman takes his bow after 33 years

    Veteran talkshow host steps down to plaudits from four presidents
    Ivor Novello Awards 2015: Hozier wins with anti-Catholic song 'Take Me To Church' as John Whittingdale leads praise for Black Sabbath

    Hozier's 'blasphemous' song takes Novello award

    Singer joins Ed Sheeran and Clean Bandit in celebration of the best in British and Irish music
    Tequila gold rush: The spirit has gone from a cheap shot to a multi-billion pound product

    Join the tequila gold rush

    The spirit has gone from a cheap shot to a multi-billion pound product
    12 best statement wallpapers

    12 best statement wallpapers

    Make an impact and transform a room with a conversation-starting pattern
    Paul Scholes column: Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?

    Paul Scholes column

    Does David De Gea really want to leave Manchester United to fight it out for the No 1 spot at Real Madrid?
    Season's finale brings the end of an era for top coaches and players across the continent

    The end of an era across the continent

    It's time to say farewell to Klopp, Clement, Casillas and Xavi this weekend as they move on to pastures new, reports Pete Jenson
    Bin Laden documents released: Papers reveal his obsession with attacking the US and how his failure to keep up with modern jihad led to Isis

    'Focus on killing American people'

    Released Bin Laden documents reveal obsession with attacking United States
    Life hacks: The innovations of volunteers and medical workers are helping Medécins Sans Frontières save people around the world

    Medécins Sans Frontières's life hacks

    The innovations of volunteers and medical workers around the world are helping the charity save people
    Ireland's same-sex marriage vote: As date looms, the Irish ask - how would God vote?

    Same-sex marriage

    As date looms, the Irish ask - how would God vote?
    The underworld is going freelance: Why The Godfather's Mafia model is no longer viable

    The Mafia is going freelance

    Why the underworld model depicted in The Godfather is no longer viable