ANA Holdings Inc., which owns a majority stake in a Japanese discount carrier set up in partnership with Malaysia-based AirAsia Bhd., said it is considering dissolving the tieup as it aims to improve sales of the domestic-based low-cost airline.

Ending the partnership in the AirAsia Japan Co. venture is one option and no final decision has been made, Megumi Tezuka, a spokeswoman for Tokyo-based ANA, said Monday. AirAsia Group chief Executive Officer Tony Fernandes said by email that he would comment "in due course."

ANA would continue operating the low-cost carrier from Narita airport even if the partnership with Malaysia's AirAsia is dissolved, Tezuka said. AirAsia Japan has struggled to fill seats in the face of stiff competition from other LCCs, including Peach Aviation Ltd., which is also partly owned by ANA, and Jetstar Japan Co., which also began flights in Japan last year. Japan Airlines and Australian carrier Qantas both have a stake in Australia-based Jetstar.