TOKYO: ANA Holdings Inc., which owns a majority stake in a Japanese discount carrier set up in partnership with AirAsia Bhd., said it is considering dissolving the tie-up.

Ending the partnership in the venture, AirAsia Japan Co., is one option and no final decision has been made, Megumi Tezuka, a spokeswoman for ANA, said by phone today. ANA may buy out AirAsia's 33 percent stake in the venture, which started flights last year, she said.

Tokyo-based ANA would continue operating the business as a low-cost carrier from Narita airport even if the partnership with AirAsia is dissolved, Tezuka said. ANA will acquire AirAsia's stake in AirAsia Japan, Nikkei reported earlier today, without saying where it got the information.

AirAsia Japan has five domestic services and also flies to to Seoul and Busan in South Korea. The airline began operations in August, following the start of services by discount carriers Peach Aviation Ltd. and Jetstar Japan Co.

ANA owns the 67 percent stake in AirAsia Japan not held by AirAsia, based in Sepang Selangor, Malaysia. AirAsia Group CEO Tony Fernandes couldn't be immediately reached for comment via mobile phone today.

ANA also has a stake in Peach. Jetstar Japan's shareholders include Japan Airlines Co. and Qantas Airways Ltd. -- BLOOMBERG