Peach to raise capital to 15 billion yen

Toulouse
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Peach Aviation is following through on plans to secure additional investment to raise its total capital to 15 billion yen ($192 million), CEO Shinichi Inoue told Flightglobal.

The company was created in February 2011 with 30 million yen in equity commitments from three investors. All Nippon Airlines has a 33.4% stake in the Japanese low cost carrier. Peach is also 33.3% owned by Hong Kong First Investment Group and investment firm Innovation Network Corporation of Japan (INCJ), which also has a 33.3% stake in the carrier.

INCJ's managing director Tetsuro Toyoda told Flightglobal that the capital increase could be implemented next week. He stated investors will provide more equity in proportion to their holdings in the carrier.

When ANA first announced the joint venture partners for Peach in February, the companies stated prior to the launch that additional investment would be raised from domestic investors for a maximum of 15 billion yen.

The Japanese low-cost carrier took delivery of the first of 10 Airbus A320 aircraft in a ceremony in Toulouse today. It plans to add a second aircraft in mid-December.

Peach will launch services in March 2012 from its base at Osaka's Kansai International airport.