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ANA Establishing LCC Based at Kansai to Enter Domestic & Int’l Routes with Low Fares That “Overturn the Conventional Wisdom”

ANA Establishing LCC Based at Kansai to Enter Domestic & Int’l Routes with Low Fares That “Overturn the Conventional Wisdom”

Domestic departure gates at Kansai International Airport, where ANA will establish a LCC.

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On September 9, All Nippon Airways (ANA) officially announced that it will establish a low-cost carrier (LCC) based at Kansai International Airport in Izumisano, Osaka Prefecture with Hong Kong-based airline First Eastern (FE) this year that will begin serving domestic and international routes in the second half of 2011.

ANA will be the new airline’s largest stakeholder with a 39% stake and FE will have 33.3%. Other stakeholders will be Japanese investors. The company will be independent of ANA and have a different brand. It will aim to operate at low cost by having about five aircraft of the same efficient model and by offering simple service. An ANA spokesperson said it will offer “low fares that overturn the conventional wisdom.” The new airline will be mindful of competition for domestic routes from railways and highway buses, set itself apart from other carriers on international routes and offer fares that are 30% to 50% below current levels.

Details such as those regarding the structure of the business entity, routes and fares have yet to be decided. The LCC will be the first established by a major Japanese airline.

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