All Nippon Airways' preparations to launch a low cost carrier (LCC) in 12 months received a boost yesterday with confirmation Innovation Network Corporation of Japan (INCJ) has invested JPY10 million (USD120,176) to acquire a 33.3% stake in the A&F Aviation Co Ltd venture.
A director from INCJ will sit on the board of A&F Aviation as an external board member to support A&F Aviation across its business. A&F Aviation expects to raise about JPY15 billion yen additionally within the fiscal year ending in Mar-2012, by which the company hopes to officially launch the airline. INCJ also has an option to make an additional investment. As of 31-Mar-2011, ANA, First Eastern, and INCJ hold 33.4%, 33.3%, and 33.3% of the company’s shares, respectively.
A&F Aviation CEO, Shinichi Inoue, said: "This financial and operational support from INCJ is an important step toward the launch of A&F Aviation.“We aim to become a cultural bridge between Japan and the rest of Asia, triggering an economic growth in Japan and across Asia.
Of the listed LCCs in Asia, AirAsia's shares advanced 1.9% yesterday and Cebu Pacific gained 0.6%, while Tiger Airways fell 0.7%.
Selected LCC daily share price movements (% change): 1-Apr-2011
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