Two major Japanese low-cost carriers, Vanilla Air and Peach Aviation, are reportedly merging
By MOOK Scenic Spots House, compiled and reported
Photo / Vanilla Air
Vanilla Air is 100% owned by ANA, while Peach Aviation has over 60% of its shares held by ANA. Due to fierce competition in the low-cost airline sector, the merger of Peach (ranked second) and Vanilla (ranked third) among Japan’s budget airlines is expected to push their combined revenue beyond that of the current market leader, Jetstar Japan.
The name of the consolidated entity has not yet been decided. Since Peach Aviation operates many flights to East Asia, it is expected to continue operating under the Peach Aviation name. The consolidation is anticipated to create stronger integrated capabilities in market and route planning, as well as marketing efforts. Consumers and travelers interested in the low-cost airline market should keep an eye on this development.
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