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Blend of Peach and Vanilla to flavour low-cost market

March 21, 2018 Headline News No Comments Email Email

Japanese budget carrier Peach Aviation is due to absorb sister airline Vanilla Air, creating a smooth and creamy blend that should be more attractive to the Asian market and might set Jetstar Japan’s teeth on edge.

Reports says Japanese airline group ANA Holdings has decided to consolidate the pair of budget carriers by 2020 to create a more competitive combination.

ANA will merge consolidated subsidiary Peach Aviation with wholly owned Vanilla Air, Asia.Nikkei.com reported.

The two sister carriers had combined sales of about USD 716 million in the year ended March 2017 – eclipsing domestic leader Jetstar Japan.

Peach

The Peach brand is expected to survive, but exactly how Peach will blend with Vanilla is unclear.

ANA sees consolidating Peach and Vanilla as helping it take on international competition from the likes of Australia’s Jetstar group and Malaysia’s AirAsia group.

Peach and Vanilla serve South Korean and Taiwanese cities and a few Southeast Asian locations. ANA plans by 2020 to launch more medium-distance routes (seven- to nine-hour flights).

Vanilla

Peach and Vanilla are fresh, flavoursome offerings that attract younger flyers, while All Nippon Airways has a strong business traveller following.

Written by Peter Needham

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