Posted on: 01 February 2011 by Ross McSweeny
All Nippon Airways (ANA) and First Eastern Investment Group of Hong Kong have finalised their joint venture (JV) agreement to invest in a new low-fare airline (LFA) based at Kansai International Airport.
A&F Aviation is the joint venture company the pair will establish to own and operate the new carrier. The initial capitalisation of the new company will be ¥30,050,000, composed of ¥10,050,000 from ANA, ¥10,000,000 from First Eastern Aviation Holdings and ¥10,000,000 from other investors. Before services begin, additional investment will be raised from domestic investors to a maximum of approximately ¥15 billion.
The new company, reports ANA, will apply for an Air Operator Certificate (AOC) and begin to build its brand with the aim of beginning low-cost operations in the second half of the next fiscal year. The CEO of the new company is planned to be Shinichi Inoue, currently vice-president, LCC joint venture project team of ANA.