All Nippon, First Eastern to Start Low-Fare Carrier

All Nippon Airways Co., Asia’s largest listed carrier by sales, will team with a Hong Kong investor to set up a discount airline amid rising demand for budget travel.

The carrier will be based at Kansai International Airport in Osaka and will start flying in the second fiscal half of 2011, All Nippon, also known as ANA, said in a statement in Tokyo today. ANA will hold a 39 percent stake in the venture, while Hong Kong-based Victor Chu’s First Eastern Investment Group will own 33.3 percent, the maximum foreign ownership permitted in Japan.