The re-alignment of Japan's airline sector following deregulation is continuing, with All Nippon Airways (ANA) agreeing a codesharing deal with two small domestic carriers.

ANA says it has reached agreement with Fair Inc and Nakanihon Airline Service covering codesharing on secondary domestic routes from Tokyo's Narita airport after a long-awaited second runway opens in April.

The major carrier says a "basic understanding" was agreed in November, but final terms have yet to be worked out, as slot details still need to be formalised. ANA says, however, that the smaller carriers will be operating the flights on which it will add its code.

It is widely expected that Fair Inc, which operates Bombardier CRJs, will use its Narita slots to launch services to Sendai and Sapporo. Nakanihon, which operates Fokker 50s, and which is20%-owned by ANA, will launch services between Narita and its Nagoya base.

Industry sources say ANA is seeking to expand its domestic base, in part, as a result of merger plans unveiled late last year by its main competitors, Japan Airlines (JAL) and smaller Japan Air System (JAS).

The giant merged carrier will have a domestic market share of around 48%, roughly equal to that of ANA, which fears the enlarged airline will dominate the market, as JAL has a much larger international network than ANA, and a combined JAL/JAS will operate on far more domestic trunk routes.

Many observers expect the JAL/JAS merger will lead to further consolidation, possibly with ANA agreeing partnerships with Air Do and Skymark.

Source: Flight International