Japanese internet services giant Rakuten today confirmed taking an 18% stake in AirAsia Japan, a new budget carrier set to be launched by AirAsia.
The minority investment complements the company’s interest in the travel industry, as Rakuten is the parent company of Rakuten Travel, one of the most popular travel services in Japan.
AirAsia Japan plans to raise a total capital amount of 7 billion yen ($69 million) to support its launch following a failed attempt to enter the country through a tie-up with All Nippon Airways last year.
The start-up aims to begin services in about a year’s time with a fleet of five Airbus A320s, according to the carrier’s chief executive, Yoshinori Odagiri.
The airline will fly to both domestic and international destinations, but has yet to decide which airport it will be its base, Reuters reported.
The cost of the stake was not disclosed but a statement said: “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 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.