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LAXintl
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Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Thu May 13, 2021 4:44 pm

Two Japanese regional airlines, Airdo and Solaseed Air, are set to merge, Nikkei learned Thursday.

The merger, which is set for the autumn of 2022, is expected to reduce the carriers' operating costs through joint procurement of supplies and aircraft maintenance, amid a fall in air passengers.

The two airlines, both backed by ANA Holdings, will announce the plan as soon as late May. They will set up a joint holding company in the fall of next year.

The airlines must carefully consider the form of the merger, as Japan's transport ministry may seize valuable landing slots from the merged entity at Tokyo's Haneda Airport.

In addition to reducing procurement costs through joint purchases of fuel and other supplies, Airdo and Solaseed will seek to combine back-office functions such as human resources and accounting. There is also a plan to merge aircraft maintenance work at the two companies.



https://asia.nikkei.com/Business/Busine ... ge-in-2022

=

Suppose this consolidation is part of ANA's broader plan to restructure its LCC units such as Peach and reposition them better next to the ANA mainline unit
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UPlog
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Thu May 13, 2021 9:21 pm

Wonder what the merged entity will be called?

SolaseeDo?
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acecrackshot
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Fri May 14, 2021 4:48 am

DoAsISayNotAsIdo
 
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zkojq
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Fri May 14, 2021 4:52 am

Wait so ANA owns Solaseed? That means they owned three LCCs (Vanila Air, Peach Air and Solaseed) a few years ago?
First to fly the 787-9
 
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chunhimlai
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Fri May 14, 2021 6:20 am

zkojq wrote:
Wait so ANA owns Solaseed? That means they owned three LCCs (Vanila Air, Peach Air and Solaseed) a few years ago?


ANA are shareholders of both airlines (>20%)
Japan development bank is the largest shareholder for both airline and other major shareholders are the local firms
 
Tokushima
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Fri May 14, 2021 6:22 am

zkojq wrote:
Wait so ANA owns Solaseed? That means they owned three LCCs (Vanila Air, Peach Air and Solaseed) a few years ago?


They don't own it, but they hold 17.03% of the stock. The other major shareholders consist of the Development Bank of Japan (22.41%) and Miyazaki Kotsu Co., Ltd. who also has 17.03%.
 
Mat1776
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Fri May 14, 2021 10:56 am

I propose that the merged airline be named "Air Re-mi-fa". (No more do, no more so-la-ti.)
 
RoyalBrunei757
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Fri May 14, 2021 3:27 pm

zkojq wrote:
Wait so ANA owns Solaseed? That means they owned three LCCs (Vanila Air, Peach Air and Solaseed) a few years ago?

Actually almost all the smaller airlines in Japan is related to JAL or ANA in one way or the other.

ANA Holdings Inc. has stake or shareholdings in several airlines:
> All Nippon Airways (100%)
> Air Japan (100%)
> ANA Wing which comprises of Air Nippon, Air Nippon Network, Air Next and Air Central (100%)
> Peach Aviation Limited (100%) which comprises Peach Air and the previous Vanilla Air (fully merged into Peach in Oct 2019)
> Air Do (32.5%)
> Starflyer (18%)
> Solaseed (17%)
> Skymark (16.5%)
Source: https://www.ana.co.jp/group/en/companies/

Japan Airlines Co. Ltd has the following:
> Japan Airlines (100%)
> Hokkaido Air System (57.3%)
> J-Air (100%)
> Japan Air Commuter (60%)
> Japan Transocean Air (72.8%)
> Ryukyu Air Commuter (74.5% by Japan Transocean Air)
> ZipAir Tokyo (100%)
> Jetstar Japan (33.3%)
Source: http://www.jal.com/en/sustainability/re ... _2020a.pdf

Then you have the independent airlines:
> Fuji Dream Airlines
> Ibex Airlines (which has co-operation agreement with ANA Holdings for crew provision, maintenance, flight ops and engineering)
> New Central Airservice
> Oriental Air Bridge
> Amakusa Airlines (JAL has 20% stake)

Quite a lot of airlines serving Japan due to its geographical spread. In terms of livery diversity, ANA Holdings has more liveries among its member airlines, JAL is just the simple tsurumaru, except ZipAir Tokyo and Jetstar Japan. Some of the smaller airlines mainly serve certain niche market or far flung islands or areas.
 
filipinoavgeek
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Fri May 14, 2021 11:16 pm

RoyalBrunei757 wrote:
Source: https://www.ana.co.jp/group/en/companies/

Japan Airlines Co. Ltd has the following:
> Japan Airlines (100%)
> Hokkaido Air System (57.3%)
> J-Air (100%)
> Japan Air Commuter (60%)
> Japan Transocean Air (72.8%)
> Ryukyu Air Commuter (74.5% by Japan Transocean Air)
> ZipAir Tokyo (100%)
> Jetstar Japan (33.3%)
Source: http://www.jal.com/en/sustainability/re ... _2020a.pdf



What about Spring Airlines Japan? Apparently JAL has some kind of relationship with them but I can't find much details so far.
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jbs2886
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Fri May 14, 2021 11:27 pm

filipinoavgeek wrote:
RoyalBrunei757 wrote:
Source: https://www.ana.co.jp/group/en/companies/

Japan Airlines Co. Ltd has the following:
> Japan Airlines (100%)
> Hokkaido Air System (57.3%)
> J-Air (100%)
> Japan Air Commuter (60%)
> Japan Transocean Air (72.8%)
> Ryukyu Air Commuter (74.5% by Japan Transocean Air)
> ZipAir Tokyo (100%)
> Jetstar Japan (33.3%)
Source: http://www.jal.com/en/sustainability/re ... _2020a.pdf



What about Spring Airlines Japan? Apparently JAL has some kind of relationship with them but I can't find much details so far.


JAL has a minority interest, but is buying a majority of shares. https://www.japantimes.co.jp/news/2021/ ... ubsidiary/
 
Tokushima
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Sat May 15, 2021 1:21 am

[/quote]What about Spring Airlines Japan? Apparently JAL has some kind of relationship with them but I can't find much details so far.[/quote]

More about that here:

https://www.airliners.net/forum/viewtopic.php?f=3&t=1452613
 
RoyalBrunei757
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Sat May 15, 2021 4:42 am

filipinoavgeek wrote:
RoyalBrunei757 wrote:
Source: https://www.ana.co.jp/group/en/companies/

Japan Airlines Co. Ltd has the following:
> Japan Airlines (100%)
> Hokkaido Air System (57.3%)
> J-Air (100%)
> Japan Air Commuter (60%)
> Japan Transocean Air (72.8%)
> Ryukyu Air Commuter (74.5% by Japan Transocean Air)
> ZipAir Tokyo (100%)
> Jetstar Japan (33.3%)
Source: http://www.jal.com/en/sustainability/re ... _2020a.pdf



What about Spring Airlines Japan? Apparently JAL has some kind of relationship with them but I can't find much details so far.

Surprisingly Japan Airlines does not include Spring Airlines Japan in their annual report. I guess the 5% stake was insignificant, but it will all change soon as others have mentioned here, Japan Airlines will buy over and make it a wholly owned subsidiary. I think Japan Airlines will keep its branding due to its ties with mainland China, even though Spring Airlines China no longer owns them. The brand will be more receptive to local authority compared to Jetstar Japan which is tie to Qantas which does not have a strong brand presence in China at the moment. Jetstar Japan current operation are very much restricted to domestic market only.
 
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Sat May 15, 2021 5:29 am

RoyalBrunei757 wrote:
Jetstar Japan current operation are very much restricted to domestic market only.


I recall Jetstar Japan cooperating somewhat with Jetstar Asia and offering flights from Singapore to Okinawa connecting onto flights to KIX and NRT.

At least thats what was advertised here.
 
RoyalBrunei757
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Sat May 15, 2021 11:14 am

FromCDGtoSYD wrote:
RoyalBrunei757 wrote:
Jetstar Japan current operation are very much restricted to domestic market only.


I recall Jetstar Japan cooperating somewhat with Jetstar Asia and offering flights from Singapore to Okinawa connecting onto flights to KIX and NRT.

At least thats what was advertised here.

Yes, you are correct. Essentially you can book your way from Singapore to Okinawa onwards to Tokyo Narita directly through Jetstar main webpage. The routing would be SIN-CRK-KIX-NRT. First two legs with 3K, last leg with GK. All legs will be done with 3 hr 35 mins transit in between. You will depart 2am from SIN and arrive at NRT at 2pm on same day. Not too bad for SGD673.29 (USD505.53)

You can also do KUL to MEL, Australia even though Jetstar Australia does not fly into KUL directly (well, they used to, but not anymore). So you have fly 3K from KUL-SIN then connect to MEL with JQ.
 
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LAXintl
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Mon May 31, 2021 3:53 pm

Deal signed.

Air Do and Solaseed Air to merge in 2022 and set up a joint holding company to facilitate the merger. Carriers aim to lower their costs through standardization and more efficient use of resources, such as personnel and facilities.
The two airlines will decide the investment ratio of each party, the name of the new company, and its executives at a later stage.

https://asia.nikkei.com/Business/Busine ... ine-merger
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vfw614
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Mon May 31, 2021 6:38 pm

Is there any competition between the two at all? Air Do is focused on Hokkaido (north of Japan), Solaseed on Kyushu (south). Sounds like a logical pairing.

I took a couple of flights on Solaseed a couple of years ago. I do not recall them as being a typical LCC, but maybe my recollection is incorrect.
 
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Mon May 31, 2021 10:16 pm

vfw614 wrote:
Is there any competition between the two at all? Air Do is focused on Hokkaido (north of Japan), Solaseed on Kyushu (south). Sounds like a logical pairing.

I took a couple of flights on Solaseed a couple of years ago. I do not recall them as being a typical LCC, but maybe my recollection is incorrect.


Solaseed and Air Do (and Skymark) are kind of consider LCC, but only in Japanese standard. They started off by selling fares ~70% of JL/NH IIRC. The only LCC thing about both would be the all-Y seating, though. MM (Peach) is the first true-LCC in Japan anyway with a LCC fare structure.

Alas, Air Do only lasted about 4 years before they need a fund injection from NH, Solaseed only about 2. After that they are more or less regional arms of NH serving regional markets (Southern Kyushu and Hokkaido, respectively).

Otherwise, you are correct about their operation - they overlap on a grand total of zero routes. The merger I would say mainly streamline any overhead more than anything - basically turning into an airlines with flight throughout Japan instead of focusing on one single region.

RoyalBrunei757 wrote:
Then you have the independent airlines:
> Fuji Dream Airlines
> Ibex Airlines (which has co-operation agreement with ANA Holdings for crew provision, maintenance, flight ops and engineering)
> New Central Airservice
> Oriental Air Bridge
> Amakusa Airlines (JAL has 20% stake)


And even then Fuji Dream codeshare with JL on almost every single route. In fact, JAL (J-Air) more or less transfer all its routes out of NKM to FDA, which helps the latter finance quite a bit.

While independent, ANA also holds 4.7% of Oriental Air Bridge. ANA Wings also own the Q400s currently operated by Oriental Air Bridge (in ANA livery no less).

tl;dr: It is still more or less a JL/NH duopoly in Japan, especially now that Spring Japan is going to JL.
 
Tokushima
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Tue Jun 01, 2021 2:22 am

The TV news here in Japan put a LOT of stress on the fact that this is NOT a merger. The news said they were forming a holding company and also used the expression「業務提携」which in English is "business alliance" or "business partnership". The reason they do NOT want to merge is that if they do, ALL their highly valuable Haneda slots go back to the Japanese government which would then have to reallot them and such a action would clearly mean a net loss of those slots. So I find the wording of "merge"/"merger" in the linked article in the Nikkei Asia quite interesting.
 
EBT
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Tue Jun 01, 2021 3:14 am

Tokushima wrote:
The TV news here in Japan put a LOT of stress on the fact that this is NOT a merger. The news said they were forming a holding company and also used the expression「業務提携」which in English is "business alliance" or "business partnership". The reason they do NOT want to merge is that if they do, ALL their highly valuable Haneda slots go back to the Japanese government which would then have to reallot them and such a action would clearly mean a net loss of those slots. So I find the wording of "merge"/"merger" in the linked article in the Nikkei Asia quite interesting.


Nikkei Asia is an English-language publication aimed at readers outside Japan who are not so aware of the language nuance and the implications, hence why they have called it a merger. By what you have said, it appears to be a merger in all but name.
 
Tokushima
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Tue Jun 01, 2021 12:01 pm

EBT wrote:
Nikkei Asia is an English-language publication aimed at readers outside Japan who are not so aware of the language nuance and the implications, hence why they have called it a merger. By what you have said, it appears to be a merger in all but name.


They're going to keep their respective names and I'm unfamiliar with any other airlines mergers where that has happened. (I not saying that it hasn't happened, just that I'm not familiar with any,)
 
docmtl
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Tue Jun 01, 2021 12:31 pm

BTW, what airplane type will they fly as an LCC ? A320s, MAXs, A220s, E2 ?

I'm assuming no SpaceJet is in the cards after the program has been halted by MHI.

Cheers,

Docmtl
 
NYCVIE
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Tue Jun 01, 2021 7:32 pm

Tokushima wrote:
EBT wrote:
Nikkei Asia is an English-language publication aimed at readers outside Japan who are not so aware of the language nuance and the implications, hence why they have called it a merger. By what you have said, it appears to be a merger in all but name.


They're going to keep their respective names and I'm unfamiliar with any other airlines mergers where that has happened. (I not saying that it hasn't happened, just that I'm not familiar with any,)


Not uncommon in Europe where merged airlines from different countries keep their own identity: BA/IB (IAG), AF/KLM
 
Tokushima
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Tue Jun 01, 2021 9:05 pm

NYCVIE wrote:
Not uncommon in Europe where merged airlines from different countries keep their own identity: BA/IB (IAG), AF/KLM


Thank you for giving me 2 great examples without any snark involved in the comment. It's quite refreshing to see such civility on the 'net.
 
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Tue Jun 01, 2021 9:40 pm

docmtl wrote:
BTW, what airplane type will they fly as an LCC ? A320s, MAXs, A220s, E2 ?

I'm assuming no SpaceJet is in the cards after the program has been halted by MHI.

Cheers,

Docmtl


Currently Solaseed flies the B738 and Air Do flies the B737 (73G) and the B763. I would expect the B738 and maybe a few B788s sourced from NH.
 
Tiredofhumanity
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Wed Jun 02, 2021 1:33 am

aemoreira1981 wrote:
docmtl wrote:
BTW, what airplane type will they fly as an LCC ? A320s, MAXs, A220s, E2 ?

I'm assuming no SpaceJet is in the cards after the program has been halted by MHI.

Cheers,

Docmtl


Currently Solaseed flies the B738 and Air Do flies the B737 (73G) and the B763. I would expect the B738 and maybe a few B788s sourced from NH.


Have they indicated they're going to reduce/change their fleets? The remaining 763's aren't that old.
 
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mercure1
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Thu Jul 01, 2021 4:49 pm

Air Do shareholders approved the business integration proposal and agreed to issue US$63 million of preferred shares to improve finances

https://www.ch-aviation.com/portal/news ... hare-issue
mercure f-wtcc
 
rbavfan
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Re: Japanese airlines Air Do and Solaseed Air reported to merge in 2022

Thu Jul 01, 2021 5:22 pm

zkojq wrote:
Wait so ANA owns Solaseed? That means they owned three LCCs (Vanila Air, Peach Air and Solaseed) a few years ago?


ANA & JAL both own all are part of most every airline in Japan. Do a search for Airlines in japan. There is one site list that notes who their parent companies are.

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