Loading
11-Feb-2011 9:31 AM

ANA establishes A&F Aviation as legal entity for new LCC

All Nippon Airways (ANA) stated (10-Feb-2011) A&F Aviation Co Ltd was established on 10-Feb-2011 as the legal entity for a new LCC (Reuters/Dow Jones, 10-Feb-2011). Other details of the new company include:

  • Executive news: Shinichi Inoue has been announced as CEO of the company. He has previously served as the head of ANA's Asia business strategy team;
  • Aim of company: The new company will be responsible for launching the LCC that will operate domestically in Japan and  the Asia Pacific;
  • Investment ratios: Japanese investors 66.7% (of which ANA holds less than 40%) and First Eastern 33.3%;
  • Near-term timeline: The brand will be launched after Mar-2011 and the company will commence operations in 2HFY2011;
  • Profitability: The company plans to be profitable on an annual basis in three years and to clear away accumulated debt in five years from launch. Mr Inoue added: "The first five years are crucial";
  • Fleet: The company plans to more than triple its fleet within five years to 16 aircraft, up from five aircraft initially. The aircraft will be configured with around 180 seats;
  • Passenger targets: The carrier aims for annual passenger traffic of 6.0 million within five years after  launch;
  • Base: Kansai International Airport;
  • Network: The company plans to operate to destinations within three to four hours' flying time from Kansai;
  • Cost focus: Mr Inoue stated the carrier will "focus heavily on cost, but that doesn't mean 'cheap and nasty". He continued: "Our (in-flight) service will be minimal and simple ... passengers can expect services but with additional charges";
  • Relationship to ANA: The airline will operate independently from ANA under a different brand name.

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More