Peach and Vanilla join forces
Japanese carrier All Nippon Airways has announced the integration of its two airline subsidiaries Peach Aviation and Vanilla Air to become the leading low-cost carrier (LCC) in the Asian region.
The integration is planned to start in the second half of the fiscal year 2018, and is expected to be completed by the end of the following fiscal year (31 March 2019).
Peach has been designated as the merged carrier.
Following the integration, the airline will serve as a strong foundation for further fleet growth and network expansions from Osaka Kansai airport as well as from Tokyo Narita airport, says ANA.
ANA says 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 fiscal year 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.
By then, 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.
With target revenue of 150 billion Japanese yen and an operating profit of 15 billion Japanese yen for fiscal year 2020, the strategy will contribute to increased operational efficiency and reduction of unit costs. ANA group will maintain the strategic independence of the integrated LCC, and position the airline as an important pillar for greater profits and new opportunities for future expansion, and become the leading LCC in Asia.
Peach
Peach started its operations from Osaka in March 2012 as the first Japanese branded LCC. The carrier has been the leading carrier among the LCCs in Japan with its stable operational quality and its progressive management strategy.
Its fleet include 20 Airbus A320s that were manufactured between 2011 and 2017. All aircraft are under lease agreements with Avolon, GECAS, SMBC Aviation Capital, FGL, Jackson Square Aviation, Aviation Capital Group and Amentum-FPG.
All of its aircraft are powered with the CFM56-5B4/3 engine.
Vanilla Air
Vanilla Air started its operations from Tokyo 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. One of the significant landmarks of Vanilla's achievements is the revitalisation of local Japan destinations such as Amami-Oshima, by creating and carrying new leisure demand to the region. Vanilla has also played a big role in bringing a large number of inbound passengers to Japan from Asian countries such as Taiwan.
Its fleet include 15 A320s that were manufactured between 2013 and 2018. All aircraft are under lease agreements with DAE, SMBC Aviation Capital, FGL, Macquarie Airfinance, BOC Aviation and CALC.
All of its aircraft are powered with the CFM56-5B4/3 engines, except one A320 leased from BOC Aviation, which is powered by IAE V2527-A5 engines.
SMBC Aviation Capital is the lessor most exposed to the carriers with a total of nine A320s, according to Airfinance Journal’s Fleet Tracker.
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