ANA To Dissolve Joint Venture With Malaysia's AirAsia
ANA To Dissolve Joint Venture With Malaysia's AirAsia
Japan's ANA Holdings Inc plans to dissolve its struggling budget airline joint venture in the country with Malaysian low-cost carrier, AirAsia, Japan's Jiji Press reported, citing officials of the Japanese firm as saying on Monday.
ANA Holdings plan to reconstruct the operations of the joint venture, AirAsia Japan, by buying shares from the Malaysian low-cost airline and making it a wholly owned subsidiary, the officials said.
AirAsia Japan launched its operations in August 2012.
The seat occupancy rate for AirAsia Japan flights stood at slightly higher than 60 per cent as of the end of March this year, slipping below 70 per cent believed to be a break-even line.
ANA Holdings still believes that it is possible to turn around AirAsia Japan with the know-how of its group companies, the officials said.
The company has yet to determine the brand for the successor to AirAsia Japan.
ANA Holdings owns 51 per cent of AirAsia Japan, with the rest held by the Malaysian low-cost carrier.
AirAsia Japan operates five domestic flights and three international flights and plan to launch flights between Narita International Airport near Tokyo and Taipei on July 3.
Bersama 11/06/2013