ANA Holdings is looking to launch a new medium-haul, low-cost carrier around 2020 as part of a greater focus on the budget market.

The carrier disclosed the plan in the latest update to its mid-term strategy, under which it plans to “continue to search for new demand” across its airline businesses.

While some of that will be achieved by exploiting further ties between its existing low-cost carriers, Vanilla Air and Peach Aviation, the company states: “We also plan to expand our LCC business further into medium-haul markets.”

Later in the document, the company adds that it plans to launch the new carrier around 2020 using “small size medium-haul aircraft”.

Given the timeline, it appears that the new carrier could launch with Airbus A321LRs. Executives at wholly-owned LCC Vanilla Air have previously indicated that they are interested in the range capability of the type, which could fly to destinations as far south as northern Australia.

More broadly, ANA is also looking to use Vanilla and Osaka-based Peach to capture demand from Asia.

“We expect the LCCs to play a role in ANA Group’s growth strategies, while also contributing to Japan's tourist industry and the revitalization of Japan's regions,” the company states.

Flight Fleets Analyzer shows that Vanilla Air has 14 A320s in service and five on order, while Peach has 20 in service and 17 on order – including 10 re-engined neo variants.

Elsewhere in the document, ANA reiterated its plans to grow its hubs at Tokyo’s two main airports, Haneda and Narita.

At Narita, the airline is looking to capture demand for business travel from Asia to North America, while Haneda will be focused on serving passengers travelling to Japan.

By 2022, ANA’s group fleet is expected to grow from 294 aircraft to 335, which would be split between 280 at its full-service carrier and 55 in the low-cost carriers.

Source: Cirium Dashboard