ANA and First Eastern conclude shareholders agreement to invest in new LCC

All Nippon Airways Co and Hong Kong-based First Eastern Investment Group finalised (01-Feb-2011) their JV agreement to invest in a new LCC based at Kansai International Airport. A JV company, A&F Aviation Co Ltd, will be established and will own and operate the new carrier. The initial capitalisation of the new company will be JPY30.1 million (USD369,195) comprised of:

• ANA: JPY10.1 million (USD123,480);
• First Eastern Aviation Holdings Limited (Hong Kong Corporation): JPY10 million (USD122,865);
• Others: JPY10 million (USD122,865);
• Additional investment: Prior to the start of service, additional investment will be raised from domestic investors to a maximum of approximately JPY15 billion (USD184.3 million).

The new company will apply for an AOC and begin to build its brand with the aim of beginning low-cost operations in the second half of next fiscal year. The CEO of the new company is planned to be Shinichi Inoue, currently VP LCC Joint Venture Project Team of ANA. [more]