KUALA LUMPUR, Malaysia (AP) — Southeast Asia's top budget carrier, AirAsia, said Tuesday it may dissolve its partnership with Japan's All Nippon Airways Co. amid clashes over how to run their low-cost joint venture airline.
AirAsia said its Japanese affiliate has been facing challenges due to a "difference of opinion in management, most critically on the points of how to operate a low cost business" operating out of Tokyo's Narita airport.
AirAsia Japan, which is predominantly managed by staff from All Nippon Air or ANA, has failed to meet its business targets "due to the inability to manage costs" since its launch in August last year, it said in a statement.
ANA owns 51 percent of AirAsia Japan, with the rest held by AirAsia.
AirAsia said it remains optimistic about the success of a low-cost airline in Japan but it would not rule out any options "including dissolution of the joint venture."
"The parties are exploring all available options," and will make a final decision on this, it added.