ANA and AirAsia to form 'AirAsia Japan'

Tokyo, 21 July 2011

ANA Group, Japan's largest airline, and AirAsia, the world's best low cost airline, today announced that they are teaming up to form AirAsia Japan, a new low-cost carrier.

AirAsia Japan will be the first low-cost carrier to be based at Narita International Airport. Operating under the AirAsia brand, it is to serve both domestic and international destinations when commencing operations in August 2012, subject to obtaining the relevant approvals.

In Japan, the aviation market is undergoing rapid transformation with developments including the expansion of Open Skies agreements and increased domestic competition from road and rail-based travel. In addition, Narita airport, a major international hub serving Tokyo, is seeking to increase capacity with the introduction of a new terminal and is expected to attract many low-cost carriers and foreign airlines.

ANA has been seeking opportunities to launch a new low-cost business based at Narita and, after analysis, has concluded that partnering with an existing low-cost carrier is the most efficient and strategically advantageous option.

Having already established an unmatched network, especially within the ASEAN region, AirAsia has been seeking a business partner with strong Japanese market influence to further expand its scope, as well as contribute to strengthening bilateral ties between ASEAN and Japan.

The formation of AirAsia Japan leverages AirAsia's successful business model and brings together the complementary strengths of the two companies, generating new demand with the aim of making affordable and quality travel available to all.

Mr. Shinichiro Ito, President and CEO of ANA said, "By combining AirAsia's business model and brand with ANA's depth of knowledge of the Japanese market, we aim to bring new value to our customers, offer diverse and enjoyable travel experiences, and generate new demand. We believe that AirAsia Japan will make air travel more accessible and provide a convenient and efficient travel option for a wide range of people."

Tan Sri Dr. Tony Fernandes, Group CEO of AirAsia said, "We are proud to extend AirAsia's successful low-cost business model to Japan and further provide opportunities for everyone to fly to the destinations of their dreams with low fares. AirAsia Japan will not only boost economic growth between ASEAN and East Asia by providing better access to markets around the region, but also enhance links within travel, trade and tourism. AirAsia is proud to be identified as a low cost carrier partner to ANA, avery respected, credible and successful airline in Japan. This new joint venture is an important milestone in AirAsia's growth as ANA is the very first airline partner to form a joint venture with AirAsia."

New Company Outline
Company name AirAsia Japan Co., Ltd.
Address 1-5-2 Higashi Shimbashi, Minato-ku, Tokyo (plan)
Capital ANA 67%, AirAsia 33% (Voting-right share basis)
*ANA 51%, AirAsia 49% (Capital basis)
Base Narita International Airport
Paid-in-capital JPY 5 Billion
Fiscal year ending March
* Company representative will be determined once the company is formally established.
* AirAsia Japan will operate under the AirAsia brand and service model.

Aug. 2011 Establish company
Sept.- Oct. 2011 Apply for Air Operators' Certificate (AOC)
Aug. 2012 First flight
* The above schedule is subject to obtaining the relevant approvals.
* Because operations will not commence until 2012, ANA does not anticipate any impact to its earnings for this fiscal year, ending March 2012.