Vanilla Air to continue conservative growth while pivoting towards the international market

All Nippon Airways' second attempt at a Tokyo-based LCC remains a conservative effort. Vanilla Air, the re-branded AirAsia Japan, now operates six A320s, up from the peak of five that AirAsia Japan operated.

Vanilla is planning for a fleet of 10 A320s in Mar-2016, representing significantly slower growth than seen at Japan's two other new LCCs, Peach and Jetstar Japan. The majority of Vanilla's ASKs are in the domestic market, but within five years the carrier expects to derive 70% of revenue from the international market.

Vanilla Air will shortly add its fourth domestic destination, Amami, while the international market is experiencing some setbacks. Vanilla would like to add services to Taipei but the carrier has been unable to secure slots. Taiwan and Korea have been popular short-haul markets from Japan, but the Japan-Korea market continues to experience a setback due to tension.