Public-private investment fund Innovation Network Corp. of Japan said Thursday it has acquired 33.3 pct of outstanding shares in A&F Aviation, a low-cost carrier affiliated with All Nippon Airways <9202>, for 10 million yen.
The budget carrier, established last month, plans to raise up to 15 billion yen to launch flight services in the second half of fiscal 2011, which starts Friday. Besides ANA, a Hong Kong investment firm has already invested in A&F.
Innovation Network is considering additional investment, if necessary, to strengthen A&F’s financial standing. It aims to sell its stake in A&F in five to seven years when the carrier’s operations become firmly established.
The fund will dispatch an outside director to A&F to support its management.
A&F will initially operate five small planes, using Kansai International Airport near Osaka, western Japan, as its base. It plans to increase the number to 16 aircraft within five years with a view to serving six million passengers a year.