Peach, Vanilla to merge into largest budget airline in Japan

March 17, 2018

Tokyo- Japan's second-largest budget airline Peach Aviation and No. 3 player Vanilla Air have decided on their management consolidation, which will create the largest low-cost carrier in the country in terms of sales, informed sources said Saturday.

Through the merger, the carriers under the wing of ANA Holdings Inc. aim to increase earnings by expanding their flight services to meet growing air travel demand in Asia and streamlining operations including the use of aircraft, the sources said.

Peach is based at Kansai International Airport in Osaka Prefecture, western Japan, and Vanilla at Narita International Airport in Chiba Prefecture, east of Tokyo. They both operate domestic flights and offer international services in the Asian region.

Their combined sales exceed those of Jetstar Japan, the current leading LCC based in the country.

The merged company is expected to use the Peach brand, the sources said. The two carriers will work out details of the merger later. Jiji Press