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Japan’s ANA to merge express subsidiary with domestic unit

ANA

Japanese airline ANA plans to merge its express subsidiary ANA & JP Express into domesticcarrier Air Japan to reduce costs and streamline operations.

ANA & JP Express (AJV) will be formally acquired by and then absorbed into Air Japan witheffect from July 1, 2010. Air Japan is a small passenger charter airline owned by ANA. The movefollows ANA’s buyout of AJV minority shareholders Japan Post (33%), Nippon Express (10%) and MisuiOSK Lines (5%) as of April 1.

AJV currently operates freighter flights between Japan, Shanghai, Hong Kong, Taipei, Seoul andBangkok via ANA’s cargo hub on Okinawa with a fleet of five B767-300 freighters.

AJV was created as a new Japanese cargo airline in 2006 as part of ANA’s aim to build up its aircargo activities and Japan Post’s strategy of expanding its international business, and launchedflights to various Chinese and other Asian destinations with B767 freighters. Last autumn, however,it was reported that Japan Post wanted to pull out of the joint venture after three years due todisappointing volumes.

In March 2010, ANA announced a new strategy for 2010-11, based around international growth,including cargo, and cost savings. The airline reaffirmed its aim to develop a specialised cargooperation, stabilise the use of its Okinawa cargo hub and strengthen cargo sales.

ANA continued to press ahead with its air express expansion plans last year with the merger ofits two express holdings OCS and All Express (Allex). The new company was designed as a ‘regionalintegrator’ offering door-to-door delivery using ANA and AJV airlift capacity.

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