ANA Looks at Low-Cost Option

All Nippon Airways is considering creating a new low-cost carrier based at Kansai Airport near Osaka, Japan, to enable it to compete with budget airlines in other Asian countries. It is planning to fly both domestic and international routes and according to industry sources will begin operations next year at the earliest. The subsidiary will operate under a different brand name and will fly more frequent, short-range services, using 200-seat aircraft to ensure high turnaround rates.
ANA believes that by simplifying its in-flight product and employing non-Japanese pilots significant costs savings can be made enabling it to drastically cut the price of its tickets. For example, on its international rotations to China and other Asian destinations fares are expected to be half those of major airlines, while one-way domestic fares would be priced at below 10,000 yen, around the same price as an express bus ticket.