ANA confirms plans to acquire two domestic carriers

Plans to raise stake in RegionalPlus Wings group comes amid challenging domestic operating environment.

Japan’s ANA Holdings has entered into a memorandum of understanding with domestic airline group RegionalPlus Wings to increase its shareholding, eventually making the latter a wholly-owned subsidiary.

The disclosure on 29 October comes days after media reports suggested ANA Holdings – the parent company of All Nippon Airways – was looking to up its stake in RegionalPlus Wings from 15% to above 50%, effectively turning it into a subsidiary.

RegionalPlus Wings is the holding company of two domestic operators: Hokkaido-based Air Do and Solaseed Air, which is headquartered in Miyazaki prefecture.

The company was formed in 2022 to jointly manage both carriers, which have suffered financially in recent years after the Covid-19 pandemic and broader demographic shifts.

ANA Holdings says it will “advance specific discussions and consideration” towards the acquisition, noting that the MOU is not legally binding at the moment.

The company intends to sign a share exchange agreement with RegionalPlus Wings before the end of this year, paving the way for approvals for the exchange to take place in February 2027.

By 1 April 2027, it envisages the share exchange to be completed, effectively making RegionalPlus Wings its wholly-owned subsidiary.

ANA says Air Do and Solaseed will retain their branding and flight numbers at the initial stage, before gradually integrating with the ANA brand. Routes, flights, fleet procurement and fares will “shift to ANA Group-wide optimisation,” the company adds.

The deal comes amid as Japan’s domestic market undergoes major reforms in recent years, amid “structural shifts in demand” and a shrinking population.

ANA Holdings says the domestic passenger business “is changing significantly”, with business travel demand showing sharp decline in post-pandemic years.

“On the cost side, the airline industry incurs a significant proportion of its expenses in foreign currencies. Operating costs have therefore increased as aircraft procurement, parts and maintenance costs have risen sharply, driven in part by global and irreversible factors,” the company states.

While mainline operator ANA already has existing codeshare agreements with Air Do (in 2002) and Solaseed (in 2005), they operate as “independent business entities”.

This means the two groups “face restrictions on sharing competitively sensitive information and making integrated management decisions concerning routes, flight schedules, sales strategies and other matters.”

“These restrictions have prevented the efficient use of management resources,” states ANA Holdings.

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