AirAsia Japan gets grounded by October

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AirAsia Japan
AirAsia Japan has seen better days

AirAsia’s joint venture in Japan will cease operations by October because it is missing profit targets and due to a “fundamental difference of opinion between its shareholders on how the business should be managed,” the carrier announced on July 27.

It will cancel hundreds of flights over two months before it ends operations under the current brand. The affected routes include flights linking Seoul to Nagoya and Tokyo to Sapporo. All in all, 14 daily flights will be suspended starting from September1, 2013, affecting some 14,000 passengers.

Air Nippon Airways (ANA), which holds 67 per cent of the joint venture, said it will acquire AirAsia’s stake of 33 per cent for $25 million and rebrand the airline by the end of the year under a new name and with different routes.

The decision came less than a year after AirAsia Japan began operations. It logged losses of $36 million in its fiscal year that ended in March 2013.

One of ANA’s options could be to merge the airline with the other low-cost carrier that it has a share in, Peach Aviation, a joint venture with Hong Kong investment group First Eastern Aviation Holdings.

However, AirAsia CEO Tony Fernandes said that AirAsia could still continue operating in Japan under a new venture that could include current employees of AirAsia Japan, but declined to give further details.

 

 

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Reading Time: 1 minute

AirAsia Japan has seen better days

AirAsia’s joint venture in Japan will cease operations by October because it is missing profit targets and due to a “fundamental difference of opinion between its shareholders on how the business should be managed,” the carrier announced on July 27.

Reading Time: 1 minute

AirAsia Japan
AirAsia Japan has seen better days

AirAsia’s joint venture in Japan will cease operations by October because it is missing profit targets and due to a “fundamental difference of opinion between its shareholders on how the business should be managed,” the carrier announced on July 27.

It will cancel hundreds of flights over two months before it ends operations under the current brand. The affected routes include flights linking Seoul to Nagoya and Tokyo to Sapporo. All in all, 14 daily flights will be suspended starting from September1, 2013, affecting some 14,000 passengers.

Air Nippon Airways (ANA), which holds 67 per cent of the joint venture, said it will acquire AirAsia’s stake of 33 per cent for $25 million and rebrand the airline by the end of the year under a new name and with different routes.

The decision came less than a year after AirAsia Japan began operations. It logged losses of $36 million in its fiscal year that ended in March 2013.

One of ANA’s options could be to merge the airline with the other low-cost carrier that it has a share in, Peach Aviation, a joint venture with Hong Kong investment group First Eastern Aviation Holdings.

However, AirAsia CEO Tony Fernandes said that AirAsia could still continue operating in Japan under a new venture that could include current employees of AirAsia Japan, but declined to give further details.

 

 

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