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AirAsia Japan v2.0

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AirAsia Picks Partners for Second Crack at Japanese Airline



AirAsia Bhd. (AIRA), the region’s biggest budget carrier, has decided on partners and top executives for a new discount airline in Japan after ending its tie-up with ANA Holdings Inc. (9202) last year.



The co-investors include listed companies, Tony Fernandes, the Malaysian low-cost airline’s group chief executive officer, said in a telephone interview in Tokyo today, without naming them. Yoshinori Odagiri, formerly chief executive of AirAsia’s Japanese tie-up with ANA, will head the new carrier with Osamu Hata, previously a chief financial officer at Japan’s Dell unit, taking the top finance role, he said.


“We’ve gone with people we think are like-minded and bring strategic value,” said Fernandes, during a visit to Japan to meet them. “The timing is excellent for Japan with the new economic thinking.”



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AirAsia Japan likely to establish hub out of Nagoya

 

AirAsia Japan (JW, Nagoya Chu-bu) will likely to establish its main operational hub in the central Japanese city of Nagoya Chu-bu it has emerged. As previously reported, the AirAsia (AK, Kuala Lumpur Int'l) subsidiary is also considering setting up a base at Osaka Kansai though this has yet to be officially confirmed.
The original AirAsia Japan, a 49/51 joint venture between the Malaysian LCC and ANA - All Nippon Airways (NH, Tokyo Haneda), collapsed in June 2013 when the Japanese carrier acquired AirAsia's shareholding and proceeded to establish its own wholly-owned venture, Vanilla Air (JW, Tokyo Narita).

Source: http://www.ch-aviation.com/portal/news/28189-airasia-japan-likely-to-establish-hub-out-of-nagoya

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AirAsia Japan Mk II to be Japan’s fifth LCC since 2012. AirAsia enters better informed and prepared

 

AirAsia will re-enter Japan in 2015 more experienced about partnership and Japan market needs. The first AirAsia Japan has been a good learning trajectory and the lessons learned from working with majority owner All Nippon Airways have translated to a new partnership profile that avoids a Japan airline JV. AirAsia Japan Mk II – the country’s fifth LCC since 2012 – will have four local investors, with none holding a majority share – and who are more likely to be happy to go along with AirAsia’s low cost philosophy.
One investor, web travel giant Rakuten, establishes the intriguing scenario of entrepreneurs at AirAsia Japan and Skymark trying to take on the ANA and JAL establishment in Asia’s second-largest domestic market where fares are absurdly out of kilter with global practice. Hybrid and LCC penetration was approximately 19% in FY2013, but the new LCCs – with truly low cost bases – still had only a 13% share. There is room still for major change.
AirAsia Japan will re-enter probably to be based at Nagoya, which has no LCC competition (for now) and no curfew, unlike its former base of Tokyo Narita. AirAsia Japan will also be painfully aware of the importance of near-perfect punctuality in Japan and user-friendly website design, where it stumbled the first time around. It will follow a relatively modest time frame for establishment this time too, recognsing the quirky processes - formal and informal - that plague Japan's aviation administration. AirAsia and ANA (with Vanilla) are each reattempting an LCC. If allowed its head, the new AirAsia Japan holds considerable promise.
AirAsia Japan will launch in 2015 with Rakuten as headline investor
AirAsia Japan was formally announced on 02-Jul-2014 with a launch in mid-2015. Its initial capital is JPY7 billion (USD69 million), with CEO Yoshinori Odagiri, who was AirAsia Japan Mk I's second CEO. Mr Yoshinori replaced an executive from ANA with whom AirAsia did not see eye-to-eye.
AirAsia and its founder Tony Fernandes have learned from their mistake in AirAsia Japan Mk I, where they gave another airline a majority shareholding and a full service airline at that. Japan, like most other countries, makes domestic airlines subject to local majority ownership. AirAsia and Mr Fernandes have smartly constructed AirAsia Japan Mk II such that AirAsia Japan's majority local ownership (51%) will be split amongst five Japanese companies, ensuring AirAsia Group's minority 49% share is actually the single largest shareholding. Importantly too, each of the partners has the potential to bring something constructive and complementary to the table.
The investors are:
AirAsia Group: 49%
Octave Japan Infrastructure Fund: 19%
Rakuten: 18%
Noevir Holdings (conglomerate with an aircraft leasing business): 9%
Alpen (sports firm): 5%
Edited by flee

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AirAsia Japan will re-enter probably to be based at Nagoya, which has no LCC competition (for now) and no curfew, unlike its former base of Tokyo Narita. AirAsia Japan will also be painfully aware of the importance of near-perfect punctuality in Japan and user-friendly website design, where it stumbled the first time around. It will follow a relatively modest time frame for establishment this time too, recognsing the quirky processes - formal and informal - that plague Japan's aviation administration. AirAsia and ANA (with Vanilla) are each reattempting an LCC. If allowed its head, the new AirAsia Japan holds considerable promise.

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AirAsia Japan denies, but doesn't reject, Skymark tie-up rumours

 

According to the ZipanguFlyer blog, AirAsia Japan's interest in Skymark could centre on its coveted Tokyo Haneda rights for which it currently has 36 slot pairings. Haneda slots are highly sought after by local and international carriers alike given its closer proximity to downtown Tokyo as compared to Tokyo Narita.

 

 


More: http://www.ch-aviation.com/portal/news/30304-airasia-japan-denies-but-doesnt-reject-skymark-tie-up-rumours

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AirAsia Berhad Subscription for shares in AirAsia Japan Co., Ltd by AirAsia Investment Ltd


1. INTRODUCTION

Further to the announcement dated 1 July 2014 in relation to a joint venture between AirAsia Berhad ("AirAsia" or the Company"), Octave Japan Infrastructure Fund I GK, Rakuten Inc., Noevir Holdings Co. Ltd. and Alpen Co. Ltd., the Company is pleased to announce that it has today through its wholly-owned subsidiary, AirAsia Investment Ltd, completed the subscription of two (2) classes of shares as follow:


(i) 3,174,927 shares of common stock; and


(ii) 3,825,073 shares of non-voting convertible stock,


at JPY70 per share in AirAsia Japan Co., Ltd (“AirAsia Japan”) at the total price of JPY490,000,000.


2. INFORMATION ON AIRASIA JAPAN

AirAsia Japan is a company incorporated under the laws of Japan, having its principal office at 1-4-3 Shiba, Minato-ku, Tokyo, Japan. AirAsia Japan is formed for the purposes of obtaining an Air Operator’s Certificate to operate a low-cost aviation business in Japan.


3. FINANCIAL EFFECTS OF THE SUBSCRIPTION

The subscription is not expected to have any material effect on the earnings and net tangible assets of the AirAsia group for the financial year ending 31 December 2014. The joint venture is expected to contribute positively to the future profitability of AirAsia.


4. DIRECTOR'S AND/OR SUBSTANTIAL SHAREHOLDERS' AND/OR PERSONS CONNECTED WITH DIRECTORS’ OR SUBSTANTIAL SHAREHOLDERS' INTEREST

To the best of the knowledge of the Company, none of the Directors or Substantial Shareholders of the Company and/or persons connected to them has any interest, directly or indirectly, in the above subscription.



This announcement is dated 18 July 2014.

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AirAsia Japan picks Centrair as main hub

 

The new Japanese unit of Malaysian low-cost carrier AirAsia plans to pick Central Japan International Airport (Centrair) in Aichi Prefecture as its main hub, AirAsia Japan President Yoshinori Odagiri said in a recent interview.
The unit, retaining the name AirAsia Japan, was set up recently to resume Japanese services in 2015 with two airplanes.

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Stolen from GBKM:

 

AirAsia dismisses report on takeover of Japanese airline

Tourism - More Malaysians holidaying in Japan

Airasia's rumoured takeover of Skymark has been going around. But personally, I don't think AK is in a rush to establish a strong foothold in Japan since it knows the market well from its failed JV before. Skymark made a headline recently when Airbus cancelled its purchase of A380s due to credit related reasons. For Japan, I think AK would prefer an organic growth. It is good for AK to keep an eye of Skymark and establish some relationships so that it can peek into its books and confidential data before making a decision.

AK did a buyout or an attempted buyout in the past to shortcut its presence in a new market. Zest Air of the Philippines was acquired and merged with Philippines AirAsia thus becomming AirAsia Zest as of current. A landmark failed deal was marked with an attempt to buyout Batavia Air in Indonesia. The failure resulted in the demise of Batavia Air.

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^^ Aren't both Philippines AirAsia and AirAsia Zest still 2 different companies? the only difference is that Philippines AirAsia own some shares in Zest - they still have separate AOC and dedicated fleet.

 

I would really like to see a non-red AirAsia, Vina AirAsia was suppose to be blue right? That would of looked really unique, those Vina AirAsia girls in their blue uniform walking with their AirAsia counterparts wearing the Red uniform would of been a sight.

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AOCs are precious commodity. Havent heard from Cool Red for a long time. Zest is predominant callsign for Zest AirAsia Philippines now. I think they are maintaining two separate AOCs so that in the future Cool Red will be Philippines Air Asia X

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AOCs are precious commodity. Havent heard from Cool Red for a long time. Zest is predominant callsign for Zest AirAsia Philippines now. I think they are maintaining two separate AOCs so that in the future Cool Red will be Philippines Air Asia X

Yes, that was what I thought too - it would be easier to keep the two AOCs and convert one to Airasia X Philippines if required. Airasia Philippines have two aircraft, the rest of their fleet are Zest Air legacy aircraft. They plan to retire 8 of those aircraft later this year and downsize Airasia Zest to 11 aircraft by the end of 2014.

 

As for Airasia Japan, they are planning to start with 3 aircraft next year. Lets see how this latest venture pans out...

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AirAsia Japan commences certification drive

 

The start-up will take delivery of its first of ten A320-200 (sl)s on order from Airbus Industrie (AIB, Toulouse Blagnac) later this month - JA01DJ (cn 6676) - with the second - JA02DJ - due in August. By the end of 2016, the LCC plans to operate a fleet of six A320-200s adding five each year through 2018 when it expects to operate a total of sixteen twinjets.

 

Full report: http://www.ch-aviation.com/portal/news/38987-airasia-japan-commences-certification-drive

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AirAsia Japan to be the 5th LCC in 5 years for Japan. Opportunities for all, despite slowing growth

 

AirAsia Japan has submitted to Tokyo an application for an Air Operator's Certificate to re-enter the Japanese LCC market, its first JV having collapsed in 2013. AirAsia Japan envisions a Mar/Apr-2016 launch from Nagoya, an airport without the heavy competition or curfew AirAsia Japan Mk I encountered at its previous base of Tokyo Narita.
The start-up plans to complete 2016 with six A320s and grow by five aircraft each additional year. In Jul-2015, Jetstar Japan operates 20 A320s, the most of any new LCC, followed by Peach with 16 A320s. AirAsia Japan will be out to show it has learned from past mistakes and can apply its pan-Asian model, with some localisation, in multiple markets.
Japan continues to benefit from this influx of carriers. Domestic growth has slowed to 2%, but Japan saw 92m domestic passengers in its latest reporting year, the highest since 2007. AirAsia Japan will be unique along with Spring Airlines Japan for not being affiliated with ANA or JAL, which directly account for 79% of the market and indirectly for over 90%. Slowing domestic growth has however come with faster 9% outbound international growth. 1H2015 inbound tourism is up a remarkable 46% and Japan will need to set more ambitious targets than 20m visitors in 2020. 2015 could welcome 18 million visitors, up from 10 million in only 2013.

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The issue with Japan is it is heavily regulated by Japan government and heavily dominated by ANA and JAL.

 

Most of the smaller airlines are linked to ANA and JAL in one way or other. Jetstar Japan has cooperation with JAL.

 

AirAsia Japan would have to be quite conservative in their business plan.

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Now AirAsia can fly again in Japan

 

KUALA LUMPUR: AirAsia Japan Co Ltd, which recently reorganised its shareholding structure, has received the air operator’s certificate from the Ministry of Land, Infrastructure, Transport and Tourism.
AirAsia said in a statement that AirAsia Japan was scheduled to begin operations from its base at Chubu Centrair International Airport in Aichi prefecture to Shin-Chitose Airport in Sapporo, Sendai Airport in Sendai and Taiwan Taoyuan International Airport in Taipei in spring 2016.
AirAsia group CEO Tan Sri Tony Fernandes said: “We are very excited to be back in Japan. We have fantastic partners here and we are united in the vision to change the way people travel in Japan.
“Centrair Airport is a fantastic base and with our new routes, we look forward not only to enable the Japanese to enjoy our direct destinations but to connect them to the rest of Asia and beyond on our extensive network.”
AirAsia first tried to enter the Japanese market by collaboratng with All Nippon Airways Co Ltd (ANA) in July 2011, but AirAsia withdrew from the joint venture in June 2013 due to “different management styles”.

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All the best to new AirAsia Japan! Second attempt maybe a charm, now that they have Rakuten on-board.

 

IMO, 20 aircraft in 4 years is a bit too optimistic. What happened in India and Jetstar Japan should be a learning lesson.

 

By the way, have they been allocated a IATA code? The first A320SL has been registered as JA01DJ. Taking over "DJ" code from Virgin Blue??

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By the way, have they been allocated a IATA code? The first A320SL has been registered as JA01DJ. Taking over "DJ" code from Virgin Blue??

I think they are still using their old codes from 2011.

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Former Skymark Airlines chairman becomes AirAsia Japan president

 

KUALA LUMPUR: AirAsia Japan has appointed Takashi Ide, the former chairman of Japan’s first low-cost carrier Skymark Airlines, as representative director and president.
AirAsia said in a statement that the board of the newly relaunched Japan operation had also appointed Osamu Hata as chief executive officer and Masakazu Arimori as chief financial officer.

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