ANA Holdings Co., Ltd. (ANAHD) has officially acquired 100% ownership of Peach Aviation, Japan’s first low-cost carrier (LCC), in a move aimed at strengthening its foothold in the Asian aviation market.
The acquisition was finalized on December 20, 2024, following ANAHD’s purchase of the remaining 7% stake held by its founding partner, First Eastern Aviation Holdings (FE).
Since its establishment in 2011, Peach Aviation has been a vital player in Japan’s LCC sector. Originally a joint venture between ANAHD and FE, Peach became a consolidated subsidiary of ANAHD in 2017. The airline has since demonstrated remarkable growth, with revenues reaching an all-time high in the first half of fiscal year 2024.
The latest move is part of ANAHD’s larger strategy to strengthen its business portfolio and boost profitability. By becoming the sole owner of Peach, ANAHD aims to build on previous growth and capitalize on the increasing number of inbound tourists to Japan. The move aligns with Japan’s broader tourism goals, which include attracting 60 million visitors annually and revitalizing regional areas through tourism.
Recent developments have showcased Peach’s growth ambitions. On December 4, 2024, the airline launched a new route connecting Osaka (Kansai) to Singapore, marking its first use of the state-of-the-art Airbus A321LR aircraft. This new route not only expands Peach’s network but also positions it to attract more international passengers traveling to Japan.
ANAHD’s Vision for Peach
With this acquisition, ANAHD aims to transform Peach into a leading low-cost carrier in Asia. The company plans to leverage Peach’s brand identity and corporate culture while fostering closer cooperation with other entities in the ANA Group. By doing so, ANAHD intends to strengthen the entire airline business sector within the group, aiming to drive better performance and higher corporate value.
Peach’s growing network is expected to play a significant role in ANAHD’s broader tourism strategy, which focuses on increasing inbound travel and supporting Japan’s regional development. The airline’s low-cost model, combined with ANAHD’s resources and expertise, is expected to generate more accessible flight options for travelers, making it easier to explore regional destinations across Japan.
This strategic acquisition reflects a broader trend in the aviation industry. Major airlines are taking full control of their low-cost subsidiaries to streamline operations and increase competitiveness. With the rising demand for affordable air travel in Asia, ANAHD’s complete ownership of Peach positions it to capture a larger share of the growing LCC market.
By fully integrating Peach into its business structure, ANAHD is taking a proactive approach to future-proof its operations and drive sustainable growth in Japan’s rapidly evolving travel landscape.
