2 Japanese regional airlines to merge operations

Jun 01, 2021 | News On Japan

Jun 01, 2021 (NHK) - Two Japanese regional airlines have reached an agreement to integrate their operations as they struggle to recover from the pandemic.

Airdo, based in the northernmost prefecture of Hokkaido, and Solaseed Air, based in Kyushu in the south, announced on Monday that they plan to set up a joint holding company in October 2022.

Airdo president Kusano Susumu said, "Our two firms have reached the conclusion that this is the best way to strengthen our business bases."

Solaseed Air president Takahashi Kosuke said, "We need to drastically transform our operations to face the post-pandemic era."

The two airlines aim to use the holding company structure to consolidate their management and reduce operating costs.

They will jointly procure aircraft parts and fuel, as well as integrate offices and check-in facilities at Tokyo's Haneda Airport.

They plan to continue to flying under their brand names and maintain existing air routes.

On the same day, Airdo announced a net loss of about 110 million dollars for the business year that ended in March. Solaseed said its red ink for the period amounted to 69 million dollars.

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