AirAsia Japan Terminates JV With ANA
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AirAsia Japan Terminates JV With ANA
AirAsia Bhd has terminated its joint-venture with ANA Holdings Inc., which together operated the loss-making AirAsia Japan.
The budget carrier operator today entered into an agreement on share transfer and termination of agreements, with ANA (formerly known as All Nippon Airways Co Ltd).
In a filing to Bursa Malaysia today, AirAsia said the major factors for termination included cost management issues and inability of AirAsia Japan's management team, predominantly comprising ANA staff, to cultivate a culture that embraced the low cost business model.
"The joint venture has faced several challenges due to a difference in opinion of managing the joint-venture company between the shareholders," the low-cost carrier said.
Up to March 31, 2013, AirAsia Japan recorded an accumulated net loss of RM163.94 million.
AirAsia said ANA had offered to purchase the shares from AirAsia Investment Ltd and the parties have entered into negotiations to terminate the joint venture relationship through the termination agreement.
"ANA shall acquire the shares for 2.45 billion yen (about RM80.475 million) and the effective date for the payment of consideration sum and the transfer of the shares is June 28, 2013.
"The joint-venture company shall also discontinue using the AirAsia brand including changing the company's name with effect from Nov 1, 2013.
"The parties have agreed on a scheduled re-delivery of all aircraft leased to AirAsia Japan commencing Sept 1 to Nov 1, 2013," AirAsia said.
It added that all monies accrued in respect of the leased aircraft including rentals, maintenance reserves and all other payments related to the aircraft during the lease period to the date of redelivery, shall remain liabilities of the joint-venture and would be paid to the relevant lessor at redelivery.
The termination, upon the share buy-outs, was expected to be effective June 28, 2013.
AirAsia and ANA entered into a shareholders agreement in July 2011, with a total issued and paid-up share capital in AirAsia Japan amounting to RM163.9 million (5 billion Japanese Yen).
AirAsia, through its wholly-owned unit, AirAsia Investment, had subscribed 25,120 voting shares and 23,880 non-voting shares, representing 49 per cent of the paid-up share capital in AirAsia Japan.
Bersama 25/06/2013
The budget carrier operator today entered into an agreement on share transfer and termination of agreements, with ANA (formerly known as All Nippon Airways Co Ltd).
In a filing to Bursa Malaysia today, AirAsia said the major factors for termination included cost management issues and inability of AirAsia Japan's management team, predominantly comprising ANA staff, to cultivate a culture that embraced the low cost business model.
"The joint venture has faced several challenges due to a difference in opinion of managing the joint-venture company between the shareholders," the low-cost carrier said.
Up to March 31, 2013, AirAsia Japan recorded an accumulated net loss of RM163.94 million.
AirAsia said ANA had offered to purchase the shares from AirAsia Investment Ltd and the parties have entered into negotiations to terminate the joint venture relationship through the termination agreement.
"ANA shall acquire the shares for 2.45 billion yen (about RM80.475 million) and the effective date for the payment of consideration sum and the transfer of the shares is June 28, 2013.
"The joint-venture company shall also discontinue using the AirAsia brand including changing the company's name with effect from Nov 1, 2013.
"The parties have agreed on a scheduled re-delivery of all aircraft leased to AirAsia Japan commencing Sept 1 to Nov 1, 2013," AirAsia said.
It added that all monies accrued in respect of the leased aircraft including rentals, maintenance reserves and all other payments related to the aircraft during the lease period to the date of redelivery, shall remain liabilities of the joint-venture and would be paid to the relevant lessor at redelivery.
The termination, upon the share buy-outs, was expected to be effective June 28, 2013.
AirAsia and ANA entered into a shareholders agreement in July 2011, with a total issued and paid-up share capital in AirAsia Japan amounting to RM163.9 million (5 billion Japanese Yen).
AirAsia, through its wholly-owned unit, AirAsia Investment, had subscribed 25,120 voting shares and 23,880 non-voting shares, representing 49 per cent of the paid-up share capital in AirAsia Japan.
Bersama 25/06/2013
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inability of AirAsia Japan's management team, predominantly comprising ANA staff, to cultivate a culture that embraced the low cost business model.
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my opinion is that what ANA cites as management disputes = a commentary on doing business with tony fernandes.... he is not exactly a personality the typical japanese executive wants to deal with
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Whilst TF may indeed not be the easiest to deal with he at least knows his subject - operating a LCC.
ANA only know one thing - how to operate a bloated, overstaffed, micromanaged, state subsidised bureaucratic monolith.
It beggars belief that TF would allow management control to be vested in ANA - but probably what he had to do to get in to the Japanese market - and he'/AirAsia have been bitten big time.
All ANA could bring was "that's how we've always done it" and when any disputes may have arisen no doubt used the time honoured Japanese way to resolve any issue:
"...I'm older than you, I'm Japanese - so f**k off...."
of course delivered in more polite language and accompanied by a slight bow - which then makes it all OK!
When/if an account is ever written of the JAL invasion, if honest, it will recall how ALL the smaller carriers were adversely affected whether in operating costs, standards, variation from established airline and manufacturer SOP's, operational environment and other aspects.
I have no doubt ANA brought a similar "skill" set to AirAsia Japan.
ANA only know one thing - how to operate a bloated, overstaffed, micromanaged, state subsidised bureaucratic monolith.
It beggars belief that TF would allow management control to be vested in ANA - but probably what he had to do to get in to the Japanese market - and he'/AirAsia have been bitten big time.
All ANA could bring was "that's how we've always done it" and when any disputes may have arisen no doubt used the time honoured Japanese way to resolve any issue:
"...I'm older than you, I'm Japanese - so f**k off...."
of course delivered in more polite language and accompanied by a slight bow - which then makes it all OK!
When/if an account is ever written of the JAL invasion, if honest, it will recall how ALL the smaller carriers were adversely affected whether in operating costs, standards, variation from established airline and manufacturer SOP's, operational environment and other aspects.
I have no doubt ANA brought a similar "skill" set to AirAsia Japan.
Maybe so but TF is also arrogant and no doubt just thought he would stride in there as usual and walk on water. Only need to look at the muck up's in QPR to know that. Of course none of it was his fault,
Last edited by kwaiyai; 29th Jun 2013 at 03:43.
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AirAsia squeezed at home by perky new budget carrier
AirAsia squeezed at home by perky new budget carrier
Malaysia's AirAsia Bhd, which has dominated budget air travel in Asia with explosive growth over the past decade, faces serious competition at home just as it tries to scale up operations in the region.
Malindo Airways, an affiliate of fast-growing Indonesian budget carrier Lion Air, began operating in Malaysia two months ago, offering competitive fares on lucrative routes.
Malindo is also luring travellers with perks such as free snacks, a booked luggage allowance and enlarged seats.
The new player's entry has since sparked a price war.
Median prices for the routes from Kuala Lumpur to the Borneo island hubs of Kota Kinabalu and Kuching fell between March and May by 12.6 percent and 18.6 percent respectively, data from travel website Skyscanner shows.
The intensifying competition in Malaysia is part of a wider battle for low cost carrier (LCC) dominance between AirAsia and privately held Lion Air, which has placed huge aircraft orders and plans to use its dominance in Indonesia to expand in Asia.
Shukor Yusof, a Singapore-based aviation analyst at Standard & Poor's, said that while Malindo was not yet established enough to be a big worry for AirAsia, the Malaysia-based firm would be under pressure in the coming months from the aggressive pricing.
"That could also result in AirAsia's bottom line being affected as they will have to retaliate in some ways, which means erosion in yields."
Malindo's chief executive Chandran Ramamurthy said the airline had clocked load factors - the proportion of seats occupied by paying passengers - of 79 percent on average but did not say if the routes were profitable.
The airline plans to expand to Sibu, Miri and Tawau in East Malaysia this month.
"Sustainable or not, we will come back to you maybe next year and tell you," he told reporters last Thursday, referring to its pricing strategy.
Lion Air has a 49 percent stake in Malindo, a joint venture with Malaysia's National Aerospace & Defense Industries Sdn Bhd.
CRACKS APPEAR
Despite AirAsia's rapid expansion to markets as far-flung as Japan and Indonesia - boosting its fleet to 124 planes - its Malaysian operation still makes up 80 percent of its profits, boasting plump group operating profit margins of 19.5 percent.
The challenge from Malindo comes as higher financing costs erode AirAsia's earnings.
AirAsia reported a 39 percent fall in profit in January-March. Since the start of the year, analysts have trimmed net profit estimates for AirAsia for 2013 by 3 percent.
AirAsia's charismatic boss Tony Fernandes dismissed the challenge from Malindo with a curt "no" when asked about it by Reuters last month.
Subhranshu Sekhar Das, who heads consultancy Frost & Sullivan's aerospace and defence practice for Asia-Pacific, said Malindo was targeting a niche between full-service and budget.
Malindo steps into a void left by Malaysian Airline System Bhd's turboprop arm Firefly, which gave up its service to Borneo destinations in 2011.
Along with the onboard perks, Malindo trumps its bigger rival as it flies from Kuala Lumpur's well-connected main international airport rather than AirAsia's low-cost terminal.
"Malindo gives us more. At almost the same price we can get a free sandwich and bottled drink on board ... and boarding from a better airport," said Mohamad Yazmi Fauzi, 19, who boarded Malindo for the first time from Kuching to Kuala Lumpur in May. ($ = 3.0990 Malaysian ringgit) (Additional reporting By Alan Baldwin in LONDON, Patturaja Murugaboopathy in BANGALORE and Siva Govindasamy in SINGAPORE; Editing by Stuart Grudgings and Jeremy Laurence)
REUTERS
Malaysia's AirAsia Bhd, which has dominated budget air travel in Asia with explosive growth over the past decade, faces serious competition at home just as it tries to scale up operations in the region.
Malindo Airways, an affiliate of fast-growing Indonesian budget carrier Lion Air, began operating in Malaysia two months ago, offering competitive fares on lucrative routes.
Malindo is also luring travellers with perks such as free snacks, a booked luggage allowance and enlarged seats.
The new player's entry has since sparked a price war.
Median prices for the routes from Kuala Lumpur to the Borneo island hubs of Kota Kinabalu and Kuching fell between March and May by 12.6 percent and 18.6 percent respectively, data from travel website Skyscanner shows.
The intensifying competition in Malaysia is part of a wider battle for low cost carrier (LCC) dominance between AirAsia and privately held Lion Air, which has placed huge aircraft orders and plans to use its dominance in Indonesia to expand in Asia.
Shukor Yusof, a Singapore-based aviation analyst at Standard & Poor's, said that while Malindo was not yet established enough to be a big worry for AirAsia, the Malaysia-based firm would be under pressure in the coming months from the aggressive pricing.
"That could also result in AirAsia's bottom line being affected as they will have to retaliate in some ways, which means erosion in yields."
Malindo's chief executive Chandran Ramamurthy said the airline had clocked load factors - the proportion of seats occupied by paying passengers - of 79 percent on average but did not say if the routes were profitable.
The airline plans to expand to Sibu, Miri and Tawau in East Malaysia this month.
"Sustainable or not, we will come back to you maybe next year and tell you," he told reporters last Thursday, referring to its pricing strategy.
Lion Air has a 49 percent stake in Malindo, a joint venture with Malaysia's National Aerospace & Defense Industries Sdn Bhd.
CRACKS APPEAR
Despite AirAsia's rapid expansion to markets as far-flung as Japan and Indonesia - boosting its fleet to 124 planes - its Malaysian operation still makes up 80 percent of its profits, boasting plump group operating profit margins of 19.5 percent.
The challenge from Malindo comes as higher financing costs erode AirAsia's earnings.
AirAsia reported a 39 percent fall in profit in January-March. Since the start of the year, analysts have trimmed net profit estimates for AirAsia for 2013 by 3 percent.
AirAsia's charismatic boss Tony Fernandes dismissed the challenge from Malindo with a curt "no" when asked about it by Reuters last month.
Subhranshu Sekhar Das, who heads consultancy Frost & Sullivan's aerospace and defence practice for Asia-Pacific, said Malindo was targeting a niche between full-service and budget.
Malindo steps into a void left by Malaysian Airline System Bhd's turboprop arm Firefly, which gave up its service to Borneo destinations in 2011.
Along with the onboard perks, Malindo trumps its bigger rival as it flies from Kuala Lumpur's well-connected main international airport rather than AirAsia's low-cost terminal.
"Malindo gives us more. At almost the same price we can get a free sandwich and bottled drink on board ... and boarding from a better airport," said Mohamad Yazmi Fauzi, 19, who boarded Malindo for the first time from Kuching to Kuala Lumpur in May. ($ = 3.0990 Malaysian ringgit) (Additional reporting By Alan Baldwin in LONDON, Patturaja Murugaboopathy in BANGALORE and Siva Govindasamy in SINGAPORE; Editing by Stuart Grudgings and Jeremy Laurence)
REUTERS
Last edited by jetjockey696; 10th Jul 2013 at 05:52.
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Malaysia-based low-fare carrier AirAsia plans to phase out its foreign pilots as part of the carrier’s goal to employ an all-Malaysian workforce and to cut costs.
The exercise would happen gradually with the expiration of the pilots’ respective contracts. The airline has not set a date to achieve its objective but estimates that it should materialize by 2018 or 2019.
According to an airline spokesman, AirAsia now employs some 700 pilots, 100 of whom are foreigners from 32 countries. All serve as captains on the Airbus A320 fleet.
The last foreign first officer to have served on the fleet, a Filipino, has transferred to Manila-based low-cost carrier Zest Air, in which AirAsia holds a 40-percent stake. AirAsia also holds a 40-percent share of AirAsia Philippines.
AirAsia hopes to hire more Malaysians with frozen airline transport pilot (ATP) licenses to fill the vacancies of senior first officers promoted to captain over the next couple of years.
Some 955 young Malaysians with frozen ATP licenses who privately funded their training at local flying schools are currently unemployed.
Rapid expansion over the last five years has forced AirAsia to hire a huge number of foreign crews, despite poaching serving pilots and hiring some who retired at the age of 60 from flag carrier Malaysia Airlines. AirAsia pilots can fly until they reach the ICAO-mandated age limit of 65.
The AirAsia fleet averages 14 hours utilization a day, thanks to 30-minute turnaround times and high crew productivity.
A pioneer in low-cost travel in Asia, the carrier started operations in December 2001 with two 737-300s serving four domestic destinations. Its fleet of 64 Airbus A320s now flies to 44 destinations from four hubs: Kuala Lumpur International Airport, Kota Kinabalu International Airport, Kuching International Airport and Senai International Airport.
Holding delivery positions on 86 Airbus A320s, including 64 A320neos, the AirAsia group operates affiliate airlines in Thailand, Indonesia, the Philippines and Japan, as well as a long-haul carrier, Air Asia X. It plans to launch AirAsia India in the fourth quarter with Indian partners Tata Sons and Telestra Tradeplace. While AirAsia and All Nippon Airways have agreed to dissolve the Japanese venture due to “management differences,” AirAsia group CEO Tony Fernandes has already signaled a desire to enter a joint venture in Japan with a different party.
source AINonline 29 July 2013
The exercise would happen gradually with the expiration of the pilots’ respective contracts. The airline has not set a date to achieve its objective but estimates that it should materialize by 2018 or 2019.
According to an airline spokesman, AirAsia now employs some 700 pilots, 100 of whom are foreigners from 32 countries. All serve as captains on the Airbus A320 fleet.
The last foreign first officer to have served on the fleet, a Filipino, has transferred to Manila-based low-cost carrier Zest Air, in which AirAsia holds a 40-percent stake. AirAsia also holds a 40-percent share of AirAsia Philippines.
AirAsia hopes to hire more Malaysians with frozen airline transport pilot (ATP) licenses to fill the vacancies of senior first officers promoted to captain over the next couple of years.
Some 955 young Malaysians with frozen ATP licenses who privately funded their training at local flying schools are currently unemployed.
Rapid expansion over the last five years has forced AirAsia to hire a huge number of foreign crews, despite poaching serving pilots and hiring some who retired at the age of 60 from flag carrier Malaysia Airlines. AirAsia pilots can fly until they reach the ICAO-mandated age limit of 65.
The AirAsia fleet averages 14 hours utilization a day, thanks to 30-minute turnaround times and high crew productivity.
A pioneer in low-cost travel in Asia, the carrier started operations in December 2001 with two 737-300s serving four domestic destinations. Its fleet of 64 Airbus A320s now flies to 44 destinations from four hubs: Kuala Lumpur International Airport, Kota Kinabalu International Airport, Kuching International Airport and Senai International Airport.
Holding delivery positions on 86 Airbus A320s, including 64 A320neos, the AirAsia group operates affiliate airlines in Thailand, Indonesia, the Philippines and Japan, as well as a long-haul carrier, Air Asia X. It plans to launch AirAsia India in the fourth quarter with Indian partners Tata Sons and Telestra Tradeplace. While AirAsia and All Nippon Airways have agreed to dissolve the Japanese venture due to “management differences,” AirAsia group CEO Tony Fernandes has already signaled a desire to enter a joint venture in Japan with a different party.
source AINonline 29 July 2013
Last edited by squarecrow; 4th Aug 2013 at 14:14.
