AIRASIA and ANA Holdings have officially split over irreconcilable differences and are laying AirAsia Japan to rest, with AirAsia announcing today that a termination agreement had been signed.
The parting of ways will see AirAsia’s 49 per cent stake in AirAsia Japan acquired by ANA Holdings for 2.5 billion yen (US$25.6 million), the return of all AirAsia aircraft leased to AirAsia Japan by November 1, payment of all outstanding fees from the lease and operations, and the cessation of use of the AirAsia brand by AirAsia Japan, also by November 1.
However, AirAsia Japan flights up to October 31 will continue as planned. AirAsia X operations to both Tokyo-Haneda and Osaka will not be affected.
Tony Fernandes, CEO, AirAsia Group, said: “I have great respect for ANA as the leading legacy airline in Japan but it is time for us to part ways and focus our attention on what we do best, which is running a true LCC.
“Despite cost issues, the AirAsia brand has resonated with Japanese customers and the trend we see for July and August is very strong for all of Japan. I remain positive on the Japanese market and believe there is tremendous opportunity for an LCC to succeed, as proven by the tremendous success AirAsia X has seen.
“We have not given up on the dream of changing air travel in Japan and look forward to returning to the market,” he added.
In a statement released earlier this month, AirAsia had said it was mulling the dissolution of the two-year old joint venture (TTG Asia e-Daily, June 11, 2013).
The AirAsia press release issued today said the LCC had faced difficulties due to a “fundamental difference of opinion between its shareholders” over business management decisions.