Airlines ANA Group plans to expand LCC business

In the document, Japan’s largest airline group says it plans to expand the existing short-haul network of its two low cost subsidiaries Vanilla Air and Peach Aviation. Vanilla Air offers low cost flights from ANA’s main hub Tokyo Narita and Peach Aviation mainly operates from Osaka. Both airlines should work closer together and add new routes to their networks.

Additionally, both subsidiaries should commence own medium-haul low cost operations in 2020 as the report shows: “In addition, by entering the medium-haul LCC competition, at around 2020, Vanilla Air and Peach Aviation will capture demand to/from Asian marketplace which is showing remarkable growth. We expect the LCCs to play a role in ANA Group's growth strategies, while also contributing to Japan's tourist industry and the revitalization of Japan's regions. “

As a published map shows, new destinations for the medium-haul network should be in a circle of around 5000 kilometers around Japan which could even include destinations in Australia and India.

Therefore, ANA plans to introduce a new, small size medium-haul aircraft for the medium-haul low cost operations. As Vanilla Air and Peach Aviation both operate an Airbus A320 Family fleet, it seems to be possible that the airline plans to acquire Airbus A321LR. The entire low cost fleet of ANA Group should grow from 35 in 2017 to 55 in 2020.

With the new strategy, the Star Alliance carrier hopes to attract more customers by offering flights with its full service brand ANA and lower prices with the low cost brands Vanilla Air and Peach Aviation.

ANA is the largest airline in Japan beside Japan Airlines and operates domestic and international flights. The carrier operates a fleet with over 220 mostly Boeing and Airbus aircraft. In 2019, the airline will receive three A380 for its flights to Hawaii.