Loading

The AirAsia Japan joint venture stumbles. Can LCCs survive in Japan?

Analysis

AirAsia announced on 11-Jun-2013 that its LCC joint venture with All Nippon Airways has "been facing some challenges attributed to a difference of opinion in management, most critically on the points of how to operate a low cost business and operating from Narita," and that it "would not rule out any options... including dissolution of the joint venture".

This is tantamount to talking of "irreconcilable differences" in a divorce case. If the two airlines have been unable to consummate something that meets their mutual goals after almost a year of operations, this is an ex-marriage.

Even ANA, less bluntly, effectively acknowledges that the partnership hasn't worked and that it is considering combining the operations of its part-owned Peach with the residue of the AirAsia Japan operation.

So where to next? The next steps could be the genesis of a whole new scenario, or - something less. AirAsia might withdraw completely, form a financial JV partnership - or perhaps go back to talking to Skymark.

Read More

This CAPA Analysis Report is 2,599 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More