Rakuten Group of Japan announces acquisition of 18% stake in AirAsia Japan

▲ AirAsia A320 aircraft. (Photo / Screenshot from AirAsiaTaiwan Facebook)

Travel Center / Comprehensive Report

On July 1, Rakuten Group announced that it has acquired an 18% stake in AirAsia Japan Co., Ltd., one of the largest low-cost airlines in Asia. The airline is set to enter the Japanese aviation market, with plans to raise a total capital of 7 billion yen.

Rakuten Group stated that low-cost carriers account for 52% of the market share in Southeast Asia’s aviation industry, and over 30% on North American and European routes. Low-cost airlines are driving increased consumer demand for air travel services. In Japan, the low-cost airline market has been growing steadily since March 2012, when domestic flights commenced, and their market share is expected to continue expanding in the future.

Rakuten also announced that it will leverage this equity investment to develop its travel services, with a particular focus on the rapidly growing Southeast Asian region, aiming to solidify its significant presence in the travel market. Rakuten Group’s travel service, Rakuten Travel, is one of the most popular in Japan, with nearly 30,000 affiliated hotel partners. The service operates 17 offices across Japan and 20 overseas offices spanning 12 global markets.