Tuesday, 11 June 2013

AirAsia might exit partnership with Nippon Airways

KUALA LUMPUR: There is a possibility that AirAsia may exit from its almost two-year old joint venture (JV) with All Nippon Airways in AirAsia Japan due to differences of opinion within the management of the new airline.

AirAsia airline said the differences were most critically on the points of how to operate a low cost business and operating from Narita, Japan's major airport.

As a result, the low-cost carrier said in a statement today that it "would not rule out any option, including dissolution of the JV," which was established in August 2011.

"Nevertheless, AirAsia is still optimistic and committed to Japan and sees the potential for a low cost airline to thrive in the market, while not ruling out any option to make this happen, including, dissolution of the JV," it added.

AirAsia said the AirAsia Japan management team was predominantly comprised of ANA staff, starting with, but not limited to the chief executive officer and chief financial officer.

"Since its launch in 2012, AirAsia Japan has failed to track its proposed business plan due to an inability to manage costs, but has seen customer adoption increasing, as the brand starts to resonate in the market," AirAsia said.

AirAsia also said the parties are exploring all available options and any decision will be further subject to the respective corporate approvals of ANA and AirAsia Bhd.- Bernama

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