AirAsia has decided to terminate its participation in the joint venture with ANA Holdings Inc under AirAsia Japan which was created two years ago. The joint venture faced many challenges since launch stemmed from a fundamental difference of opinion between its shareholders on how the business should be managed from cost management to where the domestic business operations should be based.
AirAsia Berhard has a 49% share in AirAsia Japan through AirAsia Investment Ltd comprising 25,120 voting shares and 23,880 non-voting shares at JPY 50,000 per share. ANA Holdings Inc will acquire AirAsia’s entire shareholding for JPY2,450,000,000. All AirAsia aircraft leased to AirAsia Japan will be returned by 1 November this year where AirAsia Japan will also unwind the use of the AirAsia brand in its operations. Flights on AirAsia Japan will continue as planned till 31 October 2013.
On the termination, AirAsia Group CEO Tony Fernandes said, “I have great respect for ANA as the leading legacy airline in Japan but it is time for us to part ways and focus our attention on what we do best, which is running a true LCC. Despite the cost issues, the AirAsia brand has resonated with Japanese customers and the trend we see for July and August is very strong for all of Japan. I remain positive on the Japanese market and believe there is tremendous opportunity for a LCC to succeed, as proven by the tremendous success AirAsia X has seen. We have not given up on the dream of changing air travel in Japan and look forward to returning to the market.”
AirAsia X will still continue its flights between Kuala Lumpur and Tokyo (Haneda) and Kuala Lumpur and Osaka (Kansai).
