Japan's ANA considers establishing LCC to serve Asia

01-Jun-07. All Nippon Airways (ANA), Japans second largest carrier, said it is considering creating a LCC to serve Asia. A decision will be made by 2010, when Tokyos airports are set to finish runway expansions that could bring in more competition. "The cost structure of Asian (budget) airlines is half that of ours," ANA CEO, Mineo Yamamoto, said. "We are considering creating a low-cost company to serve Asia, because if one of them were set up in China it would pose a big threat to ANA". ANAs larger rival, Japan Airlines, recently started to code-share with Australian LCC, Jetstar, which has commenced services between Sydney and Kansai International near Osaka. "We can take advantage of the wait (for completion of the runway expansions) to study the creation of a low-cost company and decide whether to launch one or not," Yamamoto said. ANA already runs subsidiaries with niche markets, including a local LCC, Air Next, which it set up in 2004. Yamamoto said that ANA could also try to forge closer partnerships with other members of the Star Alliance.

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