AirAsia to partner with Rakuten on Japan discount carrier

TOKYO, July 1 Tue Jul 1, 2014 1:12am EDT

TOKYO, July 1 (Reuters) - AirAsia Bhd will partner with online retailer Rakuten Inc to set up a discount carrier in Japan, marking the second attempt by the Malaysian budget carrier to expand in the Japanese market.

AirAsia's partners will also include Noevir Holdings Co Ltd , sporting goods company Alpen Co Ltd and Octave Japan Infrastructure Fund, AirAsia Japan CEO Yoshinori Odagiri told a news conference in Tokyo on Tuesday.

The carrier will fly both domestic and international routes, Odagiri added. Details about the how much the airline would cost and the partnership stakes was not immediately available.

AirAsia previously had a budget carrier joint venture in Japan with ANA Holdings Inc but they dissolved the partnership last year. (Reporting by Teppei Kasai and Tim Kelly; Editing by Miral Fahmy)