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All Nippon Airways and　First Eastern Investment Group today announced the signing of a Memorandum of Agreement to establish the first Japanese low cost airline. The new airline will operate both international and domestic short-haul routes out of Kansai International Airport, Osaka. The new airline will operate independently from ANA.

The new company will be established in the second half of 2010 with Japanese investors holding a 66.7% stake of which ANA will hold a 39% stake and First Eastern will hold the remaining 33.3% stake, the maximum foreign ownership currently allowed for an airline in Japan. The new company’s air transport operations are expected to commence in the second half of 2011.

Shinichiro Ito, President and CEO of ANA, said, “Under our corporate vision of becoming the number one airline group in Asia, ANA has been steadily working to substantially improve its network between Japan and Asia. Regardless of the intense competition in the air transportation industry, we anticipate an increase in passenger traffic demand in East Asia, and came to the conclusion that a low cost carrier would be the right approach to compete effectively in this market. We are pleased to partner with First Eastern and to work together to establish the first low cost carrier in Japan.”

Victor Chu, Chairman and CEO of First Eastern said, “I am delighted to invest alongside ANA to establish the first low cost carrier in Japan, especially as my family has had strong ties with Japan for over 50 years. First Eastern has been pioneering private equity investments from Hong Kong for over twenty years and we are confident that our unique regional expertise and networks will contribute significantly to the success of our new joint venture with ANA.”

19 April, 2009 (Paris) — The International Air Transport Association (IATA) sharply criticized European governments for their lack of leadership in handling airspace restrictions in light of the Icelandic volcano eruption and urged a re-think of the decision-making process.

“We are far enough into this crisis to express our dissatisfaction on how governments have managed it—with no risk assessment, no consultation, no coordination, and no leadership. This crisis is costing airlines at least $200 million a day in lost revenues and the European economy is suffering billions of dollars in lost business. In the face of such dire economic consequences, it is incredible that Europe’s transport ministers have taken five days to organize a teleconference,” said Giovanni Bisignani, IATA’s Director General and CEO.

“Governments must place greater urgency and focus on how and when we can safely re-open Europe’s skies. This means decisions based on risk-management, facts and utilizing operational procedures that maintain safety,” said Bisignani.

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