All Nippon Airways Co.'s low-cost affiliate, A&F Aviation Co., will lease 10 Airbus SAS A320 aircraft to start services and challenge rival discount affiliates run by AirAsia Bhd. and Qantas Airways Ltd.
The aircraft will be leased through GE Capital Aviation Services starting this autumn in Japan, according to an A&F statement. The airline has said it plans to begin flying in the six months starting Oct. 1.
A&F has said it expects to be profitable within three years by offering domestic and international flights as economic growth in China boosts travel demand in the region. The agreement to lease Airbus jets follows Japanese low-cost carrier Skymark Airlines Inc.'s decision in November to expand its fleet with Airbus A380 superjumbos.