New York (AirGuideBusiness - Business & Industry Features) Tue, Jun 25, 2013

ANA will buy AirAsia out of a Japanese budget airline ANA will buy AirAsia out of a Japanese budget airline joint venture for JPY[acute accent]2.45 billion (USD$25.11 million), the Malaysian low-cost carrier said, dissolving a loss-making alliance after less than two years. The venture, based at Tokyo's Narita airport, has failed to win over Japanese passengers since it was set up in August 2011. ANA, which owns 67 percent of the venture, has blamed the poor performance of AirAsia Japan on ineffective marketing and a non user friendly booking website. Differences in opinion on issues ranging from cost management to where the business should be based contributed to the breakup, AirAsia said in a statement on Tuesday. The split comes at a time when AirAsia is planning to expand overseas. The pullout from the venture, however, is consistent with AirAsia's past decisions to drop loss-making routes. "I remain positive on the Japanese market and believe there is tremendous opportunity for a low-cost carrier to succeed," AirAsia Group chief executive Tony Fernandes said in the statement. "We have not given up...

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