Back in the game again: AirAsia and Rakuten team up to re-enter Japan’s low-cost airline market

▲ AirAsia will once again challenge the domestic low-cost airline market in Japan. (Photo / Reporter You T-Ru)

Travel Center / Comprehensive Report

Malaysia’s “AirAsia” is now expected to make a comeback. Japanese e-commerce giant Rakuten is interested in joining forces with AirAsia, planning to enter the Japanese low-cost airline market in mid-2015, with an official announcement of the partnership expected in July.

AirAsia had previously partnered with All Nippon Airways in August 2012 to establish “AirAsia Japan,” but due to poor market response, the partnership was dissolved in 2013, and AirAsia withdrew from the Japanese domestic airline market. However, with Tokyo winning the bid to host the 2020 Olympics, AirAsia anticipates a significant increase in air traffic, prompting its decision to re-enter the market.

According to reports from Japanese media, in preparation for its comeback, AirAsia established a new headquarters for “AirAsia Japan” at Chubu Centrair International Airport in Aichi Prefecture in March this year. Additionally, under Japanese aviation regulations, foreign investors can hold a maximum of one-third of the shares in a Japanese domestic airline. As such, Rakuten is expected to become the largest shareholder of “AirAsia Japan.” Once operations officially begin, AirAsia Japan also plans to sell travel package deals related to Rakuten’s travel business.