Category Archives: Peach Aviation (Japan)

ANA to establish a low-cost 300+ seat 787 brand based on the Air Japan unit, will retire 22 Boeing 777s

ANA Holdings has announced transformative measures to a new business model, designed to strengthen the company’s operations and position itself for future growth. Through the ongoing crisis, ANA has taken steps to independently maintain our business operations, ranging from the suspension of flights to cost cutting measures. However, as the outbreak of COVID-19 is yet to settle, the ANA Group will carry out structural business reforms to address how travel has changed to build resilience toward any future global risks.

Overview
Qualitative and Quantitative Shifts in Air Travel Demand

  • ① Demand from business travel will decrease and likely not fully return to previous levels due to changes to the nature of work, such as the widespread popularity of online conferences and meetings.
  • ② Demand for leisure and visiting friends and relatives (VFR) will likely continue to remain robust, with potential growth from new segments including new working environments and multiple residency.
  • ③ New potential for demand is expected from untapped markets with preference for greater hygiene during travel, airlines with high ESG policies, adoption of contactless and automated options, simplistic services as well as more customization options.

“ANA HD is embarking on an ambitious transformation that will strengthen operations and position it for long term growth and success in a market still reeling from COVID-19,” said Shinya Katanozaka, President and Chief Executive Officer of ANA HOLDINGS INC. “As we work to fully account for the current situation, we will introduce a new business structure based on two major strategies. This comprehensive transformation initiative is not simply about cutting costs, instead it will address how travel has changed so that ANA HD has a framework for an entirely new, future-oriented operational strategy.”

  • 1. Transform the Group Airline Business Model

    • ・In addition to ANA and Peach Aviation Limited, establish a third airline brand based on the Air Japan unit, and pursue sustainable growth through transforming the services of the Group’s airlines to cater to a wider range of customer needs in price range and services.
    • ・Transform the services of each airline to match the values of the “new normal” during and post COVID-19, and through strengthening the cooperation in its marketing activities and smooth migration among the brands, actively promote measures to maximize the lifetime value of our customers.
  • ① ANA brand

    • ・As the premium airline brand of the ANA Group, transform into an airline that places an emphasis on “universal service” by providing new products and services that meet the needs of the post-COVID customers as a brand that is considerate to the well-being of people and the environment.
    • ・Utilizing digital technology, promote integrated services with a focus on “personalization” and “customized service.”
    • ・Realize a growth model that can continuously generate profits in the post-COVID era by improving productivity with more automated operations and improving work efficiency.
  • ② Peach Aviation

    • ・In addition to the existing leisure demand, expand the customer base to business passengers and families through wider cooperation in marketing with ANA through the addition of initiatives such as the exchange of ANA mileages to Peach Aviation’s points.
    • ・Further develop the Peach Aviation business by increasing cooperation with regional entities on new work and vacation styles and the utilization of customer information in promoting social media activity.
    • ・With its relocation to Terminal 1 at Narita Airport on October 25, expand demand through its improved convenience and synergies with ANA for travelers around the Tokyo metropolitan area.
    • ・Expand the medium-distance international routes with new A321LR aircraft-based products/services.
    • ・Enter the air cargo business in collaboration with ANA and ANA Cargo (ACX).
  • ③ New Airline Brand

    • ANA Group will establish a third airline brand around fiscal 2022, to raise profits by targeting demand for low-cost, medium-distance flights to destinations in Southeast Asia and Oceania.
    • ・By using the current Air Japan entity as the foundation, the brand will be capable of responding to sudden changes in demand and begin operations quickly after its establishment.
    • ・Low unit cost operations will be delivered on this brand through the utilization of the 787 aircraft configured with 300+ seats.
  • 2. ANA Group’s Transformation to a New Business Model

    • ・ANA Group will launch a data platform business based on the point-of-contact with all of our customers that we engage with in the airline business, travel business and business from our ANA branded credit cards to increase profits from our non-airline operations.
    • ・Through employing the strategies ANA Group has accumulated for more than 10 years from its regional and metropolitan businesses, redefine the business in regional areas and by making use of a wide range of resources, deliver value to both the local regions and ANA.
  • ① Realization of a New Data-Driven Platform Business

    • ・Led by ANA X, create a data platform business that best utilizes the customer data accumulated from the ANA apps, website and other digital touchpoints of the ANA Group.
    • ・With a focus on the airline, travel and ANA branded credit card business with transaction volume of approximately 4 trillion yen (based on 2019 figures), create value beyond the airline operations by maximizing the lifetime value of our customers through all businesses of the ANA Group.
  • ② Reorganization and Digitization of the Travel Business

    • ・ANA Sales Co., Ltd. will be split off, and its travel business unit will be merged with ANA X Co., Ltd., to build a data-driven platform business unit (aimed to launch in April 2021).
    • ・Digitizing the travel business will help the customers be introduced to ANA Group’s platform business.
  • ③ Evolve the Airline Sales Business to a Regional Business Development Entity

    • ・The efficiency of the airline sales business at ANA Sales will be improved and in addition, the unit will evolve into a regional business company that will serve a range of trade purposes and raise the presence of the ANA Group and develop new attractions in regional areas. The unit will develop goods and services for a digital platform in each local area and deliver ANA Group goods and services to each region simultaneously as well.
  • 3. Temporary Downsizing of Operations, and Other Measures to Offset the Impact of COVID-19

    • ・Through reviewing the cost structure to overcome the COVID-19 crisis, ANA Group will strategically plan a profitable route network and temporarily reduce the scale of the airline operations by further cost cuts centered on fixed costs such as reducing the aircraft fleet.
    • ・To transform into a new business model and position us for future growth, we will implement various measures to protect jobs.
    • ・The cost reduction effects is expected to be approximately 150 billion yen* for this fiscal year, and approximately 250 billion yen* in fiscal 2021.

      • *Comparison with our initial plan for FY2020 with total cost cut impact from reducing fixed costs.

1) Review and adjust the scale and route network of the Group’s airline operations

  • ① ANA brand

    • ・International route network: Based on the immigration control, public health quarantine measures and passenger demand, resume operations on routes from Haneda Airport. Position Narita airport as a key location as well, and gradually resume operations.
    • ・Domestic route network: Prioritize the operations and business centered around destinations with higher demand, and manage the scale of operations through utilizing smaller aircrafts.
  • ② Peach Aviation brand

    • ・International route network: Resume operations flexibly based on trends in demand.
    • ・Domestic route network: Through maximizing the strengths as a LCC and strategically differentiating with ANA, prioritize the operations and business centered around Kansai and Narita. In December 2020, expand network at Chubu airport.

2) Reform the Cost Structure Focusing on Fixed Costs

  • ① Downsize fleet through reducing large-sized aircrafts

    • ANA will retire a total of 35 aircraft in 2020, an addition of 28 aircraft from its initial plan of seven.
    • ・Out of the 35 aircrafts to be retired, 22 are the Boeing 777 models. The delayed delivery is for one Boeing 777 and one A380 aircraft, resulting in a reduction of 24 large-sized aircrafts compared to the initial plan for the end of FY2020.
    • ・The entire ANA Group’s fleet, including Peach Aviation, will be reduced by 33 aircraft compared to the initial plan for the end of FY2020.
    • ・Investments on capital expenditure will be reduced or delayed for preexisting orders of aircrafts.
  • ② Cost reduction in procurement

    • ・Centralize procurement functions on goods for inflight services, maintenance components, vehicles and expendable goods to cut costs and raise efficiency in the negotiation and purchasing process.
    • ・Through centralizing the procurement functions, improve the accuracy in purchasing, delivery, and warehouse management.
  • ③ Cost reduction in office space rent

    • ・Reduce office space rent by downsizing and consolidating offices based on the usage level of each office from the changed work styles.
  • ④ Review unprofitable businesses and assets

    • ・Dissolve the PanAM International Flight Academy in USA.
  • ⑤ Increase cooperation among the maintenance units

    • ・Deepen the cooperation between ANA, Peach Aviation and partner airlines to build a productive maintenance structure.

3) Measures to Maintain Employment for Future Growth
ANA Group will reduce labor costs through shifting outsourced business to in-house development and temporarily relocating employees internally and externally, and protect the laborforce for future growth.

  • ① Shift outsourced business to in-house development

    • • Shift to in-house management of previously outsourced tasks such as the maintenance of aircrafts and engines, ground handling at airports and maintenance facilities.
  • ② Reorganization and relocation of staff within the ANA Group

    • • Maximize efficiency and productivity through the relocation of staff among different airports, locations and business units.
  • ③ Dispatch ANA Group employees to external entities

    • • Dispatch employees to improve hospitality and service skills to companies with a laborforce shortage.
    • • The jobs at the external entities will be call center work, hotel concierge, reception and secretarial jobs, and by December 2020, we plan to dispatch about 100 employees to 10 companies. We will continue to expand the scale and expect more than 400 employees to be dispatched by next spring.
  • ④ Measures related to wages

    • • Curb wage-related costs through a proposal to the labor union on reducing wages, bonuses, expansion of unpaid leaves and other measures.

Air Lease Corporation announces lease placement of two new Airbus A320neo and two new A321neo LR aircraft with Peach

Air Lease Corporation announced today long-term lease placements for two new Airbus A320neo and two new Airbus A321neo LR aircraft with Peach Aviation Limited (Japan).

The four new Airbus aircraft are scheduled to deliver to Peach starting in 2020 through 2022 from ALC’s order book with Airbus.

In related news, Peach Aviation Limited announced the conclusion of a contract to install the LEAP-1A engine manufactured by CFM International to power a total of ten aircraft – eight of which are the Airbus A320neo model while the other two are A321LR middle-haul models – from fiscal 2020.

These LEAP-1A engines are projected to boost fuel efficiency by 15% compared to existing versions, while also bolstering comfort by reducing noise. This latest engine also enables us to curtail our nitrogen oxide (NO x) and Carbon dioxide (CO2) emissions.

The CFM56 manufactured by CFM is currently mounted on Peach’s A320ceo aircraft. The recent adoption of the LEAP-1A engine for our A320neo and A321LR planes marks our second engine type to be adopted from CFM.

ANA Holdings to order 48 Airbus and Boeing narrow body aircraft for ANA and Peach

ANA Holdings voted today at its board meeting to place an order for a total of 48 aircraft, which include 30 Boeing 737 MAX 8 and 18 Airbus A320neo. Deliveries are scheduled from FY2021 to FY2025.

The decision was based on the economic growth of Asia and emerging countries, with demand in the Asian aviation market and inbound demand on the rise. ANA HD and Peach Aviation Limited each selected its own optimum aircraft to fit its strategy to further grow. The specific markets that will be served by the new order have not been finalized.

Boeing 737 MAX 8, a first for a Japanese airline, is more spacious compared to the current aircraft and creates a comfortable atmosphere. The aircraft is also fuel efficient and is expected to improve the efficiency by approximately 15%. Given the plane’s benefits to the domestic market, it will succeed the current Boeing 737 NG series. ANA HD decided to place 30 aircraft on order, including 10 optional.

The Airbus A320neo, which currently serves ANA international routes, was chosen for its excellent fuel efficiency and cruising performance to support Peach’s current strategy, and an order for 18 aircraft will be placed.

ANA Group will maintain safety, which is the foundation of ANA Group’s business, enhance customer-oriented quality and service, and proactively invest to aircraft to steadily implement growth strategy.

Peach Aviation to become first Airbus A321LR operator in Asia

Peach Aviation is set to become the first Asian operator of the Airbus A321LR aircraft, following the conversion of an existing order for two A320neo aircraft.

The aircraft will be joining the fleet of the Osaka-based low cost carrier (LCC) in 2020. The A321LR is the longest-range single-aisle aircraft in the world and will enable Peach Aviation to open new routes from Japan  to destinations of up to nine hours flying time.

A signing ceremony took place at Farnborough Air Show, attended by Shinichi Inoue, Peach Aviation Managing Director and CEO, and Eric Schulz, Airbus Chief Commercial Officer.

The A321LR features a new door configuration, enabling its operators to accommodate up to 240 passengers in Airbus’ widest Single Aisle fuselage in the sky. The new Airspace by Airbus cabin available on the A320 Family additionally enhances the passengers’ unrivalled travel experience.

Incorporating the latest engines, aerodynamic advances, and cabin innovations, the A321neo offers a significant reduction in fuel consumption of 20 percent by 2020. With more than 1900 orders received from over 50 customers, to date the A321neo has captured some 80 percent of market share, making it the true aircraft of choice in the Middle of the Market. The LR option extends the aircraft’s range to up to 4,000 nautical miles (7,400 km) and brings with it a 30-percent reduction in operating cost compared to its nearest competitor.

Images: Airbus.

ANA to merge Peach and Vanilla

Peach Aviation (Japan) Airbus A320-214 JA817P (msn 6824) NRT (Michael B. Ing). Image: 934246.

ANA – All Nippon Airways is planning to merge its partly-owned low-fare Peach Aviation and fully-owned Vanilla Air subsidiaries by March 2020. Peach will be the surviving brand.

The new Peach will be Japan’s largest budget airline.

ANA is also planning to expand its ownership in Peach from the current 67 percent to 77.9 percent.

Peach is planning to expand its fleet to more than 50 aircraft after the merger.

ANA issued this statement on March 22, 2018:

To further build on the respective successes of Peach Aviation Limited (Peach) and Vanilla Air INC. (Vanilla) and position them for future growth, ANA Holdings has announced the integration of its two subsidiary airlines, Peach and Vanilla, with the goal to become the leading low cost carrier (LCC) in the Asian region. The process of full integration is planned to start in the second half of the FY2018, with the target to be completed by the end of FY2019, 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 Airport as well as from Tokyo Narita Airport. In addition, the airline will stimulate potential demand in Japan and from abroad through attractive service, various innovations and fares that exceed expectations.

History of the two LCCs:

Peach Aviation started its operations from Osaka Kansai Airport in March 2012 as the first Japanese branded LCC with the concept of “The Flying Train (safe, easy and cheap).” The carrier has raised the value of its customer experience through a number of ideas that were revolutionary to the aviation industry. Peach has been the leading carrier among the LCCs in Japan with its stable operational quality and its progressive management strategy.

Vanilla Air started its operations from Tokyo Narita Airport 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 revitalization 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.

Purpose of the Integration

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 FY2020, 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 FY2020, 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 FY2020, 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 Route Map:

Vanilla Air Route Map:

Top Copyright Photo: Peach Aviation (Japan) Airbus A320-214 JA817P (msn 6824) NRT (Michael B. Ing). Image: 934246.

Peach aircraft slide show:

Vanilla Air aircraft slide show:

Bottom Copyright Photo: The Vanilla Air brand will be slipping away. Vanilla Air Airbus A320-214 WL JA06VA (msn 6320) NRT (Michael B. Ing). Image: 934241.

Vanilla Air Airbus A320-214 WL JA06VA (msn 6320) NRT (Michael B. Ing). Image: 934241.

Peach to launch Tokyo (Haneda) – Taipei (Taoyuan) service

Peach Aviation (Osaka-Kansai) has announced it will launch a new route connecting Tokyo (Haneda) and Taipei (Taoyuan) starting on August 8.

Read the full report from our partner ZipanguFlyer: CLICK HERE

Peach logo

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-214 JA807P (msn 5440) arrives in Tokyo at Narita International Airport (NRT).

Peach route map:

Peach 6.2015 Route Map

Peach aircraft slide show: AG Airline Slide Show

 

 

 

AG Aviation friend

 

Peach Aviation orders three Airbus A320s

Peach A320-200 F-WWIQ (JA801P)(11)(Tko) TLS (Airbus)(46)

Peach Aviation (Osaka-Kansai), Japan’s Low Cost Carrier (LCC), has signed a firm contract with Airbus for the purchase of three A320s. A signing ceremony was held today at the Paris Air Show, with presence of Peach Aviation President Shinichi Inoue and Airbus Chief Operating Officer-Customers, John Leahy.

This is Peach’s first direct order from Airbus. Peach Aviation currently operates 14 leased A320s, with three more to be delivered on lease. Peach Aviation’s A320 seats 180 passengers in a single-class layout and will be powered by CFM International engines.

To date, the A320 Family has won more than 11,700 orders and over 6,500 aircraft delivered to more than 300 operators worldwide.

Photo: Airbus. The pictured Airbus A320-214 F-WWIQ (msn 4887) became JA801P on delivery.

Peach Aviation aircraft slide show: AG Airline Slide Show

Peach to add a Sendai hub in the summer of 2017

Peach Aviation (Osaka-Kansai) is planning to add a fourth hub at Sendai for the summer of 2017 according to ZipanguFlyer. Sendai is located in the northeast section of Japan. Peach currently serves Sendai with a single route from its Osaka (Kansai) hub.

The Sendai Airport was involved in the devastating March 11, 2011 Tōhoku earthquake and then was subsequently flooded by the tsunami that hit the coast of Japan in this area.

The rising waters flooded the tarmac, taxiways and runway of the airport. The flood waters actually reached parts of the second floor of the passenger terminal.

Read the full story: CLICK HERE

Copyright Photo: Manuel Negrerie/AirlinersGallery.com. Airbus A320-214 JA805P (msn 5304) with Mariko Sinoda on the fuselage arrives in Taipei.

Peach aircraft slide show: AG Airline Slide Show

Route Map:

Peach 3.2015 Route Map

Peach to build a third hub at Tokyo Narita

Peach Aviation (Osaka-Kansai) has designated Tokyo (Narita) as its third hub after Osaka (Kansai) and Okinawa (Naha) according to ZipanguFlyer. The carrier will launch two new routes from Narita to Fukuoka and Sapporo (New Chitose) on March 29.

Peach expands in Tokyo Narita

Read the full report: CLICK HERE

Copyright Photo: Gerd Beilfuss/AirlinersGallery.com. Airbus A320-214 JA810P (msn 5724) was delivered new on August 5, 2013.

Route Map:

Peach 2.2015 Route Map

Peach aircraft slide show: AG Airline Slide Show

AG Each photo carefully selected

Peach to add the Okinawa-Hong Kong route on February 21, 2015

Peach Aviation (Osaka-Kansai) has announced it will launch the Okinawa-Hong kong route on February 21 with four weekly flights.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A320-214 JA807P (msn 5440) completes its final approach to the runway at Tokyo’s Narita International Airport.

Peach aircraft slide show:

Peach Route Route Map:

Peach 11.2014 Route Map