This case presents the situation in which Tony Fernandes, the chief executive officer (CEO) of AirAsia Group of Companies, had to decide whether to re-enter the Japanese aviation market. In August 2011, Fernandes entered Japan with his no-frills low-cost carrier (LCC) by establishing AirAsia Japan (AAJ) in partnership with All Nippon Airways (ANA), Japan’s largest full-service carrier. With around 6,800 islands in Japan, there was potential for a large number of tourists to be drawn in, and air travel was the only link between these islands and the rest of the world. However, the partners ended their collaboration two years later because of growing conflicts and poor performance. The imperative for re-entry arose with the Japanese government’s initiatives to bolster tourism, which was further augmented by its announcement of hosting the Olympics in 2020. This case provides information on the circumstances leading to AirAsia’s initial entry and exit from the market, as well as the current situation in Japan. It offers an opportunity for MBA or executive education participants to put themselves in Fernandes’ shoes and decide whether or not to re-enter the Japanese market.