TOKYO, March 22 (Reuters) - ANA Holdings, Japan’s biggest airline by revenue, said on Thursday it would merge its units Peach Aviation and Vanilla Air by March 2020, to boost the competitiveness of its budget carrier business and tap growing travel demand in Asia.
The integrated low-cost carrier business, which will be known as Peach, plans to enter the mid-haul market by the fiscal year starting in April 2020, ANA said in a statement.
ANA also said it would spend 11.3 billion yen ($107 million)to boost its stake in Peach to 77.9 percent from 67 percent now, with Far Eastern Aviation’s share to fall to 7.0 percent. It already owns all of Vanilla.
$1 = 105.8100 yen Reporting by Chris Gallagher, Chang-Ran Kim, Sam Nussey Editing by Muralikumar Anantharaman