All Nippon Airways (ANA) says it is considering establishing a low-cost carrier that would be separate to the mainline carrier and responsible for operating domestic services in Japan.

The airline says its management has been considering the matter for some time, but no formal committee has been formed so there has been no decision or recommendation to the airline board. ANA declines to confirm reports the low-cost carrier will be formed by year-end. It is understood that some of the 45 Boeing 737-700s ANA has on order may be operated for the new carrier.

Source: Flight International