| First Eastern to invest in new ANA budget airline |
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09/09/2010 13:43 (521 Day 00:06 minutes ago) | ||||
The FINANCIAL -- All Nippon Airways (“ANA”), one of the leading Japanese airlines, and First Eastern Investment Group (“First Eastern”), a pioneer of direct investments in China, on September 9 announced the signing of a Memorandum of Agreement to establish the first Japanese low cost airline.
The new airline will operate both international and domestic short-haul routes out of Kansai International Airport , Osaka. The new airline will operate independently from ANA.
According to ANA, the new company will be established in the second half of 2010 with Japanese investors holding a 66.7% stake of which ANA will hold a 39% stake and First Eastern will hold the remaining 33.3% stake, the maximum foreign ownership currently allowed for an airline in Japan. The new company’s air transport operations are expected to commence in the second half of 2011.
Shinichiro Ito, President and CEO of ANA, said, “Under our corporate vision of becoming the number one airline group in Asia, ANA has been steadily working to substantially improve its network between Japan and Asia. 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. We are pleased to partner with First Eastern and to work together to establish the first low cost carrier in Japan.”
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