Japan's Airdo, Solaseed Air merge as travel demand hit by pandemic

Japanese regional airlines Airdo Co. and Solaseed Air Inc. merged their operations Monday to cut costs and effectively utilize resources amid a slump in travel demand caused by the coronavirus pandemic.

Airdo, headquartered in Sapporo on the northernmost main island of Hokkaido, and Solaseed Air, based in Miyazaki in the southwestern region of Kyushu, will retain their names and current routes under a new holding company, RegionalPlus Wings Corp.

With the merger, the struggling airlines aim to reduce costs through the joint maintenance of aircraft and procurement of supplies, they said.

Solaseed President Kosuke Takahashi was appointed as president of the holding company, while Airdo President Susumu Kusano assumed the role of chairman.

Transport minister Tetsuo Saito welcomed the move, telling a press conference, "I hope it will help maintain and further improve their airline services."

The two companies announced the merger plan in May 2021 as their operations were being hit by shrinking demand amid the pandemic.

Airdo and Solaseed suffered net losses in the business year ended March for the second straight year as the number of passengers fell due to COVID-19 restrictions and strict border controls imposed by the government.

© Kyodo News