Air Do

Air Do is a Japanese regional airline headquartered in Sapporo and focused on scheduled passenger services linking Hokkaido with major cities on Japan’s main island, Honshu. The airline was established in 1996 as Hokkaido International Airlines during a period when Japan was liberalizing domestic aviation and permitting greater flexibility in the setting of fares. Its founders and investors sought to create a lower-fare alternative to the country’s established carriers on routes between Hokkaido and Tokyo and other major destinations. The airline began operating in December 1998 under the Air Do brand on the Tokyo–Sapporo route. Its initial proposition was based on relatively low fares, regional identity, and a concentration on the high-demand Hokkaido–Tokyo market. Early load factors were strong because its fares were substantially below prevailing walk-up fares offered by incumbent airlines. The established carriers subsequently introduced their own discounted advance-purchase products, increasing competitive pressure and reducing Air Do’s load factors. Air Do’s early expansion was supported by private investors, major Japanese companies, and Hokkaido-related public-sector interests. The airline nevertheless encountered financial difficulties, particularly after the downturn in air travel following the September 11, 2001 attacks. After it was unable to secure further financing from the Hokkaido prefectural government, the company entered Japanese corporate restructuring procedures in June 2002. A restructuring investment fund arranged by the Development Bank of Japan provided new equity, with All Nippon Airways becoming a significant participant. This led to a long-running commercial relationship that included ANA codesharing on Air Do flights and aircraft leasing arrangements. The company changed its legal name from Hokkaido International Airlines Co., Ltd. to AIRDO Co., Ltd. on October 1, 2012, while retaining Air Do as its consumer-facing brand. Its network has remained primarily domestic, with hubs or principal operating bases at New Chitose Airport near Sapporo and Haneda Airport in Tokyo. Air Do has operated an all-Boeing narrow-body fleet, historically including Boeing 737 and Boeing 767 aircraft, suited to domestic routes of varying length and demand. The airline has also experimented with services outside its normal domestic profile. In February 2020, it operated an international charter flight from Obihiro to Taipei. The service was temporary and did not become a permanent scheduled international network. The COVID-19 pandemic placed substantial financial pressure on Air Do and other Japanese domestic airlines. In 2021, Air Do and Solaseed Air announced plans to integrate their businesses. Shareholders approved the issuance of preferred shares intended to strengthen Air Do’s finances ahead of the integration, and RegionalPlus Wings was established as the holding company for the two carriers on October 3, 2022. Air Do and Solaseed Air continued to operate under their respective brands rather than being replaced by a single consumer airline identity. Today, Air Do’s brand is associated with Hokkaido-oriented domestic connectivity, comparatively accessible fares, and a regional airline model supported by cooperation with ANA. Its principal offering remains scheduled domestic passenger transportation rather than a broad international network. Route schedules, fleet composition, onboard services, and corporate leadership may change and should be verified against current company disclosures.

Air Do was founded in 1996 as Hokkaido International Airlines by Teruo Hamada, an entrepreneur in Hokkaido. Its creation followed Japan’s move toward domestic aviation deregulation, which made it easier for new carriers to compete through independently set fares. Hamada assembled investments from other individuals, corporations, and Hokkaido-related public interests to establish a lower-fare airline linking Hokkaido with Tokyo and other major Japanese cities. The airline began commercial operations in December 1998 on the Tokyo–Sapporo route using the Air Do brand. Its initial fares were markedly lower than the walk-up prices commonly offered by established domestic airlines, helping it achieve strong early load factors. Maintenance and ground-handling activities were outsourced to Japan Airlines during the early operating period. Incumbent competitors soon responded with discounted advance-purchase products, weakening Air Do’s initial price advantage and reducing utilization. In 2000, the Hokkaido prefectural government provided additional capital and placed one of its senior officials in a leadership role. The company later suffered from the broader decline in air travel after the September 11, 2001 attacks. When additional public financing was not available, Air Do entered Japanese corporate restructuring procedures in June 2002. A new equity arrangement was subsequently organized through a tokumei kumiai investment fund arranged by the Development Bank of Japan. All Nippon Airways was a key investor. The restructuring began a continuing relationship between the two airlines, including ANA codesharing on Air Do-operated flights and the leasing of Boeing 767 and Boeing 737 aircraft from ANA. When the investment fund was dissolved in September 2008, the Development Bank of Japan, ANA, and other investors became direct shareholders. On October 1, 2012, the company’s legal name changed from Hokkaido International Airlines Co., Ltd. to AIRDO Co., Ltd. The Air Do brand continued to be used in the market. The company faced a regulatory issue in 2014 when the Japanese government sanctioned it for promoting a first officer to captain despite inadequate training performance. A business improvement order followed, and the airline responded in January 2015 by moving to remove several low-yield routes, including services to Niigata, Toyama, Fukushima, and Komatsu. Air Do has remained primarily a domestic airline serving Hokkaido and Honshu. Its principal operating locations include New Chitose Airport near Sapporo and Haneda Airport in Tokyo. Although its normal business is domestic, it operated an international charter flight from Obihiro to Taipei in February 2020; that service was not developed into a permanent international operation. The COVID-19 pandemic created severe operating challenges for Air Do and Solaseed Air. In May 2021, the two airlines announced their intention to integrate their businesses. In July of that year, Air Do shareholders approved the issuance of preferred shares intended to strengthen the company’s finances before integration. RegionalPlus Wings, the holding company for both airlines, was formally established on October 3, 2022. The transaction preserved Air Do and Solaseed Air as separate airline brands. Air Do therefore continues to occupy a regional position centered on Hokkaido, supported by domestic network cooperation with ANA and a fleet strategy built around Boeing narrow-body aircraft.

• 2022

  RegionalPlus Wings is established

  [1]Air Doen.wikipedia.org

  The new holding company for Air Do and Solaseed Air is formally established on October 3.

• 2021

  Integration with Solaseed Air is announced

  [1]Air Doen.wikipedia.org

  Air Do and Solaseed Air announce plans to integrate their businesses after pandemic-related operating difficulties.

• 2020

  First international charter operation

  [1]Air Doen.wikipedia.org

  Air Do operates an international charter flight from Obihiro to Taipei in February.

• 2014

  Government issues business improvement order

  [1]Air Doen.wikipedia.org

  The Japanese government sanctions the airline over a captain-promotion decision involving a first officer whose training performance was judged inadequate.

• 2012

  Legal name changes to AIRDO Co., Ltd.

  [1]Air Doen.wikipedia.org

  The company changes its legal name from Hokkaido International Airlines Co., Ltd. to AIRDO Co., Ltd. while retaining the Air Do consumer brand.

• 2008

  Investment fund is dissolved

  [1]Air Doen.wikipedia.org

  After the Development Bank of Japan investment fund is dissolved, DBJ, ANA, and other participants become direct shareholders.

• 2002

  Corporate restructuring begins

  [1]Air Doen.wikipedia.org

  Air Do enters Japanese corporate restructuring procedures after financial difficulties intensified following the post-September 11 aviation downturn.

• 2000

  Hokkaido government provides additional capital

  [1]Air Doen.wikipedia.org

  The Hokkaido prefectural government injects further capital and appoints one of its senior officials to lead the company.

• 1998

  Commercial operations begin

  [1]Air Doen.wikipedia.org

  The airline begins operating the Tokyo–Sapporo route under the Air Do brand in December.

• 1996

  Hokkaido International Airlines is founded

  [1]Air Doen.wikipedia.org

  Teruo Hamada establishes the company in the context of Japanese domestic aviation deregulation, with the aim of creating a lower-fare Hokkaido-focused carrier.

A Hokkaido-centered regional airline offering scheduled Japanese domestic service with a regional identity and generally accessible fare proposition, operating in cooperation with ANA.

• Passenger airline service · 1998

  Scheduled domestic passenger flights

  Air Do’s principal product is scheduled domestic air transportation within Japan. The network is centered on Hokkaido and connects destinations there with major cities on Honshu, especially Tokyo. The service is designed for both residents traveling off the island and visitors traveling to Hokkaido. Flights are operated under the Air Do brand, with selected services subject to codeshare cooperation with All Nippon Airways.

• Domestic trunk and regional routes · 1998

  Hokkaido–Tokyo route services

  The Tokyo–Sapporo corridor was Air Do’s launch route and remains representative of its market identity. Services connect Hokkaido’s main air gateway, New Chitose Airport, with Haneda Airport in Tokyo. This corridor provides the airline with access to one of Japan’s largest domestic travel markets while reinforcing its role as a Hokkaido-oriented alternative to larger incumbent carriers.

• Frequent-flyer program

  My AIRDO

  My AIRDO is Air Do’s frequent-flyer program. Members earn points based on the fare amount associated with eligible Air Do travel. Registration is available to Japanese residents, and the program forms part of the airline’s customer-retention and direct-booking proposition.

• Charter air service · 2020

  International charter flights

  Although Air Do is principally a domestic airline, it has operated occasional international charter services. A February 2020 charter from Obihiro to Taipei represented a notable expansion beyond its normal scheduled domestic role, but the operation did not develop into a permanent international route network.

• 2014

  Captain promotion and training-performance sanction

  The Japanese government sanctioned Air Do after the airline promoted a first officer to captain despite poor performance in training. Authorities issued a business improvement order, making the incident a significant aviation-safety and governance issue for the company.

  Source

Read more

• 2022

  Establish RegionalPlus WingsM&A

  Background

  Air Do and Solaseed Air sought to combine selected management and operating resources while maintaining their individual airline identities.

  Action taken

  RegionalPlus Wings was formally established on October 3 as the holding company for both carriers.

  Aftermath

  Air Do continued to operate under its own brand, alongside Solaseed Air, within the new group structure.

  Source

• 2021

  Approve preferred-share issuance before business integrationM&A

  Background

  Air Do and Solaseed Air were pursuing integration after the COVID-19 pandemic created severe operating and financial pressure.

  Action taken

  Air Do shareholders approved the issue of preferred shares to improve the company’s financial position before the planned integration.

  Aftermath

  The capitalization step preceded the establishment of RegionalPlus Wings as the holding company for the two airlines.

  Preferred-share issuance. US$63.2 million (July 2021)

  Source

• 2015

  Remove low-yield routesStrategy

  Background

  Following the 2014 business improvement order and continuing pressure on route economics, Air Do reviewed the performance of its network.

  Action taken

  The airline moved to eliminate its lowest-yielding services to Niigata, Toyama, Fukushima, and Komatsu.

  Aftermath

  The decision represented a shift toward concentrating resources on routes with stronger commercial prospects.

  Source

• 2012

  Change the company’s legal name to AIRDO Co., Ltd.Strategy

  Background

  The airline had operated commercially under the Air Do brand while its legal corporate name remained Hokkaido International Airlines.

  Action taken

  On October 1, the legal name was changed to AIRDO Co., Ltd.

  Aftermath

  The corporate name was aligned more closely with the established consumer brand.

  Source

• 2002

  Accept restructuring and Development Bank of Japan-backed investmentStrategy

  Background

  Air Do faced financial distress after the deterioration of the aviation market following the September 11, 2001 attacks and the loss of expected public financing.

  Action taken

  The company entered Japanese corporate restructuring procedures and received new equity through an investment fund arranged by the Development Bank of Japan, with ANA as a key investor.

  Aftermath

  The arrangement helped preserve operations and led to codesharing, aircraft leasing, and broader commercial cooperation with ANA.

  Source

1. 1Air Doen.wikipedia.org
2. 2AIRDO official websiteairdo.jp