All Nippon Airways (ANA) and AirAsia have reportedly agreed to establish a LCC JV in Japan in autumn 2011, with ANA to contribute around 67% and AirAsia around 33% of the capital (The Nikkei, 21-Jul-2011). Services are expected to commence from Tokyo Narita in summer 2012. The firms are expected to formally announce the agreement on 21-Jul-2011. The carrier will likely service domestic and overseas destinations, such as New Chitose Airport, major Chinese cities, Seoul, Southeast Asian countries and Guam. ANA and AirAsia will reportedly charge around half the price of other carriers on the route they service. ANA recently launched its first LCC JV, Peach Aviation Ltd, with services to commence from Kansai International Airport in Mar-2012.
ANA and AirAsia expected to make LCC JV announcement
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Malaysia AirAsia: challenges emerge to recent good results but costs, brand awareness are strengths
Short haul LCC group AirAsia faces intensifying competition in its original home market of Malaysia. Malaysia AirAsia (MAA) is no stranger to fierce competition and has the cost structure to fight back, but the price might be a dilution of recent yield and load factor improvements.
MAA has benefitted over the last year from the restructuring of Malaysia Airlines and an improvement in overall market conditions. However, the new Malaysia Airlines is starting to emerge as a tougher competitor, with a new, more aggressive pricing strategy. Meanwhile Lion Group’s Malaysian JV Malindo Air is again accelerating expansion, targeting several of AirAsia’s most lucrative routes.
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