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All Nippon Airways adds Austrian & Swiss to JV, and eyes acquisitions, as Japan & France liberalise

Analysis

While Japan attracts attention for the three new lost-cost carriers being established there this year, there are also significant changes under way in its long-haul and full service carrier space that are occurring independently but also consequent to the LCC movement.

All Nippon Airways (ANA) intends to have Lufthansa group carriers Austrian Airlines and Swiss International Air Lines join its Japan-Europe joint-venture with Lufthansa German Airlines. The combined entity will control 33% of Japan-Europe traffic, the largest share of any immunised alliance. This will bolster ANA as it intends to grow its long-haul network, relying less on its LCC-invaded short-haul network, and is also a move against Japan Airlines (JAL), which is strengthening its position with International Airlines Group (IAG), and perhaps Finnair in due course.

ANA's stated intentions to consider acquiring foreign carriers, including LCCs, and lending management advice could further revolutionise Japanese aviation, but not without perhaps significant implications for any acquired airline.

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