TOKYO, June 26 — Japanese e-commerce firm Rakuten Inc plans to take a sizeable stake in a new Japanese budget airline business set up by Malaysia’s AirAsia Bhd, domestic media reported.
Rakuten owns one of Japan’s top online travel service sites, Rakuten Travel, and a tie-up could help both companies expand their reach.
AirAsia is making its second attempt in the Japanese low-cost carrier market. A previous venture with ANA Holdings Inc was dissolved last June after it failed to win over Japanese travellers, and the partners disagreed over management strategy.
Under Japanese law, a local airline joint venture cannot be more than 33.3 per cent owned by a foreign firm.
AirAsia group chief executive Tony Fernandes and Rakuten CEO Hiroshi Mikitani will announce the deal on July 1 in Tokyo, the Nikkei business newspaper said.
The size of Rakuten’s stake in the company was unclear, business magazine Toyo Keizai said on its online site, but added that both AirAsia and Rakuten might invest up to a third each, leaving the rest to several Japanese companies. It did not cite any sources.
Rakuten said in a statement it had nothing to announce at present. AirAsia officials could not immediately be reached for comment.
A move by the companies would come at a time when Japan’s budget airline market is revving up. Three carriers started flights in 2012 and Spring Airlines Japan began operations recently.
Shares in Rakuten rose 3.3 per cent this morning, outperforming a 0.3 per cent rise in the broader Tokyo market. — Reuters
