AlwaysAisle

Will AirAsia Japan (part 2) ever fly? AirAsia Japan (part 1) was formed by joint venture of AirAsia and ANA and started flying out of NRT on 2012, but joint venture was dissolved in 2013 and what left of AirAsia (part 1) is now Vanilla Air 100% owned by ANA Holdings.

AirAsia is attempting domestic Japan market again and formed another Air Asia Japan (part 2). Initial plan was to start NGO-CTS and NGO-TPE using two aircraft on 2015.

My understanding is that AirAsia Japan (part 2) already has two A320 aircraft and has already hired personnel. But inauguration of AirAsia Japan (part 2) was postponed four times already. When latest postponement of inaugural flight was announced on January this year, no specific date was given as to current target inauguration date of AirAsia Japan (part 2).

AirAsia seems to having not so good luck with Japan domestic market. Now Japan has few LCC; JetStar Japan, Vanilla Air, Peach Aviation, Spring Airlines Japan… Then there are AirDo, Skymark, StarFlyer, Solaseed Air, and Fuji Dream Air which are not defined as LCC. Not to forget two giants; ANA and JAL. The physical size of Japan and population concentrated in four largest cities (Tokyo, Osaka, Nagoya, and Fukuoka), how many airlines can coexist in Japan? The government is already started talks with small commuter airlines in Japan; Air Hokkaido (Sapporo), ANA Wings (Tokyo), Oriental Air Bridge (Nagasaki), Amakusa Airline (Kumamoto), and Japan Air Commuter (Kagoshima) about consolidation/merger and become part of ANA or JAL.

Is there any space for AirAsia Japan (part 2) in current domestic aviation in Japan? I also heard some analyzing that AirAsia is trying fit corporate culture of AirAsia in Malaysia into AirAsia Japan where it is not necessary good fit with corporate culture of Japan.

AlwaysAisle

Finally, second version of AirAsia Japan will start operation on Oct. 29, flight schedule will be NGO – CTS twice daily. Ticket sales has already started at 12 midnight on 17th.

Lowest fare shown is 4190 yen one way. However, till 22th there is limited quantity of promotional fare available for flights up to March 24, 2018 where one way NGO – CTS is 5 yen.

Air Asia Japan is also planning NGO-TPE flight.

Compare with first AirAsia Japan, this second version of AirAsia Japan seems to keeping low profile as far as media event is concerned.

AlwaysAisle

Now the fate of AirAsia Japan (Part 2) is in question.

Since restart of AirAsia Japan (Part 2) the airline grew to fly NGO-CTS/SDJ/FUK/TPE with three A320 aircraft. However, this month AirAsia Japan has flew NGO-CTS on 12th and 13th only so far. Now AirAsia Japan has officially announced that they will be no flights at all between Oct. 1 - 23 next months. There is now rumors of AirAsia Japan completely shutting down.

CEO of AirAsia Group Tony Fernandez said there is a need to review the business plan of AirAsia in Japan.

ainternational

I understand the convenience of NGO may be attractive but AirAsia has always been such a terribly Y only airline, I certainly can’t wait to not miss it.

shuigao

https://www.japantimes.co.jp/news/20...ions-december/

I guess the writing was always on the wall?

AlwaysAisle

Some are saying that corporate culture of AirAsia just did not blend in well in Japan.

At another airline, Jetstar Japan (joint venture between Japan Airlines, Qantas Group, and Tokyo Century Corp) is discontinuing KIX-FUK/KMJ/KCZ, NGO-CTS/KOJ, NRT-SYO, and same time closing pilot and flight attendant base at KIX. Just this September Jetstar Japan has provided early retirement package and long term leave package to pilots and flight attendants. Jetstar Japan will increase number of early retirement package and long term leave package available to employees.

Then at ANA, ANA has announced to their employees that there will be no bonus this winter. ANA is also planning to sell off some aircraft and eliminate unprofitable routes. President of ANA Group said in the press back in June that ANA will announce change in business outlook and business plan in July but nothing was announced in July. Finally ANA is indicating change in business outlook/plan.

AlwaysAisle

November 17, AirAsia Japan has filed bankruptcy proceeding at Tokyo District Court. AirAsia Japan had about 280 employees, employment of all but 30 employees were terminated on Nov. 4. Remaining 30 employees will work on administrative works associating with route closure and other items.

The filing with the court indicated that AirAsia Japan has total debt of 21 billion yen plus (US$ 201 million, € 170 million). Out of that 520 million yen (US$ 5.0 million, € 4.2 million) are ticket sales of cancelled flights, which refund is due. However, at this moment AirAsia Japan has no specific plan nor prospect of refunding those tickets. which the filing list 23400 people with ticket refund is due.