ANA Holdings and AirAsia Berhad today signed an agreement to end their partnership in Air Asia Japan, a low cost carrier, after October 31 this year.
The joint venture started two years ago (see story here) and faced many challenges from the start. Air Asia Group wanted more services to Southeast Asian destinations while ANA preferred to focus on the Japanese market.
The termination comprises an acquisition of Air Asia’s entire shareholding in Air Asia Japan by ANA Holdings for JPY 2,450,000,000 ($US25 million). All Air Asia aircraft leased to Air Asia Japan shall be returned by November 1.
All Air Asia Japan flights up to October 31 will operate as normal. All the flights thereafter will be operated by an airline with a new name, to be decided in a month according to a source from ANA.
ANA also owns 38.67 per cent of another Japanese low-cost carrier, Peach Aviation, with the rest of the shares taken up by Hong Kong-based First Eastern Aviation Holdings (33.3 per cent) and Innovation Network Corporation of Japan (28 per cent).