Rakuten likely to join hands with AirAsia

Rakuten likely to join hands with AirAsia

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AirAsia to join forces with Japanese e-commerce website Rakuten.

Japan based e-commerce website Rakuten is ready to set foot in the aviation business by joining hands with the biggest Asian budget airline – AirAisa. The e-commerce giant is planning to venture in to the Japanese unit of AirAsia possibly in 2015.

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The Toyo Keizai economic magazine on its online edition said that two or three more Japan based companies might also contribute cash in to AirAsia Japan. According to Toyo Keizai, one of the possibilities is that AirAsia and Rakuten could each get hold of a maximum of one-third Japanese unit’s shares and the remaining one-third will be retained by a combination of other Japan based firms.

Tony Fernades, the chief executive of AirAsia said that a news conference will most likely be held in Japan around July, 2014. NHK – the public broadcaster – said that talks are being held with an aim that Rakuten will acquire a stake of 15-19 percent which is a little above one billion yen.

The aviation law of Japan has limited the foreign equity stake in a Japanese airline to about one-third. The new carrier will operate flights linking the Chubu Centrair airport of Japan with some of the country’s other main destinations.

Ever since AirAsia’s inception into the Japanese market in 2012, it has been in the news for various mergers and acquisitions across the Asian market.

Photo Credits: Therakyatpost