AirAsia Bhd. and ANA Holdings partnership nearing end

By IVCPOST Staff Reporter

Jun 10, 2013 08:00 AM EDT

Low-cost Japanese carrier AirAsia Bhd.'s airline venture with ANA Holdings Inc. is at risk of dissolution due to management clashes and hopes of better sales.

A possible option is AirAsia Japan Co., said ANA spokesperson Megumi Tezuka  by phone today. However, no final decision has been made, she added. AirAsia Group chied executive officer Tony Fernandes said thru e-mail that he would confirm the company's next action "in due time."

Japan is notorious for its difficulty in creating a sustainable discount airline venture because of the country's lofty landing fees, among the highest in the world.

The venture, 67%-owned by ANA and 33%-owned by AirAsia, only recently started its services in Japan. The flights are based in Narita Airport in Tokyo where another company, domestic airline Jetstar Japan, is based as well. The latter filled almost 80% of its seats, according to the company, while AirAsia only managed to fill 67.6%. Another airline company, Peach, sold 91.3% of its domestic seats, according to them.

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