ANA and the Hongkong-based First Eastern Investment Group are teaming up to establish a low-cost airline, believed to be the country’s first.
The new carrier will operate both international and domestic short-haul routes out of Kansai International Airport, Osaka. It will be run independently from ANA.
It is expected to offer deep discount fares, particularly in the domestic market, in an effort to compete with the bullet train services. It will also go against foreign budget airlines that are taking up newly opened slots in Narita and Haneda airports.
The new company will be set up shortly, with Japanese investors holding a 66.7 percent stake, of which ANA will hold a 39 percent stake and First Eastern will hold the remaining 33.3 percent stake, the maximum foreign ownership currently allowed for an airline in Japan.
Flights are expected to commence in the second half of 2011.
For more details, visit www.ana.jp.co
Margie T Logarta