AirAsia Japan collapses after AirAsia Group was too bearish while ANA lacked experience

Diagnosing the exact cause of failure at AirAsia Japan, which will end operations with that name on 31-Oct-2013, is subject to opinion of joint venture partners AirAsia Berhad and All Nippon Airways (ANA), as well as third parties. But most would agree that there have been fundamental structural problems.

Many of the challenges have faced not only AirAsia Japan but also Jetstar Japan and Peach Aviation. Some problems were spotted in advance and intentionally avoided by peers. Collectively, they point towards LCCs having a long-term future in Japan but only under the right circumstances.

AirAsia Japan's troubles stem from its ownership structure that gives ANA majority control; something that a Japanese carrier does not have in Jetstar Japan or Peach. This allows LCC professionals, not legacy managers, to run the airline.