ANA and First Eastern conclude share holders agreement to invest in a new low-cost airline
01-Feb-2011 All Nippon Airways Co., Ltd. ("ANA") (LSE: ANA) and First Eastern Investment Group of Hong Kong have today finalized their joint venture agreement to invest in a new low-cost airline based at Kansai International Airport.
A joint venture company, A&F Aviation Co., Ltd., will be officially established and will own and operate the new carrier. The initial capitalization of the new company will be \30,050,000 comprised of: ANA yen10,050,000; First Eastern Aviation Holdings Limited (Hong Kong Corporation) yen10,000,000; Others yen10,000,000. Prior to the start of service, additional investment will be raised from domestic investors to a maximum of approximately yen15 billion.
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. The CEO of the new company is planned to be Shinichi Inoue, currently Vice President, LCC Joint Venture Project Team of ANA.