Japanese airline company ANA say they will take on a majority stake in budget carrier Peach Aviation.
ANA to inject spend 270 million dollars to raise its holding to 67 percent to make Peach a subsidiary.
ANA Holdings currently has a 39 percent stake. Two other Peach Aviation stockholders have stakes of about 30 percent each. They are a Hong Kong-based investment firm and a state-backed fund, Innovation Network Corporation of Japan.
ANA executives say they plan to buy about half of the shares held by these companies.
Peach Aviation was launched with ANA’s backing in 2012 as Japan’s first low-cost carrier.
Executives say the 2 airlines will be able to cut costs by combining aircraft purchases and pilot training.NHK