AirAsia Japan to discontinue business on Nov 1
AirAsia has terminated its AirAsia Japan joint venture, effective on Nov 1, following challenges since its launch two years ago.
Issues 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.
In today's announcement, the Malaysia-based airline said that it has terminated the joint venture with ANA Holdings Inc.
AirAsia will sell the 49 per cent stake in the joint venture to ANA Holdings. The termination also involves the return of all AirAsia aircraft leased to AirAsia Japan by November 1, 2013.
AirAsia Japan will unwind the use of the AirAsia brand in its operations, including the name of AirAsia Japan itself by November 1. Operations of AirAsia Japan flights up to October 31 will continue as planned.
“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,” said AirAsia Group CEO Tony Fernandes.
AirAsia also announced that the operations of AirAsia X, the long haul low fare affiliate of AirAsia Group will not be interrupted as a part of this termination. AirAsia X will continue its operations into Japan including Kuala Lumpur to both Tokyo (Haneda) and Osaka (Kansai).
