ANA Holdings, which will merge its two subsidiaries, Vanilla Air and Peach Aviation, plans for the new combined unit to become a leading low-cost carrier in Asia, according to ANA's president, Shinya Katanozaka.

The merger, set to finalize in 1Q 2020, will see Peach Aviation as the surviving brand. Labor issues are currently being discussed.

Post merger from 2020, Peach aims to operate to at least 50 destinations, with a fleet of more than 50 aircraft. The destinations will be both domestic and international, including long-haul, and operating from both of their current bases at Tokyo Narita and Osaka Kansai airports.