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CAPA TV | April 5, 2020

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Peach Aviation Named CAPA Asia Pacific Low Cost Airline of the Year

CAPA
  • On December 3, 2015

This award is given to the low cost airline that has been the biggest standout strategically, established itself as a leader, been most innovative, and provided a benchmark for others to follow.

Peach was selected by the judging panel for quickly establishing itself as a leader in the emerging Japanese LCC sector. “Peach became the first pure LCC in Japan when it launched operations in 2012. In a challenging and increasingly crowded marketplace it has differentiated itself through product and strategic innovations,” Mr Harbison said. “It has now been profitable for two consecutive years and, most importantly, has proven the LCC model can be successful in the Japanese market.”

Peach now operates 22 domestic and international routes with a fleet of 17 A320s. CAPA noted that it has been able to stimulate rapid growth at Osaka Kansai, its main base, and in Aug-2015 became the first LCC to operate from Tokyo Haneda. Peach has often kept a low profile and has pursued steady growth, but this has delivered results – financially, strategically and from market perception.

Peach quickly developed a strong and well recognised brand in the Japanese market, enabling it to differentiate itself from competitors. It boldly set out to target female travellers, whom Peach identified as typically booking leisure trips for the family. Peach has gone on to appeal successfully to a wide base including senior citizens and business passengers.

Its success in international routes is driven in part by its ability to attract inbound passengers, which now account for 60% of its total international traffic. Peach has been able to stimulate traffic and promote one-day return international trips from Japan to nearby short haul markets, previously unthinkable.

Developing its own check in kiosks has been one of several product innovations. Peach’s independence from All Nippon Airways, which owns a minority 39% stake in the carrier, has been critical. This distance has enabled the management team to pursue cost reductions and develop a new type of airline for Japan. Peach and its fellow LCCs are contributing to a revival of local and international passengers, delivering clear benefits for the Japanese economy.

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