Ja­pan bud­get air­line Peach to buy 13 Air­bus air­craft

Kuwait Times - - BUSINESS -

TOKYO: Ja­panese low-cost car­rier Peach Avi­a­tion said yes­ter­day it would buy 13 Air­bus air­craft val­ued at al­most $1.4 bil­lion as part of its ex­pan­sion plans to cash in on a pick-up in de­mand for air travel in the coun­try. Peach, an af­fil­i­ate of ma­jor Ja­panese car­rier All Nip­pon Air­ways (ANA), agreed to buy 10 fuel-ef­fi­cient A320­neos and three con­ven­tional A320ceos, it said in a state­ment. The new air­craft are to be used for Peach’s “busi­ness ex­pan­sion” it said. The air­line flies both do­mes­tic and in­ter­na­tional routes, in­clud­ing to Shang­hai, Hong Kong and Seoul. “This will be the first time for a Ja­panese (low-cost car­rier) to or­der A320­neo air­craft,” Peach said, stress­ing the jet’s “su­perb en­vi­ron­men­tal fea­tures”. Chief Ex­ec­u­tive Of­fi­cer Shinichi Inoue said at a Tokyo brief­ing that the car­rier plans to ex­pand its fleet to at least 35 planes by 2020 and to 100 later. It cur­rently has 18 Air­bus A320s.

Inoue added that it is also look­ing at set­ting up a base at Sendai air­port next year and at Sap­poro’s Shin-Chi­tose in 2018. The A320­neo has a list price of $107.3 mil­lion and the A320ceo $98 mil­lion. The an­nounce­ment comes af­ter Euro­pean avi­a­tion gi­ant Air­bus last month re­ported a five per­cent fall in Jan­uary-Septem­ber net profit and said it in­tends to de­liver more planes than ini­tially fore­cast this year. The plane­maker is im­prov­ing its po­si­tion in the Ja­panese mar­ket, which has seen a quasi-monopoly by Amer­i­can ri­val Boe­ing with the two big­gest car­ri­ers-Ja­pan Air­lines and ANA-hav­ing a priv­i­leged re­la­tion­ship with the US man­u­fac­turer.—AFP

TOKYO: Air­bus ECO Fabrice Bregier (left) shakes hands with CEO of Ja­pan’s low cost car­rier Peach Avi­a­tion Shinichi Inoue dur­ing a joint press con­fer­ence in Tokyo yes­ter­day.

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