Less than two years after launching its response to Japan Airlines' ZIPAIR Tokyo - AirJapan - All Nippon Airways (ANA) announced it will close its own competing medium/long-haul budget airline brand.
Following Japan Airlines (JAL) move to launch its medium/long-haul budget brand ZIPAIR Tokyo, its fellow Japan-based counterpart All Nippon Airways (ANA) announced it would form its own answer to ZIPAIR in the form of AirJapan. Building on an existing brand under the ANA Group, AirJapan would be set up similar to ZIPAIR and referred to as a “hybrid airline.” However, less than two years since its first flight ANA Group has made the decision to end the operations of AirJapan next spring.
From Multi-Brand to Dual-Brand Strategy
In a statement posted at the end of October, the Tokyo, Japan-based ANA Group announced its decision to end the operations of AirJapan by the end of March 2026. Currently operating flights on three routes from Tokyo Narita Airport – Bangkok Suvarnabhumi, Seoul Incheon, and Singapore – the last flight is scheduled to be flown as NQ004 from Singapore to Narita on March 29, 2026. After the completion of the last AirJapan flight, the ANA Group plans to shift its resources – including the 2 Boeing 787-8 Dreamliner aircraft used by AirJapan and its employees – into ANA's mainline operations.
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Image: AirJapan Boeing 787 Dreamliner taking off from Tokyo Narita Airport (Credit: Wikimedia Commons)
According to the ANA Group, the decision to suspend the operations of AirJapan was made as part of a restructuring of its current multi-brand strategy into a dual-brand operation. The airline group also cited the global environment – specifically citing the ongoing war between Russia and Ukraine – and aircraft delivery delays as contributing reasons that led to the decision. In its statement, ANA stated the move is aimed to “maximize the entire group's profitability and competitiveness while flexibly responding to recent changes in the business environment.”
Under the ANA Group, the mainline operations of ANA is joined by budget subsidiary Peach and AirJapan. Following the cessation of AirJapan's operations, ANA Group will maintain the two remaining brands - ANA and Peach.
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Source: ANA Group
Air Japan to AirJapan
While AirJapan has operated as a hybrid airline since 2024, its history goes back to the early 2000s. In the former version of AirJapan, it operated under the name “Air Japan” with a focus on regional routes and charter flights on behalf of ANA.
After JAL launched ZIPAIR Tokyo leading up to and during the COVID-19 pandemic in 2020, ANA Group announced it would take Air Japan and rebrand it into AirJapan in 2022. Sourcing 787 aircraft from ANA, AirJapan would follow a similar model of ZIPAIR featuring lower fares compared to its mainline operations, inflight Wi-Fi/ purchases, and baggage allowance purchase options. AirJapan would operate its first flight as a hybrid airline in early 2024 between Narita Airport and Bangkok. Within the next two years, AirJapan would expand its operations to Seoul and Singapore.
Through AirJapan, ANA would offer direct competition to ZIPAIR Tokyo. Both airline groups had ambitions with their new brands on medium and long haul routes which would provide more flexible travel options to/from Japan.
No Premium Seats and Weak Load Factors
Both ANA and JAL are globally recognized brands, and often many travelers consider to fly with either carrier when planning a trip to Japan. Often a long flight from their home country, travelers also can enjoy great inflight products which can be booked through airline points if not through credit/debit cards. With the availability of premium seats to/from Japan, lower fares is not always the top factor when it comes to deciding which airline to fly with to/from the land of the rising sun.
To the credit of ANA, they did make investments for AirJapan's interiors and inflight offerings such as Wi-Fi. Those who have flown with them have reported positive onboard experiences. However, one factor is noticeably absent – premium seats. Without a premium product onboard, it may dissuade those who seek comfort on longer flights especially between Singapore and Tokyo, and on shorter routes which already have competitive flight options – including ZIPAIR.
Another factor was AirJapan was not able to sustain the initial interest in the airline following its first flights. According to ANA Holdings Financial Results for FY2024 which ended in March 2025 (posted April 2025), AirJapan served 40,000 passengers during FY2023 (which includes the time of its inaugural flights) before an increase to 428,000 the following FY2024. While other figures such as revenue and Revenue passenger kilometers increased, one statistic – Passenger load factor – was reported to be 69.3% in FY2024.
This is also reflected on ANA Holding's Financial Results for 1H FY2025 posted at the end of October. During the period (April-September 2025), AirJapan's Passenger load factor was 61.2% following a reported 55.3% during the same period the previous year.
While it was a small increase, it is not a load factor that a budget airline – especially one operating exclusively widebody jets – would want. Compared to the other ANA Group carriers, AirJapan was the worst performing brand when it came to Passenger load factors. During FY2024, ANA saw load factors of 79.2% (International) and 75% (Domestic) while Peach Aviation reported 84.4%.
ANA Group did make efforts to market AirJapan which included launching fare promotions and marketing campaigns in Thailand and South Korea. Those efforts were not enough to fill the majority of the available seats. Without premium seats that airlines charge more, it would be difficult for AirJapan to continue operating as is on very competitive routes to Bangkok, Singapore, and Seoul. There could be an argument that instead of closing AirJapan, ANA should introduce a premium product for AirJapan flights, though with ANA's international expansion in recent years the 787s continue to be an important part of its mainline operations. ANA seems more focused on its mainline operations – at the expense of AirJapan.
ANA's suspension of AirJapan concludes a recently created competition between the duopoly of ANA and JAL when it comes to medium/long-haul budget travel to/from Japan. They will still continue compete with their mainline operations, along with their domestic/regional budget brands Jetstar Japan (JAL) and Peach Aviation (ANA).
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