Clashes on management and unsure decisions regarding operations may ultimately dissolve the partnership of AirAsia and Japan's All Nippon Airways Co., said AirAsia in a statement. The companies previously agreed on a joint venture on low-cost air travel.

AirAsia said that a "difference of opinion in management, most critically on the points of how to operate a low cost business" on the Japanese end of the partnership is causing a rift on the deal.

Furthermore, the budget airline said Tuesday that it is not ruling out options, including the possibility of "dissolution of the joint venture."

The statement also included AirAsia's observation on AirAsia Japan's management. The former said that AirAsia Japan failed to meet the targets set by the company because of its "inability to manage costs."

AirAsia Japan is a subsidiary of AirAsia, which is partly owned by by All Nippon Airways Co.