IN AN unexpected turn of events, AirAsia announced today that it was considering the dissolution of subsidiary AirAsia Japan, less than a year after the LCC commenced operations (TTG Asia e-Daily, February 7, 2012).
AirAsia Japan, a joint venture company set up by AirAsia and All Nippon Airways (ANA), is largely staffed by ANA employees, including its CEO and CFO.
A statement by AirAsia said that management opinions had clashed, “most critically on the points of how to operate a low-cost business and operating from Narita (airport)”.
The statement went on to say: “Since its launch in 2012, Japan AirAsia has failed to track its proposed business plan due to the inability to manage costs, but has seen customer adoption increasing as the AirAsia brand starts to resonate in the market.
“AirAsia continues to be…committed to Japan and sees the potential for a low-cost airline to thrive in the market and would not rule out any options to make this happen, including dissolution of the joint venture.”
AirAsia and ANA are exploring all available options at the moment, said the statement.