AirAsia-ANA tie-up - AirAsia Japan

[flee 5]

PETALING JAYA: AirAsia is likely to have a joint venture with Japan's largest carrier - All Nippon Airways (ANA) - to set up a low cost airline likely to be called AirAsia Japan.

 

An announcement on the collaboration is expected to be made next week and it would involve the setting up of a low cost carrier (LCC) and a hub in Japan by AirAsia. The LCC will serve the domestic market and eventually regional markets, sources say.

 

Like its other joint ventures in Indonesia, Thailand, the Philippines and Vietnam, AirAsia will partner ANA, which may lead in equity share holding but operationally, the Malaysian carrier will be in the driver's seat.

 

Whether this JV will involve ANA's recently launched low cost unit, Peach Aviation, is not clear.

 

Peach, which is said to have received its Air Operators' Certificate from the country's Civil Aviation Bureau is owned by ANA in partnership with Hong Kong's First Eastern Investment Group and Japan's Innovative Network. All three parties own a 33.3% each in Peach.

 

Peach is supposed to operate in March next year from Kansai International Airport and AirAsia Japan probably will operate from either Tokyo or even Fukukoa.

 

There are plenty of choices for AirAsia to operate from including Fukukoa Osaka, Sapporo, Haneda and even Kansai.

 

Narita Airport, based in Tokyo, is the busiest airport in Japan and last year it said it would open a terminal exclusively for low-cost airlines in a bid to grab a larger slice of the increasingly competitive Asian tourism market.

 

For AirAsia which is still in expansion mode, the JV bodes well in terms of reach and connectivity. Even though AirAsia's sister airline, AirAsia X flies to Tokyo via Haneda, a hub gives the airline exposure to a new market, traffic and connectivity that enlarges its route network.

 

This venture will eventually translate to additional revenues for AirAsia in the longer term.

 

AirAsia joint venture in the Philippines is set to take off in October this year from Clark. Both ThaiAirAsia and IndoAirAsia have grown in size to become candidates for initial public offerings.

 

ANA is the eighth largest airline in the world by revenues and the largest in Japan by passenger numbers. Founded in 1952, it flies to 76 domestic and international cities in a fleet of 228 aircraft serving a network of 164 routes.

 

ANA has 33,000 employees and operates more than 1,000 flights a day. In 2009, it carried 44 million passengers.

 

ANA has been a core member of Star Alliance since 1999. It has a 47% share in Japan's domestic passenger services market.

 

ANA's rival is Japan Airlines (JAL) which is also in talks with Qantas to set up its own low cost airline. JAL is a member of oneworld and ANA has a code share arrangement with Malaysia Airlines.

 

ANA will also be launching the world's newest and most advanced passenger aircraft - the Boeing 787 Dreamliner this year.

 

Source: http://biz.thestar.com.my/news/story.asp?file=/2011/7/15/business/9104967&sec=business

[Mohd Azizul Ramli 2]

Wow, fast response by ANA to JAL's JV with Jetstar.

[Mushrif A 3]

Congratulations to AK group. Now surely those 300+ 320neos will have homes.

[flee 5]

Not sure if this involves Peach. Perhaps, AK is going in to provide the aircraft for this new LCC. But Peach is already a JV and AK going in will dilute everyone's shareholdings.

 

Lets wait for the official announcements.

[Christopher Lim 0]

Not sure if this involves Peach. Perhaps, AK is going in to provide the aircraft for this new LCC. But Peach is already a JV and AK going in will dilute everyone's shareholdings.

 

Lets wait for the official announcements.

 

AirAsia should go into China and India respectively. Those are huge growth regions. The Japan market is already so saturated.

[alberttky 0]

It'll be great to see some Japanese cabin attendants in AA uniforms.

[flee 5]

AirAsia should go into China and India respectively. Those are huge growth regions. The Japan market is already so saturated.

I am sure they are looking at those too. However business wise, it is not so simple. India and China is full of red tape, corruption and govt. approvals to negotiate. Just like they have found out in Vietnam, it can take time to complete all the approvals.

 

Even Japan is fraught with problems - D7 has already had many stalled negotiations with Japanese airport authorities in the past before Haneda came up with something that they could work with. Hopefully now the Japanese authorities are more in tune with the requirements of LCCs.

[Mohd Azizul Ramli 2]

From the AK Gossip Division:

 

Tony is in Japan currently for this tie-up meeting. Nothing is firm yet.

[flee 5]

Official Announcement in Bursa Malaysia:

 

AirAsia Japan Joint Venture

Date: 21st July 2011

 

AirAsia Berhad (“AirAsia” or “the Company”) is pleased to announce that the Company will today be executing a Shareholders Agreement (“the Agreement”) with All Nippon Airways Co., Ltd (“ANA”) of Japan.

 

The Agreement is formalised for the purpose of forging a joint venture cooperation between AirAsia and ANA to establish a low cost airline in Japan based on the successful AirAsia business model (“the Joint Venture”). The company to be incorporated in Japan for the Joint Venture is named AirAsia Japan Co., Ltd. (“AirAsia Japan”).

 

1. The rationale and prospects of the Joint Venture:

 

The Low Cost Carrier (“LCC”) business model practiced by AirAsia enables the airline to offer affordable fares to passengers. The business model keeps operating costs low by encouraging travelers to make Internet bookings where its lowest fares are offered. Overall operating efficiency further enhances the affordability of the LCC model.

 

The presence of AirAsia Japan is to serve the highly lucrative travel market in Japan. Air travel is deeply entrenched in the social and business life of the Japanese even under high cost environment. Both ANA and AirAsia firmly believe that AirAsia Japan will be a success as theJapanese market possesses the necessary ingredients for growth such as the population’s strong propensity to travel, its high per capita income coupled with deep and significant internet penetration.

 

The AirAsia Brand is already accepted in the Japanese market and it has been further enhanced since AirAsia X Sdn Bhd had been flying to Japan from early this year.

 

Upon commencement of operations AirAsia Japan will serve the Japanese domestic market and the North East Asia countries such as South Korea, Taiwan and China. AirAsia Japan will also be able to connect to the extensive ASEAN market through existing AirAsia route network operated by the AirAsia group.

 

AirAsia and ANA are optimistic that the LCC market which is currently underserved in Japan will be as well received in Japan as has been is in ASEAN.

 

The rationale for the Joint Venture is therefore to bring low cost airline travel to Japan to make it affordable to the average Japanese national to travel both domestically and regionally. The low cost airline will also help stimulate greater access to Japan through its affordable fares which in turn will help the economic growth of the country as evidenced in other regions where AirAsia is currently serving.

 

2. Feasibility Study

 

AirAsia has conducted a feasibility study prior to entering into the Joint Venture and based on the study AirAsia is confident that the Joint Venture will further strengthen AirAsia’s distribution capacity across its existing network.

 

The Joint Venture will leverage on AirAsia’s experience and by replicating its low cost business model it will be able to offer truly affordable travel to serve the markets of Japan and North East Asia countries.

 

AirAsia’s study forecasts that the JV will be operationally feasible and commercially viable, and is expected to contribute positively to AirAsia’s financials both directly and indirectly in the future.

 

3. Salient terms of the Agreement:

 

a. In compliance with Japanese Aviation laws on foreign shareholding AirAsia will hold a 33% voting shares and 16% non-voting shares in AirAsia Japan through its wholly owned subsidiary AA International Ltd (“AAIL”) while ANA will hold the balance 51%.

 

b. Under a Brand License Agreement to be signed together with the Agreement, AirAsia grants the rights for the use of the AirAsia brand to AirAsia Japan.

 

c. The initial base of AirAsia Japan will be Terminal 2 of Narita International Airport whereas ANA will operate from Terminal 1. Under the Joint Venture AirAsia will provide echnical, operational and commercial support on an arms length basis to AirAsia Japan to ensure commercial, operational, branding and service level uniformity throughout existing AirAsia’s operations.

 

d. Both parties agree to provide a covenant not to compete against AirAsia Japan save for an airline known as Peach Aviation Limited (“Peach”) which is an existing low cost carrier subsidiary of ANA. However the parties agree that Peach is subject to a non-competition provision whereby Peach is not permitted to locate its base at the Narita International Airport

 

e. AirAsia Japan shall apply for the Air Operators Certificate (“AOC”) from Japan Civil Aviation Bureau (“JCAB”) to operate aircraft in its fleet.

 

The Agreement contains terms which are common to agreements between shareholders such as reserved matters, board composition, deadlock events, termination and so forth.

 

4. Capital Injection

 

The Joint Venture will require an initial capitalization of Japanese Yen 1 billion of the authorised capital of Japanese Yen 5 billion and the Joint Venture will be further capitalised gradually over time as the board of AirAsia Japan may in its discretion decide.

 

AirAsia will raise internal funding for its portion of the equity.

 

5. Financial Impact

 

It is forecast that the Joint Venture will not make any material contribution in the short term however will contribute positively in the long-term.

 

6. Risk Factors

 

The parties have considered the risk factors relating to the Joint Venture which are as follows:

 

a. ANA has an existing LCC known as Peach which operates from Kansai International Airport. The Agreement however provides for non-competition between Peach and AirAsia Japan whereby Peach is not permitted to locate its base at the Narita International Airport;

 

b. There are 20 active commercial airlines currently operating in Japan where a number are low fare carriers which may give a stiff competition on pricing to AirAsia Japan; and

 

c. Natural disasters: Geographically Japan is prone to natural disasters in particular earthquakes which may adversely affect air travel.

 

7. Commencement of Operations

 

Subject to obtaining the relevant regulatory approvals, the Joint Venture is expected to commence operations in August 2012. The Shareholders shall undertake various steps to ensure that all operational, engineering, commercial and administrative aspects of the Joint Venture are in place and ready for the launch.

 

8. Approvals

 

The Joint Venture is not subject to the approval of the Company’s shareholders. It is however subject to the approval of the relevant government authorities in Japan for the AOC.

 

9. Directors and Major Shareholders’ Interests

 

None of the directors and/or major shareholders of the Company and persons connected to them, insofar as the existing directors and major shareholders are able to ascertain and are aware, has any interest, direct or indirect in the above-mentioned Joint Venture.

 

10. Brief Information on ANA

 

ANA is the eight largest airline in the world by revenue and the largest in Japan by passengers numbers. Founded in 1952, it flies today to 76 domestic and international cities in a fleet of 228 aircraft serving a network of 164 routes. ANA has 33,000 employees and operates more than 1,000 flights a day. In 2009 it carried 44 million passengers and generated revenues of USD$13.7 billion. ANA has been a core member of Star Alliance since 1999 and more than 20 million members belong to its Frequent Flyer Program (ANA mileage Club).

 

ANA returned to profit in 2010 with USD$280 million from the 2009 Net Loss of USD$689 million after recovering from the global recession and implementing tight cost control and introducing new services and higher capacity.

 

11. Documents available for inspection

 

The Agreement and Brand License Agreement are available for inspection at the registered office of the Company at 25-5, Block H, Jalan PJU 1/37, Dataran Prima, 47301 Petaling Jaya, Selangor Darul Ehsan, Malaysia during normal business hours from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.

 

This announcement is dated 21st July 2011.

 

 

 

Does this mean that AirAsia X will serve Narita as well as Haneda or will it move all flghts from Haneda to Narita?

[flee 5]

My question has been answered by Azran, D7's CEO:

Although AirAsia Japan will operate from Narita from next year, AirAsia X will continue to fly into Haneda for the foreseeable future

[flee 5]

ANA's joint venture with AirAsia 'most efficient option'

 

Japan's All Nippon Airways (ANA) says that its joint venture with AirAsia offers the "most efficient" option for the start-up of a low-cost airline based in Tokyo's Narita International Airport.

 

AirAsia Japan, which aims to begin operations in August 2012, will be 51% owned by ANA. It will be the first low-cost carrier to be based in Narita, the airlines said in a statement.

 

Recent developments such as open skies agreements and increased competition from road and rail-based travel have led to the "rapid transformation" of the Japanese airline market, said ANA.

 

In addition, Narita aims to increase its capacity with a new terminal that should attract low-cost carriers and foreign airlines, added the Star Alliance carrier.

 

"ANA concluded that partnering with an existing low-cost carrier is the most efficient and strategically advantageous option," said the airline.

 

AirAsia Japan leverages on AirAsia's successful business model and brings together the complementary strengths of the two companies, it added.

 

"We believe that AirAsia Japan will make air travel more accessible and provide a convenient and efficient travel option for a wide range of people," said Shinichiro Ito, president and CEO of ANA.

 

AirAsia will own 33% voting shares in the joint venture and 16% non-voting shares through its wholly owned subsidiary AA International. AirAsia has been seeking a business partner with strong Japanese market influence to expand its network for some time, said the Malaysian carrier.

 

"AirAsia Japan will be a success as the Japanese market possesses the necessary ingredients for growth, such as the population's strong propensity to travel, its high per capita income, coupled with deep and significant internet penetration," said AirAsia.

 

The joint venture helps the company to penetrate Japan's "highly lucrative domestic travel market", it added.

 

"This new joint venture is an important milestone in AirAsia's growth as ANA is the very first airline partner to form a joint venture with AirAsia," said Tony Fernandes, group CEO of AirAsia.

 

AirAsia has announced plans to set up joint ventures in the Philippines and Vietnam, where services are expected to begin at the end of the year.

 

Source: http://www.flightglobal.com/articles/2011/07/21/359767/anas-joint-venture-with-airasia-most-efficient-option.html

[flee 5]

Detailed report and analysia by CAPA: http://www.centreforaviation.com/news/2011/07/21/airasia-and-ana-join-hands-to-create-tokyo-narita-based-lcc/page1

[Kris Kim 0]

Wow! AirAsia is pretty much dominating Asia!

 

: AirAsia Malaysia

: AirAsia X

: Thai AirAsia

: Indonesia AirAsia

 

New Ventures

: VietJet AirAsia

: AirAsia Phillipines

: AirAsia Japan

 

Although I'm getting very worried about VietJet AirAsia, I feel that it's stupid for a government to block foreign brands in operating. How is the name Jetstar to Australian? I wonder what excuse they are going to come up with for VietJet AirAsia!

[Sharil Abdul Rahman 0]

My question is - will this be the start for Airasia's reach to the US?

While they may want to tap the domestic market (which is big - i mean, where else you get 747s as *domestic* planes?*, will this be the literall stepping stone to the US?

Will then be a move from haneda to narita for airasia X?

[BC Tam 2]

Will then be a move from haneda to narita for airasia X?

Please refer post #10 by flee above

[flee 5]

In a related development, Business Times reports:

AirAsia X has obtained landing rights to Osaka and an announcement is expected to be made on August 10 this year.

 

It currently flies into Haneda Airport in Tokyo.

 

AirAsia X does not discount the possibility that it could also fly into Narita and eventually feed in traffic to the newly-formed AirAsia Japan.

 

It is also hoping to obtain landing rights for Nagoya and Fukuoka.

[flee 5]

will this be the literall stepping stone to the US?

AirAsia X has said that they have no plans to enter the US market for the next two or three years. I think that they really want to wait till the A350s arrive so that they can have a cost competitive product to offer.

 

However, AirAsia Japan might be able to offer US services by leasing one or two of ANA's B787s. Now, that is a mouth watering thought!

[flee 5]

Analysts Upeat On AirAsia's Venture Into Japan's High Yield LCC Market

 

KUALA LUMPUR, July 22 (Bernama) -- Local analysts are highly positive of AirAsia Bhd's venture into Japan despite the high cost involved, saying that the market for low cost carrier (LCC) there was underpenetrated and yields could be 172 per cent higher.

 

AirAsia and Japan's Air Nippon Airways (ANA) announced yesterday that they will tean up to form a new low cost carrier, AirAsia Japan Co Ltd, with the former having a 49 per cent stake.

 

The cost synergies from Japan's largest airline, ANA and the leveraging on AirAsia's cost base in Malaysia will cushion the higher cost of aircraft landing and parking, said OSK Research.

 

Operating profit margins are expected to be lower but still respectable as breakeven load factor of operating a low cost carrier Japan is only two per centage points higher at a load factor of 72 per cent.

 

"Given the low penetration of Japan's under-penetrated market for low cost travel of nine per cent, we think AirAsia Japan's load factor could easily average 80 per cent," said the research house in its note today.

 

OSK said this was a big leap for AirAsia in flying beyond the confines of its regional hubs in South-East Asia and transforming into one of the world's biggest LCCs by 2020.

 

"Further liberalisation of Japan's air landing rights will be positive for further route expansion," it said.

 

Echoing similar positive tone, CIMB Research also pointed out that past constraints on LCC expansion in Japan stemming from government policies to protect Japan Airlines (JAL) and access restrictions to slots at Tokyo's two airports have been or will be dismantled.

 

"The glut of pilots in Japan arising from JAL's restructuring and aggressive route cuts will also free up manpower resources for the newcomers."

 

Meanwhile, ANA will benefit from AirAsia's substantial experience in marketing and operating a low cost airline business, and also AirAsia's massive order book of 86 undelivered A320s and the recent order for 200 A320neos.

 

OSK retained its fair value for AirAsia share at RM4.34, while CIMB increased its target price to RM4.70 from RM4.20, previously.

[Mike P 0]

Very ambitious! Good!

[alberttky 0]

PETALING JAYA: AirAsia Bhd boss Tan Sri Tony Fernandes is unperturbed by Jetstar's entry into Japan's domestic market to rival AirAsia Japan as he feels the market is big enough for all players.

 

“No issue, the market is huge but Jetstar has many things to sort out in Asia, so it will be stretched,” Fernandes said.

 

The Centre for Asia Pacific Aviation (CAPA) said in a report that low-cost carriers (LCCs) still only operates around 2.7% of the 3,000 weekly international services to and from Japan currently.

 

It said LCC penetration within Japan was low at 9.1% but still higher than 6.8% for intra North Asia, which includes South Korea, Hong Kong, Macau and Taiwan.

 

“The new LCCs will only enter progressively but just the knowledge that they are on the way will dramatically shift the very cautious mindset that has kept Japan's aviation system the most expensive and under-exploited in the world,” it said, adding that the “sky is the limit for growth upsides.”

 

Jetstar on Tuesday announced plans to set up Jetstar Japan with partners Japan Airlines Corp and Mitsubishi Corp. Jetstar Japan will fly from Narita airport, the same terminal as AirAsia Japan, with the latter starting operations in August and the former in December 2012.

 

Jetstar group chief executive officer Bruce Buchanan remains bullish about the prospects and said earlier that the carrier did not see any problems in filling its 24 aircraft as Japan was an underserved market.

 

Jetstar's announcement comes hot on the heels of AirAsia's partnership in July with Japan's largest carrier, All Nippon Airways (ANA). The pact is split 49% for AirAsia in terms of revenue and 33% in terms of voting rights.

 

Separately, ANA has another LCC, Peach Aviation, which will compete head on with Jetstar Japan and AirAsia Japan. Peach takes off in March from Kansai airport.

 

“The propensity to travel among the Japanese is high compared with many other countries even though the rising affluence in countries like India and China has swelled on a scale never seen before. That also explains why Asia is the next growth area and why airlines are trying to establish bases beyond their own markets,” said an analyst.

 

Though the market may be ripe for the taking, analysts believe that most Japanese have not fully warmed up to the idea of LCCs, despite Skymark Airlines the first airline to offer lower prices in the late 1990s and eight other LCCs flying to Japan.

 

AirAsia X CEO Azran Osman-Rani has a contrarian view. He said that before the recent earthquake in Japan, AirAsia X enjoyed passenger load factors of over 80% for its KL-Tokyo flight. During the earthquake, demand did plummet but the recovery afterwards has been strong and, in August, loads have reached 86%.

 

“A lot more people are Internet-savvy and more than happy to buy tickets online. There is a mix of consumers that still preferred packages and those who want to just purchase air tickets. The landscape is definitely changing,” Azran said.

 

With three players emerging next year and the potential of a fourth coming, will the market get crowded and challenging despite bullish growth prospects?

 

“No challenge, it is such a great market and growth will come from the 126 million Japanese who found it too expensive to fly. The market is five times bigger than Malaysia,” Fernandes said, asking whether “Jetstar had in seven years in Asia slowed AirAsia down?”

 

Operating in Japan could also be challenging, said a Maybank IB Research analyst. He pointed out that airport charges were among the highest in Asia and the airports were not so LCC friendly and that made it tough for LCCs that needed quick turnaround time.

 

Fernandes does not see this as a problem. “It (Narita International) is building a low-cost carrier terminal (LCCT) for us as the market is massive.” Both AirAsia Japan and Jetstar Japan have plans to fly to cities in North Asia from Japan but that will come later.

 

Separately, Fernandes twittered that AirAsia would soon announce a route to Manila and two new destinations in China. He said the airline needed more aircraft each year and he was meeting up with Airbus officials today.

 

“We need to lease more or buy classic A320s ... we are hoping to get LCCT in Penang or northern region and Langkawi.”

 

http://biz.thestar.com.my/news/story.asp?file=/2011/8/18/business/9320844&sec=business

[alberttky 0]

ANA applies for registration of AirAsia Japan

 

TOKYO - All Nippon Airways Co., Ltd. (“ANA”) today applied to the Legal Affairs Bureau of Japan to establish its joint venture with AirAsia to form a Low Cost Carrier based at Japan’s Narita Airport.

 

The newly established joint venture company, AirAsia Japan Co., Ltd., will apply for an Air Operator’s Certificate with the aim of beginning low-cost operations from August next year.

 

ANA will initially pay ¥10 million of capital into the new airline, with investment rising to a maximum of ¥5 billion, and will have a shareholding of 51 per cent in the joint venture company including non-voting stock (67 per cent on an investment ratio basis).

 

The chief executive of AirAsia Japan will be Kazuyuki Iwakata.

 

http://www.just4airlines.com/j4_dox/email/rss.mv?story_id=52869

[Mike P 0]

AirAsia Japan to add long-haul flights in 2013

 

Read more: AirAsia Japan to add long-haul flights in 2013 http://www.btimes.com.my/articles/20111102093347/Article/#ixzz1cX79FTBg

 

 

AirAsia Japan Co, the start-up airline backed by the region’s biggest low-cost carrier, will add long-distance flights in 2013 as it seeks to lure holidaymakers and budget travelers with cheap flights.

 

The airline may offer services to Thailand, Indonesia and Singapore after introducing widebody Airbus SAS A330 planes, Chief Executive Officer Kazuyuki Iwakata said in interview yesterday. The company will begin short-haul routes from Tokyo’s Narita airport in August with single-aisle A320s.

 

AirAsia Japan may order the A330s with part-owner AirAsia Bhd. to help win lower prices, Iwakata said without elaboration. The Japanese carrier is also counting on AirAsia’s regionwide operations and marketing to help it carry 10 million passengers annually within five years.

 

“We don’t view our competitors as ANA and JAL as much as resorts such as Tokyo Disney Resort,” Iwakata said, referring to full-service carriers All Nippon Airways Co and Japan Airlines Co. “We’re aiming at families who want to enjoy the weekend or people who play Pachinko -- we want them to be able to think about taking a flight as easily as they would hop on a bus.”

 

The new airline, part-owned by ANA, intends to lure passengers with fares as much as two-thirds cheaper than traditional carriers. It will compete with Skymark Airlines Inc, Japan’s biggest budget carrier, and Jetstar Japan, a low- cost venture being set up by JAL and Qantas Airways Ltd.’s budget unit. ANA is also backing Peach Aviation Ltd, another planned no-frills carrier that will serve western Japan.

 

Separately, Singapore Airlines Ltd also yesterday detailed plans for a new long-haul discount carrier, Scoot, which will begin flights next year. -- Bloomberg

 

Read more: AirAsia Japan to add long-haul flights in 2013 http://www.btimes.com.my/articles/20111102093347/Article/#ixzz1cX734EHj

Edited November 2, 2011 by Mike P

[flee 5]

ANA-affiliated budget carrier eyes 3 domestic routes from Aug. 2012

 

TOKYO (Kyodo) -- AirAsia Japan Co., a budget airline owned partially by All Nippon Airways Co., said it plans to begin flights next August on three domestic routes from Narita International Airport near Tokyo, and two international routes to South Korea two months later.

 

"We look forward to expanding our network to serve more guests in due course," AirAsia Japan President Kazuyuki Iwakata said in a statement after the low-cost carrier applied to the transport ministry for an air operator business license.

 

Using Narita airport as its home base, the carrier said it plans to fly Airbus A320s to Sapporo, Fukuoka and Okinawa, as well as to South Korea's Incheon and Busan.

 

AirAsia Japan is a joint venture between ANA and Malaysia's AirAsia Bhd.

 

In July, Peach Aviation Ltd, another ANA-affiliated budget airline based at Kansai airport , was granted its business license and will begin serving the Osaka-Fukuoka and Osaka-Sapporo routes in March 2012, and from Osaka to Incheon near Seoul in May.

 

Jetstar Japan, a low-cost carrier partly owned by ANA's archrival Japan Airlines Corp., is also planning to launch operations next year.

 

Source

[flee 5]

AirAsia Japan plans to launch service in Aug-2012 with three domestic routes from Tokyo Narita, followed by two international routes to South Korea in Oct-2012.

 

The AirAsia-ANA JV LCC applied for operational permission with Japan’s Ministry of Land, Infrastructure, Transport & Tourism (MLIT) on 27-Oct-2011 seeking to commence operations in Aug-2012 with service from Tokyo Narita to Sapporo (New Chitose), Fukuoka and Okinawa (Naha). Busan and Seoul Incheon will follow in Oct-2012, according to the carrier’s application. "We look forward to expanding our network to serve more guests in due course," AirAsia Japan President Kazuyuki Iwakata said.

 

Of the AirAsia Japan launch routes, all are already served by at least two carriers. Aside from Busan, all of the launch routes are already served by ANA. The only route not already serviced by an LCC is Tokyo Narita-Fukuoka, although both the international/South Korean routes are only served by South Korean LCCs.

 

Looking further ahead and AirAsia Japan CEO Kazuyuki Iwakata, in an interview with Bloomberg on 02-Nov-2011, stated the LCC would add long-haul services in 2013. The airline may offer services to Thailand, Indonesia and Singapore after introducing A330 aircraft, the CEO said. AirAsia Japan may order the A330s with AirAsia to lower costs.

 

Full Report here

Edited November 7, 2011 by flee

[flee 5]

TF Tweets:

Airasia japan has recived its AOC. Big news. To Aoc means we now have a license to start airline operations. Very exciting. Great start to the year of the dragon.