Japanese airlines Airdo and Solaseed Air set to merge in 2022

Two Japanese regional airlines, Airdo and Solaseed Air, are set to merge, Nikkei learned Thursday, in what would be the first case of consolidation among airlines in the country in the wake of the COVID-19 pandemic. The merger, which is set for the autumn of 2022, is expected to reduce the carriers' operating costs through joint procurement of supplies and aircraft maintenance, amid a sharp fall in air passengers. The two airlines, both backed by ANA Holdings, will announce the plan as soon as late May. They will set up a joint holding company in the fall of next year. The most likely scenario is that the two companies will be placed under the holding company, according to sources. The airlines must carefully consider the form of the merger, as Japan's transport ministry may seize valuable landing slots from the merged entity at Tokyo's Haneda Airport. In addition to reducing procurement costs through joint purchases of fuel and other supplies, Airdo and Solaseed will seek to combine back-office functions such as human resources and accounting. There is also a plan to merge aircraft maintenance work at the two companies.<br/>