Airdo and Solaseed Air agree Japan's first post-COVID airline merger

Two of Japan's regional airlines, Airdo and Solaseed Air, announced Monday that they will merge in 2022, a move that could portend more consolidation among airlines in the wake of the COVID-19 pandemic. The merger aims to lower the two airlines' operating costs through standardization and more efficient use of resources, such as personnel and facilities. The carriers will set up a joint holding company in the fall of next year. The two airlines will decide the investment ratio of each party, the name of the new company and its executives later. They also announced on Monday the issuance of preferred shares through a third-party allotment to the Development Bank of Japan, the largest shareholder in the two companies. ANA Holdings is also a major shareholder in the two airlines. Hokkaido-based Airdo operates a popular route between Tokyo's Haneda Airport and Shin-Chitose Airport near Sapporo, the main gateway to Japan's northernmost main island. Solaseed Air, headquartered in Miyazaki, on the southern island of Kyushu, has routes connecting the island and Haneda. The two airlines have no overlapping routes in priority areas. "Each of us is making self-help efforts, but there are limits," Susumu Kusano, president of Airdo told reporters at a news conference on Monday. Kosuke Takahashi, president of Solaseed Air, echoed Kusano, saying, "We cannot survive unless we strengthen cooperation through a holding company." <br/>