All Nippon and JAL: widebody LCCs to broaden international offering

COVID-19 has prompted major strategic reviews by Japan's two largest airlines, and one of the most significant results is an increase in focus on LCCs. This includes the establishment or expansion of widebody low cost operations to serve international markets.

Both All Nippon Airways and Japan Airlines are trimming back their mainline fleets by advancing the retirement of widebody aircraft. In contrast, their LCC units are being boosted.

This reflects changes in demand outlook that the airlines foresee. Premium business travel is expected to remain weaker for longer, with leisure traffic and travel for friends and family visits predicted to bounce back faster when border restrictions are eased. ANA believes - as do many other airlines - that virtual meeting technology will be a long term drag on business travel.