Malaysia-based AirAsia signed the termination agreement with Ail Nippon Airways (ANA) on June 25, confirming earlier reporter it was ending the partnership and exiting the joint venture, AirAsia Japan, due to a difference of opinion in management and on ways to operate the business.
The joint venture was established in August 2011 to start low cost carrier operations out of Tokyo's Narita International Airport, which saw the launch of AirAsia Japan in 2012.
In announcing the ending of ties with ANA, AirAsia in a statement cited the many challenges faced by the joint venture since its launch as one of the reasons for its withdrawal from the partnership.
"Issues stemmed from a fundamental difference of opinion between its shareholders on how the business should be managed from cost management to where the domestic business operations should be based." added the statement
The termination will see ANA Holding acquiring AirAsia's 49% in AirAsia Japan for Ą2.5 billion (US$25.6 million), the return of all AirAsia aircraft leased to AirAsia Japan by November 1, payment of all fees accrued from the leasing of the aircraft, and unwinding the use of the AirAsia brand by AirAsia Japan by November 1.
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