All Nippon Airways Co., Ltd. ("ANA") (LSE: ANA) and First Eastern Investment
Group of Hong Kong have today finalized their joint venture agreement to invest
in a new low-cost airline based at Kansai International Airport.


A joint venture company, A&F Aviation Co., Ltd., will be officially
established and will own and operate the new carrier. The initial capitalization
of the new company will be 30,050,000 comprised of: ANA ¥10,050,000; First
Eastern Aviation Holdings Limited (Hong Kong Corporation) ¥10,000,000;
Others ¥10,000,000. Prior to the start of service, additional investment
will be raised from domestic investors to a maximum of approximately ¥15
billion.


The new company will apply for an Air Operator Certificate and begin to build
its brand with the aim of beginning low-cost operations in the second half of
next fiscal year. The CEO of the new company is planned to be Shinichi Inoue,
currently Vice President, LCC Joint Venture Project Team of ANA.