Japan's All Nippon Airways (ANA) is set to announce later today that it will set up a new low-cost carrier.

The airline said in June that it was studying low-cost carriers abroad to see if they are feasible in Japan, and will detail plans for the new airline today after a board meeting, says an ANA source.

ANA's new carrier is likely to be based at Osaka Kansai International Airport.

In July, the airline merged its low-cost subsidiary Air Japan with cargo carrier ANA & JP Express.

Besides ANA, Japan Airlines (JAL) has also said it is considering starting a low-cost carrier. JAL has enlisted the help of fellow Oneworld carrier Qantas Airways, and is studying Qantas' low-cost subsidiary Jetstar.

Source: Air Transport Intelligence news