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26-Jun-2013 10:17 AM

AirAsia and ANA announce termination of AirAsia Japan JV, ANA to acquire AirAsia stake for USD25m

ANA Holdings and AirAsia announced (25-Jun-2013) the decision to dissolve AirAsia Japan with the signature of a termination agreement to this effect. ANA Holdings will acquire AirAsia Berhad's shareholding in the JV, which will henceforth operate as a wholly-owned subsidiary of ANA, based at Tokyo Narita Airport. AirAsia Japan will continue to operate under the AirAsia brand until 31-Oct-2013. In announcing the decision, AirAsia noted: "The joint venture, created two years ago under the name AirAsia Japan faced many challenges since its launch. Issues stemmed from a fundamental difference of opinion between its shareholders on how the business should be managed from cost management to where the domestic business operations should be based". Details include:

AirAsia Group: "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 the 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," Tony Fernandes, CEO. Source: Company statement, 25-Jun-2013.

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