Air Asia to exit Japan venture

Old Jun 11, 13, 12:36 pm
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Air Asia to exit Japan venture

Is this the beginning of the ponzi-air?


http://news.asiaone.com/News/Latest%...10-428855.html
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Old Jun 11, 13, 6:14 pm
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Hard to run a real LCC out of Narita. Expensive landing fee and the airport doesn't operate between 11PM and 6AM.

Plus I'm sure ANA and Tony Fernandes must have very different ideas on what is an acceptable level of service.
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Old Jun 11, 13, 6:32 pm
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Narita had waived or reduced fees to attract these LCCs. Suspect the reasons to be financial more than anything else..and as you said hard to do business with a third world mentality in Japan.
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Old Jun 11, 13, 7:15 pm
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The piece from Nikkei being quoted:

http://www.nikkei.com/article/DGXNAS...3A610C1EA1000/

Some of the points they raise: Load factors have been around 50-60% lately. The online reservations system was slow and wasn't fully translated into Japanese. AirAsia did not even attempt to sell through tour companies, which still control a large share of total sales in Japan. NRT is a pretty awful domestic hub because of its time/slot restrictions and distance from central Tokyo.

Interestingly Fernandes told Nikkei that no decision had been made, while ANA management told Nikkei that the decision was unofficial but basically final.

There was a further announcement yesterday that Peach (which is slated to basically take over AirAsia Japan) will start flying to NRT in October, though this will be to feed their somewhat more successful hub at KIX, which is open 24 hours and has tons of spare capacity.
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Old Jun 12, 13, 3:06 am
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Originally Posted by bzcat View Post
Plus I'm sure ANA and Tony Fernandes must have very different ideas on what is an acceptable level of service.
I talked to Tony about this very topic last year, and the regional strategy in general, and he admitted that it was difficult making NRT work in the Air Asia model. But, there was also NH execs in attendance during my visit and they seemed very impressed by Air Asia's operation, and the training center in particular.
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Old Jun 13, 13, 8:36 pm
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Its not about NRT- the business license in Japan needs to be renewed every year and the books must have been a sorry tale- unlike in south east asia where super aggressive forward accounting masks all.
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Old Jun 24, 13, 9:27 pm
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A new piece in Nikkei today:

http://www.nikkei.com/article/DGXNAS...3A620C1TJ2000/

ANA is going to keep the operation going as a wholly-owned subsidiary. AirAsia, for its part, still wants to run an LCC within Japan and is going to look for other partners to start a new venture (!)
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Old Jun 25, 13, 12:19 pm
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I know that's what Nikkei reported but why would ANA keep it as a separate subsidiary rather than combining it with Peach, which is their own LCC?
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Old Jun 25, 13, 6:00 pm
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Peach is not "their own." There are two other major investors, and as either of those investors I might not want my money going into a NRT domestic hub operation.
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Old Jun 25, 13, 6:23 pm
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Yet another Nikkei article with more details this morning:

http://www.nikkei.com/paper/article/...W3A620C1TJ0000

The airline will continue operating under the AirAsia brand through the end of October. ANA will announce its rebranding and future strategy sometime in July. Fernandes is talking to "four or five" potential JV partners in Japan and says that AirAsia Japan was running at 3x the cost levels of other AirAsia operations.
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