JAL to launch low-cost carrier with Jetstar

[serfty]

JAL to launch low-cost carrier with Qantas unit - Nikkei | Reuters

(Reuters) - Japan Airlines Corp (JAL) will enter the low-cost carriers market through a joint venture with Australia's Jetstar group, and launch domestic flights next year, Nikkei reported.

The venture will be capitalized at 10-20 billion yen ($123.8-$247.7 million), with JAL and Jetstar, a Qantas Airways subsidiary, holding 30 percent stakes each, the daily said.

A decision on which company will have management control will be taken later, the business newspaper said. ...

 

[djfuzz]

So the orange pentagram continues its spread its tendrils.

Probably a wise move by JAL, though.

 

[Nigelinoz]

AusBT is speculating that QF may be considering using JAL's Tokyo hub as a base for some Jetstar 787's when they start arriving.

Jetstar and Qantas' oneworld alliance partner Japan Air Lines (JAL) are setting up a new Japan-based low-cost airline, to be based at either Tokyo Narita, Osaka Kansai or Nagoya Centrair international airports, Japanese media is reporting.
With Japan Air Lines' status as a launch customer for the Boeing 787, Qantas could well be considering using JAL's Tokyo hub as a base for Jetstar's own 787s, which are currently planned to arrive next year.
Qantas' experience with Jetstar will give it a 30% stake -- equal to JAL's holding in the new venture -- and potential management control of the new airline, according to Reuters translations of reports in the Japanese Nikkei financial newspaper.

Qantas to outsource Tokyo, Osaka flights to "Jetstar Japan"? - Flights | hotels | frequent flyer | business class - Australian Business Traveller
Cheers
N'oz

Edited to add - Crikey is reporting that JAL have "Hosed down" the report saying that "it is an option which is being considered, and that no decision has been made"
http://blogs.crikey.com.au/planetal...ire-has-been-lit-in-terms-of-a-joint-venture/

 

[samh004]

While it might only be an option being considered at this time, I don’t think they’ll find many better companies to partner with (who also already have close ties with them) to do the job. Very interesting times.

An an aside, BA doesn’t really recognise OneWorld and I always got the feeling they’d like to just buy other airlines and not be part of an alliance they can’t control, but now with Jetstar stretching out all over the place, perhaps Qantas is attempting to do the same.

 

[Nigelinoz]

Call me a cynic but I wonder whether the 'Hose down' may be as a result of a phone call from AJ to his opposite number at JAL,after all
with the problems QF is having with the unions at the moment I bet the last thing Mr Joyce wants is to have to defend a proposal to
expand what the unions call 'The orange cancer'.
Cheers
N'oz

 

[wingspan]

As the government has extensive controls of pricing of domestic transport, I will be very interested to see how this is priced. As the other main LCCs operating domestically aren't very competitively priced, though, I would be tempted to take a JetStar Japan flight over an AirDo. Especially if they have a network connecting Shikoku, Kyushu and Hokkaido with Honshu. Still, I imagine JAL will be more cost-effective for Oneworld frequent flyers though. It's hard to say no to business class for ¥1000 extra.

 

[Nigelinoz]

As the government has extensive controls of pricing of domestic transport, I will be very interested to see how this is priced. As the other main LCCs operating domestically aren't very competitively priced, though, I would be tempted to take a JetStar Japan flight over an AirDo. Especially if they have a network connecting Shikoku, Kyushu and Hokkaido with Honshu. Still, I imagine JAL will be more cost-effective for Oneworld frequent flyers though. It's hard to say no to business class for ¥1000 extra.

ANA is setting up a LCC called Peach targeting the domestic Japan market as well,they will be using a fleet of 10 A320's so I guess this could be seen as a strategy to combat ANA.
Cheers
N'oz

 

[wingspan]

ANA is setting up a LCC called Peach targeting the domestic Japan market as well,they will be using a fleet of 10 A320's so I guess this could be seen as a strategy to combat ANA.
Cheers
N'oz

I agree. I think both ANA and JAL are in better positions to set of domestic LCCs than the main domestic LCCs whose routes are limited and prices barely competitive. I'm still curious about how Peach and this potential JetStar Japan will offer competitive pricing in such a market. It would be nice if these compete directly with Shinkansen routes. Although their pricing is also controlled by the transport ministry. So... we'll wait and see I guess.

 

[jakeseven7]

An an aside, BA doesn’t really recognise OneWorld and I always got the feeling they’d like to just buy other airlines and not be part of an alliance they can’t control, but now with Jetstar stretching out all over the place, perhaps Qantas is attempting to do the same.

Um, doesn't really recognise? What on earth do you mean....


On the actual idea - fantastic news for QF Group if its true and very interesting...

 

[Timba-Jet]

This was part of the OW package to woo JAL to stay and not switch to Skyteam. Good to see it eventuate. Though interesting it is a JV setup.

Qantasia......

 

[Lendav Orav]

Um, doesn't really recognise? What on earth do you mean....


On the actual idea - fantastic news for QF Group if its true and very interesting...

I had a similar impression recently- Houston airport flying AA- lounge staff saying that "anytime access" has ceased, even though I'm a QF card holder (WP). I explained it was oneworld and nothing to do with BA gold benefits. Then they tried to say the flight has to leave from the same terminal. Nowhere have I even seen this as a requirement for the oneworld lounge access- anyone else? In any case, they did let us in but it's annoying to have to explain/persuade/argue for this.

 

[markis10]

Mitsubishi are now taking a part and its going to be NRT based domestic and international:

Aug 12 (Reuters) - Qantas Airways Ltd unit Jetstar Airways has agreed to form a 3 billion yen ($39 million) low-cost carrier joint venture with Japan Airlines Corp (JAL) and Mitsubishi Corp , the Nikkei business daily reported.
Jetstar Japan, which will use the Australian firm's brand as well as its operation, reservation and sales systems, will begin domestic and international flights out of Narita airport by December 2012, the Nikkei said.
Mitsubishi is expected to reduce its 33.4 percent interest in the company by next summer, when new shareholders are brought in. It is looking to make profits by handling the leasing of Airbus SAS aircrafts to the new carrier, the daily added.
Jetstar recorded highest sales among budget air carriers in the Asia-Pacific region last year, the Nikkei said. ($1 = 76.780 Japanese Yen) (Reporting by Aman Shah in Bangalore)

 

[pauly7]

Wow love it or hate it Jetstar really is set for world domination.

 

[docjames]

Wow love it or hate it Jetstar really is set for world domination.

Put me in the "hate it" camp. :evil:

 

[medhead]

Not sure if its been posted already.....


In 2012, QF is to launch a LCC, expected to be called Jetstar Japan or JJ. Qantas and JAL will each hold 33.3% and Mitsubishi will own 33.4%.

Wonder if this is a part of the August 24 announcement?

Thoughts?

I suggest you check the qantas part of the forum. The ownership ratio I read were different to what you listed.

Edit: 1/3 each for capital. Investment base 42% QF and JAL, 16% Mitsubishi.

 

[mannej]

Post I was referring to has disappeared

 

[Hvr]

So what region of Japan would a Japanese Jetstar recruit their FAs from? Of course they have a 'western suburbs' type of person (of which I am proudly one) but I don't know where it would be in Japan.

Sort of like the Mongkok girls of HKG.