Japan\'s ANA to form low-cost

Japan\'s All Nippon Airways and Southeast Asia\'s largest budget carrier AirAsia on Thursday said they will form a joint venture to establish a low-cost airline. AirAsia Japan will be the first low-cost carrier to be based at Tokyo\'s Narita International Airport when it commences domestic and international operations in August 2012, the companies said. They cited Japan\'s aviation market as \"undergoing rapid transformation with developments including the expansion of Open Skies agreements and increased domestic competition from road and rail-based travel.\" AirAsia has other similar joint-ventures in Southeast Asia -- in Thailand, Vietnam, the Philippines and Thailand -- while its long-haul airline AirAsia X flies to Tokyo\'s Haneda airport. \"AirAsia Japan will not only boost economic growth between ASEAN and East Asia by providing better access to markets around the region, but also enhance links within travel, trade and tourism,\" Air Asia CEO Tony Fernandes said in a statement. ANA holds a 33.4 stake in budget carrier Peach, which aims to begin domestic services out of Kansai International Airport in the western Japanese city of Osaka in March 2012.