All Nippon Airways (ANA)has applied to the Japanese Ministry of Transport for approval to begin operating a new international airline subsidiary, to be called Air Japan.

The airline will work under the framework and operating licence of the defunct World Air Network and is to begin daily scheduled flights from Osaka's Kansai airport to the South Korean capital Seoul from 1 January, initially operating a single 216-seat Boeing 767-300ER, dry-leased from ANA.

The new airline is part of efforts by ANA to reorganise its international network to boost profitability, says ANA president and chief executive Kichisaburo Nomura. ANA will gradually transfer certain short- and medium-haul routes to Air Japan, which will operate them on a code-share basis with ANA at lower cost than the parent.

Routes under consideration include Osaka-Guam and Osaka-Honolulu. Air Japan will add services from Tokyo's Narita airport in 2002.

Tokyo-based Air Japan has capital of ¥500 million ($5 million). Initial flight crews will come from ANA.

Source: Flight International