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Business deals

Airdo and Solaseed Air agree Japan's first post-COVID airline merger

Consolidation aims to cut operating costs as industry reels from demand collapse

Japanese regional airlines Airdo and Solaseed Air announced a merger to be completed in 2022, hoping to cut costs as the travel industry struggles to recover from the pandemic. (Photos by Masarru Shioyama)

TOKYO/SAPPORO/MIYAZAKI, Japan -- Two of Japan's regional airlines, Airdo and Solaseed Air, announced Monday that they will merge in 2022, a move that could portend more consolidation among airlines in the wake of the COVID-19 pandemic.

The merger aims to lower the two airlines' operating costs through standardization and more efficient use of resources, such as personnel and facilities. The carriers will set up a joint holding company in the fall of next year.

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