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 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.
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.
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 (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.
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.