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Recorded at CAPA LCCs In North Asia, 7-8 Jun 2016

Vanilla Air CEO Update

Vanilla Air is looking to expand its presence in Taiwan, including with fifth freedom flights to Southeast Asia. Vanilla Air has upwards of six flights a day between Japan and Taiwan. Vanilla is still studying options to serve mainland China. Vanilla was one of the founding members of the Value Alliance, which it sees as a distribution alliance.

Transcript

Katsuyа Goto:Actually, this is not the base, but we would like to develop more network to and from Taiwan. That's the idea, because I know Taiwanese people very much love to visit Japan. So we really focus on Taiwanese market, and currently we are operating to Taiwan at maximum 6 frequencies per day, 4 between Tokyo Narita and Taipei, and 2 between Tokyo Narita and Kaohsiung. Yeah, so we do really focus on the Taiwanese market, and the last, at the end of April, we have already inaugurated from Taipei to Kansai route as well. And from coming this September, we will start from Taipei to Okinawa as well. So at that time, we have 4 routes, you know, already. And moreover, we will inaugurate another flight in the near future. It will be announced very soon. But anyway, so this is the idea behind the Taiwan base. Yeah. At this moment, we haven't had any nonstop route between Japan and mainland China. But of course, we know more and more people are visiting Japan. So we do would like to enter into the mainland China market as well. Yes, it's within our radar scope. As Yamamura-san, she told in front of the in the room. But the first thing is that. We can get more and more destinations with our partners network. That's the first thing. And also we do focus on the distribution because she already explained, but the customers can visit one site, then purchase not only our flight but also other partners' flight, and they can purchase the whole itinerary of tickets at that time, including ancillary products. This is very unique and this is an advantage of the alliance. So we would call it at this stage a distribution alliance. However, after that we will study and we have to introduce what we should do for our customers in terms of services or whatever. So that's the second thing that we have to consider. And we have to be careful to keep our cost level low.

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