All Nippon Airways (ANA) is making a significant strategic pivot at Kansai International Airport (KIX), reshaping the future of domestic travel in the region. ANA Holdings has announced its decision to transfer several major domestic routes from its full-service mainline carrier, ANA, to its low-cost carrier (LCC) subsidiary, Peach Aviation. This move is more than a simple schedule change; it’s a calculated response to the unique economic landscape of the Kansai travel market and a sign of the evolving dynamics in Japan’s aviation industry.
The New Flight Plan: A Sharper Dual-Brand Strategy
At the core of this decision is ANA’s “dual-brand strategy,” which aims to leverage both its premium, full-service carrier and its budget-friendly LCC to capture different segments of the market. By reallocating key domestic routes to Peach, ANA is sharpening this approach.
The new flight plan will see Peach, Japan’s largest LCC, take over routes that are primarily driven by leisure and price-sensitive travelers. Meanwhile, the mainline ANA brand will concentrate its resources at KIX on higher-yield business passengers and, crucially, on strengthening international connections, particularly through its primary hub at Tokyo’s Haneda Airport. This allows each brand to play to its strengths, optimizing cost structures and maximizing profitability across the entire group.
Behind the Move: Why Kansai, and Why Now?
The decision to implement this strategy so aggressively at KIX is rooted in the airport’s distinct characteristics and the current travel trends.
KIX: The Undisputed LCC Gateway
Kansai International Airport has long established itself as Japan’s premier hub for low-cost carriers. Even before the pandemic, in fiscal year 2019, LCCs accounted for a remarkable 43% of all international passenger traffic at KIX, a figure unmatched by other major Japanese airports. The airport’s 24-hour operation and strategic location make it a magnet for both domestic and international LCCs. ANA’s move is a direct acknowledgment of this reality: in Kansai, the LCC model is not just an alternative, but a dominant force.
Riding the Wave of Post-Pandemic Travel
The global travel recovery has been characterized by a strong resurgence in leisure and tourism demand, often outpacing the return of business travel. Japan is no exception. In 2023, Japan welcomed over 25 million international visitors, recovering to nearly 80% of pre-pandemic levels. A large portion of these visitors, especially from neighboring Asian countries, are leisure tourists who prioritize value and are accustomed to flying LCCs. By expanding Peach’s domestic network from KIX, ANA is positioning itself to capture these inbound tourists and seamlessly connect them to other popular destinations within Japan at an affordable price point.
Impact on Travelers and the Kansai Economy
This strategic shift is set to have a ripple effect, impacting everything from passenger choices to the regional economy.
For Travelers: More Choice, Different Experience
For budget-conscious travelers, this is welcome news. The expansion of Peach’s network will likely lead to more competitive fares and increased flight frequencies on popular domestic routes from Kansai. This could make travel to destinations like Okinawa, Sapporo, and Fukuoka more accessible for families, students, and tourists.
However, passengers accustomed to the full-service experience of ANA—including complimentary drinks, larger seat pitch, and extensive loyalty program benefits—will see a change. They will now face a choice between the à la carte, no-frills service of Peach or potentially connecting through another airport to fly with a full-service carrier.
A Tailwind for Regional Tourism
Economically, this move is poised to be a significant tailwind for the Kansai region. By making domestic travel from KIX more affordable, it encourages longer stays and multi-destination trips for both international and Japanese tourists. An inbound visitor landing at KIX can more easily add a side trip to a ski resort in Hokkaido or a beach vacation in Okinawa, spreading tourism revenue more widely across the country. This reinforces KIX’s role as a critical hub for Japan’s tourism industry, driving economic activity for hotels, restaurants, and attractions throughout Western Japan.
The Future of Flying in Japan
ANA’s bold move at KIX is a clear indicator of the future of Japan’s airline industry. The clear-cut division of roles between full-service carriers and their LCC counterparts is becoming the new standard. As airlines continue to navigate a competitive market, expect to see more of this strategic specialization, where cost efficiency and market alignment dictate which brand flies which route. For travelers in and out of Kansai, the sky is changing, with a clear flight path toward value-driven, leisure-focused travel.
