Rakuten has agreed to acquire an 18% stake in AirAsia Japan, the new low cost carrier (LCC) set to be launched in Japan by AirAsia, Asia's biggest LCC, the Japanese Internet services company announced today.
AirAsia Japan plans to raise a total capital amount of 7B JPY (SGD 800 million).
Through this investment, Rakuten aims to accelerate the development of its travel services, particularly in the rapidly growing Southeast Asia region, and to play its part in stimulating the travel industry as a whole, Rakuten said in a statement.
In Japan, the LCC market has grown steadily since March 2012 when LCCs began flying domestic routes, and it is expected to expand even further.
AirAsia has been one of the leading LLCs. The airline operates 208 routes in 18 countries throughout Asia and Australia. The total number of passengers AirAsia has carried since it began operations has reached approximately 220 million.
Rakuten is the parent company of Rakuten Travel, one of the most popular travel services in Japan, with 29,250 member hotels. The business operates 17 offices in Japan and 20 additional offices across 12 markets overseas.
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