AirAsia Japan set to return to the sky of Japan with new investors

AirAsia confirmed (01-Jul-2014) the carrier has entered into a Shareholders Agreement with Octave Japan Infrastructure Fund I GK (Octave), Rakuten Inc (Rakuten), Noevir Holdings Co Ltd (Noevir), and Alpen Co Ltd (Alpen) to establish AirAsia Japan. Details include:

• Capitalisation: The JV will require an initial capitalisation of JPY1000 million (USD10 million) of which 49% will be injected by AirAsia. AirAsia Japan will have an authorised capital of JPY7000 million (USD70 million) and the JV will be further capitalised gradually over time as the board of AirAsia Japan may in its discretion decide;
• Ownership: Under the shareholders agreement and in compliance with Japanese Aviation laws on foreign ownership, AirAsia through its wholly-owned subsidiary AirAsia Investment Ltd will hold 49% economic ownership and 33% voting ownership. Octave will hold 19% economic ownership and 28.2 voting ownership, Rakuten will hold 18% economic ownership and 18% voting ownership, Noevir will hold 9% economic ownership and 13.4% voting ownership and Alpen will hold 5% economic ownership and 7.4% voting ownership in AirAsia Japan;
• Operations: The start-up is expected to commence operations in summer 2015 (Jul/Aug-2015) and will serve the Japanese domestic market as well as Northeast Asia countries such as South Korea, Taiwan and China. AirAsia believes the JV will also be able to connect to the extensive ASEAN market through the existing AirAsia route network operated by the AirAsia Group. AirAsia also said that its study forecasts the JV will be operationally feasible and commercial viable, adding "the JV will not make any material contribution in the short term but will contribute positively in the long-term to the results of AirAsia."

AirAsia Group CEO Tony Fernandes said, "We are very excited to return to Japan's skies together with Octave, Rakuten, Noevir and Alpen this time round. I am more confident than ever that AirAsia Japan, led by Odi (Odagiri Yoshinori) with the strong partnership we have with our new investors, will continue to realise our vision to revolutionise the low-cost carrier segment of Japan. The AirAsia Japan team is now working hard with the relevant authorities to obtain necessary operational approvals, and we hope that all will be in place to start both domestic and international flights by the summer of 2015." AirAsia Japan CEO Odagiri Yoshinori further commented, "We are ready to take on this challenge and with great teamwork, we hope to bring AirAsia's successful low-cost business model once again to Japan. Our counterparts in Malaysia, Thailand, Indonesia, the Philippines and India have seen great and encouraging responses in their markets, and we will work towards the same for Japan. We would like to thank the investors for their belief in us and we look forward to working closely with them moving forward." [more - original PR - AirAsia][more - original PR - Rakuten][more - original PR - AirAsia Japan]