ANA finalises plans for a low-cost carrier

9 Feb 2011

All Nippon Airways (ANA), which Business Traveller earlier reported (see story here) was setting up Japan’s first low-cost carrier, has just finalised the co-venture with Hong Kong-based First Eastern Investment Group.

The name of the new airline has yet to be decided, but operations will definitely be based at Kansai Airport. In November, the carrier will begin domestic routes from Kansai Airport and will eventually expand to international routes by next year, particularly destinations in Mainland China although specifics have not been confirmed.

Victor Chu, chairman of First Eastern, said: “The Mainland market is a top priority because Japan is a compelling destination for the mainland people.”

Initial investment in the new company – A&F Aviation Co Ltd – stands at JPY 30.05 million (US$365,000). Chu said that the new low-cost airline would offer fares that are at least 50 percent lower than other carriers operating domestic routes in Japan, and rely on low operating costs and short haul services to keep it viable.

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Alisha Haridasani

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