Japan's
All Nippon Airways, along with other Japan-based investors and a Hong
Kong-based investment firm, on Thursday signed an agreement to launch in the
second half of next year what they call "the first Japanese low-cost airline," which plans to serve
short-haul international and domestic routes from Osaka's Kansai International
Airport.
The new airline, which has yet to reveal
a brand identity, routes or management, plans to operate independently from ANA
when it launches in the second half of 2011. ANA, along with other Japanese
investors, will hold 66.7 percent of the airline, while Hong Kong-based
investment firm First Eastern will control the remaining 33.3 percent stake—the
maximum foreign ownership allowed in Japan.
The investors plan to
establish the new company that will run the low-cost carrier by the end of this
year. Broadly sketched, the airline would offer point-to-point service, operate
using a single aircraft type and provide customers "simple services"
with the room for a la carte revenues.
On domestic routes, the
investors envision the new carrier taking share from "other low-fare transportation
providers such as bus and train operators," while the airline would "stimulate
demand through pricing that creates substantial differentiation with existing
airlines" on international routes.
"Regardless of the
intense competition in the air transportation industry, we anticipate an
increase in passenger traffic demand in East Asia, and came to the conclusion
that a low- cost carrier would be the right approach to compete effectively in
this market," ANA president and CEO Shinichiro Ito said in a statement.