Vanilla Air and All Nippon Airways deploy dual-brand strategy on Tokyo-Hong Kong route

LCCs are kickstarting growth between Hong Kong and Tokyo, a route that has seen relatively flat capacity in recent times but in Mar-2015 will be 27% larger than a year prior, making Hong Kong-Tokyo Asia's 15th largest international route based on seat capacity.

Mar-2015 seat capacity will be the highest in nearly a decade. LCCs in Mar-2015 will comprise 20% of seat capacity, up from zero a mere 18 months prior. HK Express will offer three daily flights - giving it more capacity than Japan Airlines - while Vanilla Air will have double daily services. Vanilla's bold growth comes as owner All Nippon Airways launches its own overnight flights to target the leisure segment. The dual-brand strategy between the two centres on ANA's Haneda base and full-service offering while Vanilla is low-cost and based at Narita.

ANA's growth will largely preserve its Hong Kong-Tokyo market share while Vanilla Air will help ANA grow. HK Express is also gaining in market share while Cathay Pacific and Japan Airlines, which do not have LCC units on the route, are losing share - although Cathay still accounts for about half of the market.