AirAsia gets partners for budget airline in Japan

MANILA, Philippines – The AirAsia Group announced Tuesday, July 1, that it will re-enter Japan’s low-cost carrier market.

AirAsia will enter into a shareholders agreement with Octave Japan Infrastructure Fund I GK (Octave), Rakuten Inc. (Rakuten), Noevir Holdings Co. Ltd. (Noevir), and Alpen Co. Ltd. (Alpen) to establish AirAsia Japan.

AirAsia Japan will have an initial capitalization of 7 billion yen ($69 million) and will start flying in about a year with a fleet of 5 Airbus A320 aircraft.

Octave will own 19% of the new airline, while Rakuten will own an 18% stake. Noevir will own 9% and Alpen, 5%, Reuters reported.

Malaysian-based AirAsia first ventured in Japan in 2012 and partnered with the country’s biggest carrier, ANA. The venture failed and the airline has since been rebranded into Vanilla Air, now wholly owned by ANA and based out of Tokyo’s Narita airport.

“… I am more confident than ever that AirAsia Japan … with the strong partnership we have with our new investors, will continue to realize our vision to revolutionize the low-cost carrier segment of Japan,” AirAsia Group CEO Tony Fernandes said in a statement.

The AirAsia Japan team is now working hard to obtain necessary operational approvals from relevant authorities, and hopes that all will be in place so it can start domestic and international flights by the summer of 2015, Fernandes added.

AirAsia hopes to bring its “successful low-cost business model once again to Japan,” noted AirAsia Japan CEO Odagiri Yoshinori.

“Our counterparts in Malaysia, Thailand, Indonesia, the Philippines, and India have seen great and encouraging responses in their markets, and we will work toward the same for Japan,” Yoshinori added.

AirAsia’s new investor, Rakuten was incorporated in Japan on February 1997. Its major business includes Internet services (e-commerce, travel), financial services (bank, credit card, securities, etc.), telecommunications, and professional sports.

Noevir, which was incorporated on March 2011, is into cosmetics, pharmaceuticals and health food, apparel, and aviation business.

Alpen was incorporated on July 1972 and its major business includes manufacturing and retail of ski equipment; other sporting goods equipment including golf, tennis, marine sports, baseball, etc., and leisure goods; and management of ski resorts, golf courses and fitness clubs. – Rappler.com