• Kyodo News

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All Nippon Airways Co. will solicit capital from foreign airlines and investment funds in launching a low-cost carrier as early as next year as part of efforts to offer cheaper fares than its competitors, sources said Monday.

ANA also plans to invite investment from Japanese firms in other fields, including travel agencies and hotel operators, to differentiate the budget carrier from the ANA brand, the sources said.

The new carrier will be capitalized at more than ¥50 billion, with foreign investors expected to take a combined stake of less than 30 percent in line with laws that limit such investments to less than one-third of the capital, according to the sources.

ANA plans to take a stake of around 50 percent to become the top shareholder, with the remainder to be held by other domestic investors, they said.

The discount carrier, which will use small aircraft, will be based at Kansai International Airport and operate domestic flights as well as international flights serving the Asian region.

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