All Nipon Airways (ANA) and AirAsia have partnered together to form a new low-cost airline called AirAsia Japan to expand the budget-fare services in Northeast Asia.

The new low-cost airline will be based at the Narita International Airport and will serve both domestic and international destinations in Northeast Asia with flights to South Korea, Taiwan and mainland China once it commences operations.

The airline is scheduled to be operational in August 2012. AirAsia had also announced in a statement that Peach Aviation, which is ANA's other low-fare venture, would not be competing with this new venture as Peach Aviation will not be based in Narita.

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