All Nippon To Start Low-Cost Carrier

All Nippon Airways (ANA) will set up a low-cost carrier with Hong Kong and Japanese partners, with the goal of starting operations between October and next April.

The carrier will be based at Kansai International Airport and will begin flying with capital of up to ¥15 billion ($184 million).

But ANA will be a minority owner, at least at first.

The airline will be a joint venture with Hong Kong private equity company First Eastern Investment Group, which on Feb. 1 agreed with ANA to go ahead with the plan, and other, unnamed investors. ANA will contribute ¥10.05 million to the initial capital, First Eastern ¥10 million and the others ¥10 million. That amount will be increased to the ¥15 billion target with the participation of other Japanese investors, says ANA.

The operating company will be called A&F Aviation Co. Ltd., but the name of the budget carrier has not been disclosed.

“The new company will apply for an Air Operator Certificate and begin to build its brand with the aim of beginning low-cost operations in the second half of next fiscal year (April-March),” says ANA. “The CEO of the new company is planned to be Shinichi Inoue, currently vice president, LCC Joint Venture Project Team of ANA.”