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Business deals

ANA to combine 2 budget carriers by 2020

Peach and Vanilla will create Japan's top low-cost carrier

Japanese budget carrier Peach Aviation is due to absorb sister airline Vanilla Air by 2020.

TOKYO -- Japanese airline group ANA Holdings has decided to consolidate a pair of budget carriers under its wings by 2020 to create a more robust organization better positioned to compete in the growing Asian market.

ANA will merge consolidated subsidiary Peach Aviation with wholly owned Vanilla Air. The units rank second and third among domestic low-cost carriers, with their combined sales of roughly 76 billion yen ($716 million) in the year ended March 2017 eclipsing domestic leader Jetstar Japan.

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