Two regional airlines in Japan will combine in order to survive the pandemic downturn.
Sapporo-based Airdo Co. and Miyazaki-based Solaseed Air Inc announced they intend to merge to share costs and streamline their respective operations.
They plan to merge so they can merge back-office operations, such as human resources and financial affairs, as well as save through joint procurement of fuel and other aviation supplies.
They hope to save about $27 million in costs per year.
However they will continue as separate business operations in order to keep impotant flight slots to Tokyo.
"There are limits to what we can do individually. The pandemic spurred us to start talks," said Susumu Kusano, President of Airdo.
They expect to complete a merger in the autumn.
