ANA and HK investor to establish budget airline joint venture

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TOKYO, Japan – All Nippon Airways Co. said Tuesday that it will establish its low-cost airline joint venture with a Hong Kong investment firm in mid-February under the name A&F-Aviation Co.

The new company will be capitalized at 30.05 million yen, funded by ANA, First Eastern Investment Group and others.

A&F-Aviation will change its name later to bear the low-cost carrier’s brand and move its headquarters to the Kansai region. As the firm prepares to launch service in the second half of fiscal 2011, its capital will be raised to as high as 15 billion yen.

The budget airline is considering offering domestic service, as well as flights between Japan and China in addition to other overseas destinations. Its fares are expected to be around half those of major carriers.

Shinichi Inoue, head of ANA’s preparatory team for the joint venture, will depart to become its chief executive officer.