Peach Aviation and Vanilla Air merge to become the leading LCC in Asia

Airbus A320 Peach Aviation Photo by Masakatsu Ukon/Flickr

ANA Group has announced today the integration of its two subsidiary airlines, Peach Aviation and Vanilla Air, with the goal to become the leading low-cost carrier in the Asian region.

The process of full integration is planned to start in the second half of 2018, with the target to be completed by the end of 2019, with Peach being designated as the basis of the integrated airline.

Following the integration, the airline will serve as a strong foundation for further fleet growth and network expansions from Osaka-Kansai (KIX) as well as from Tokyo-Narita (NRT) airports. In addition, the airline will stimulate potential demand in Japan and from abroad through attractive service, various innovations and fares that exceed expectations.

Peach Aviation started its operations from Osaka-Kansai (KIX) in March 2012 as the first Japanese branded LCC with the concept of “The Flying Train (safe, easy and cheap).” Peach has been the leading carrier among the LCCs in Japan. Vanilla Air started its operations from Tokyo-Narita (NRT) in December 2013. With the help of the huge demand in the Tokyo metropolitan area, the carrier actively expanded its network of domestic and international routes.

The integration will combine and further enhance the strengths the two LCCs have today and will create a stronger competitive advantage to further promote not only the Japan domestic service but also capture the strong demand for visitors to Japan. Beyond 2020, the airline plans to have more than 50 aircraft operating on more than 50 routes, up from the 35 aircraft today and the 39 routes currently served. Also, the integrated LCC plans to enter the mid-haul LCC market to aggressively incorporate the growing travel demand in Asia, and will also contribute to the Japanese government’s goal of 40 million people visiting Japan in 2020.

— ANA Group