All Nippon Airways and AirAsia alliance to launch Japan’s low-cost airline

By Li Xinyi, compiled and reported

 

Japan’s well-known airline All Nippon Airways (ANA) and global low-cost airline AirAsia have announced an alliance plan to form a brand-new low-cost airline, “AirAsia Japan,” next year. AirAsia Japan will be the first low-cost airline based at Tokyo’s Narita Airport. After obtaining the relevant approvals and commencing operations in August 2012, it is expected to offer both domestic and international flights for travelers.

The gradual expansion of the “Open Skies Agreement,” along with fierce competition from rail and road travel, has brought rapid changes to Japan’s aviation industry. Following Singapore Airlines’ recent announcement of establishing a new low-cost airline, the partnership between ANA and AirAsia will further intensify the low-cost airline market. A key factor driving this alliance is Narita Airport’s plan to build a new terminal aimed at attracting low-cost and international flights to increase the airport’s capacity. ANA, the world’s ninth-largest airline and Japan’s largest in terms of passenger volume, has been seeking opportunities to develop low-cost routes at Narita Airport amid these industry shifts. Partnering with an existing low-cost airline is undoubtedly the most cost-effective and optimal strategic solution.

Similarly, AirAsia, which has established an extensive air network across ASEAN and globally, is also eager to find an influential partner in the Japanese market. With AirAsia’s successful experience in operating low-cost airlines, combined with the strong market presence both companies already possess, AirAsia Japan will take low-cost air travel to new heights, expanding to more destinations and allowing more Asian travelers to enjoy the joy of flying.