ANA Pulls The Plug: AirJapan Grounded After Just 2 Years

In a move designed to optimize its brand portfolio, All Nippon Airways (ANA) has announced that it is phasing out its AirJapan brand. The Japanese airline group has been positioning AirJapan to compete in the long-haul low-cost carrier (LHLCC) segment, which has seen steady growth in Asia. However, its growth has been stunted due to aircraft delivery delays to its parent.

AirJapan only began flying in February last year, using a fleet of two Boeing 787-8s on three routes from Tokyo Narita Airport. Despite bold plans for growth, ANA has now decided to move forward with a dual-brand strategy. This will see it retain ANA as the legacy full-service brand, and Peach Aviation (simply known as “Peach”) as its regional low-cost subsidiary.

Ongoing Supply Chain Issues Stunt Growth

Credit: ANA Holdings

ANA originally unveiled plans to launch a low-cost carrier on longer haul routes in 2020, utilizing Boeing 787-8s that it would lease from ANA. The move was seen as a reaction to the launch of ZIPAIR Tokyo earlier that year, the LHLCC owned by ANA’s arch-rival, Japan Airlines. But in reality, it was just as much a reaction to the appearance of numerous other regional LHLCCs in recent years such as Scoot, AirAsia X, and Jetstar.

Since launching its first three routes last year, AirJapan’s plans to expand its network have been hampered by a lack of new aircraft and ongoing supply chain issues among ANA Holdings carriers. Notably, ANA itself is battling issues on multiple fronts, including engine reliability issues on its Boeing 787s and Airbus A320neo family jets, as well as delays in the delivery of new Boeing 737 Max and Boeing 777-9 aircraft.

In a statement published earlier today, ANA Holdings alludes to these ongoing challenges among the reasons for shuttering AirJapan:.

“To optimize the allocation of the group’s resources, ANA Group decided to suspend the AirJapan brand. Its aircraft and human resources will be consolidated into the ANA brand’s operations to expand its international business.”

Where And When The Impact Will Be Felt

Credit: ANA Holdings

ANA has said that AirJapan will operate its final flights at the end of its winter schedule in March, and then its staff and two 787-8s will be merged back into ANA’s operations. The carrier currently flies daily to Seoul’s Incheon International Airport, Bangkok Suvarnabhumi Airport, and Singapore Changi Airport, and its final flights will be the return legs from each of those destinations on March 28/29.

The news of the closure of AirJapan is not entirely surprising, given that it has not added a new route in over a year. However, there had been some signs of potential growth. Last month the carrier announced that it will be introducing daily flights from Singapore, up from the current five days a week, based on the anticipated arrival of a third Boeing 787.

It has also been competing in a LHLCC market that has healthy growth across Asia. Its most comparable competitor, ZIPAIR Tokyo, has certainly been expanding. It added its fifth North American destination earlier this year with a new route to Houston, and announced further fleet growth with delivery of ten 787-9s set to begin in 2027. In light of this, it appeared that AirJapan had similar opportunities for success, but ANA has other plans.

Peach Continues On In A Dual-Brand Strategy

Credit: ANA Holdings

What isn’t changing is ANA’s continued operation of Peach. The low-cost subsidiary began flying in 2012, and has grown to operate over 40 domestic and regional international routes. The carrier uses an all-Airbus fleet, having started with A320-200s, and more recently adding A320neo and A321neo aircraft.

Peach was the first airline in Japan to take delivery of the Airbus A321LR, and it currently has three examples that it uses for its longest routes to Bangkok and Singapore. It has a further 13 A321s on order, made up of 10 A321neos and three A321XLRs, as the carrier has ambitions to expand its network further on longer routes to Southeast Asia.