In the past fortnight, we witnessed Korean Air announce plans to takeover Asiana Airlines
in the coming years permitting final approval and the papers being signed.
However, it may not be the last we see of these types of mergers with carriers around
the world given the current climate and overall conditions that have impacted the Aviation
Industry.
A new article by Bloomberg’s Japan site which can be found below in the sources area
has dived deeper into what an expert who previously worked with the Prime Minister in the Growth
Strategy Council believes should take place and it’s quite interesting.
He believes that ANA and JAL should become one, this comes after both airlines are currently
like most carriers in dire need of additional cash to sustain their operations, aircraft,
network, and employees during this global pandemic.
In fact, his ideas continue as he believes there’s a way that the ANA and Japan Airlines
brand can be brought together as one and still work and that's in the form of splitting the
domestic and international scene in half.
While the airline would act say as one, the international operations would be separate
from the domestic operations almost acting as if there were two separate carriers, a
low-cost domestic one potentially and then a full-service intentional carrier.
The difference though is that they are flying as one.
ANA and Japan Airlines coming together as one I must reiterate has not been confirmed,
in fact, it’s only a mere suggestion at this point and therefore it’s not set in
stone.
Ultimately though further consolidation of areas is likely given the current state of
the Aviation Industry.
It provides ways for carriers to survive through this pandemic even if it means the collapse
of one specific airline naming.
As for this, who knows whether it’d be JAL or ANA that’d lose its branding.
It could quite literally be either if they were to go ahead with the advice given.
So are there benefits to this?
Yes and no.
However, ultimately the negatives outweigh the positives.
The current global pandemic we are going through will not be here in a decade, hopefully, but
a change as big as the merging of two big carriers like that of ANA and also Japan Airlines
will still be.
So while travel demand will return completely to normal Japan has lost one of its valuable
assets to the tourism industry as the two formed during a crisis that will not be with
us forever.
Complacency is another thing that needs to be considered should this merger ever actually
eventuate.
One of the many benefits of having a competitor, whether that's Airbus and Boeing going up
against it or two carriers battling it out in the same country is that it pushes the
pair or maybe more to better themselves with every passing month.
They continue to look at ways to advance in the future whether that be with their pricing
model or something as simple as various cabin changes!
What are your thoughts on the discussions over a potential merger though?
Feel free to let me know down below in the comments as always thank you very much for
the continued support