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From Aviation Week and Space Technology.
Japan Set To Become Latest LCC Battleground
Dec 19, 2011
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[TD="class: storyAuthor, align: left"]By Adrian Schofield
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Japan’s airline industry is set for a major transformation in 2012 with the debut of three low-cost carriers, as airline executives bet that there is enough demand to match the sudden emergence of a competitive LCC market.
Japan is a late arrival on the low-cost scene compared to other mature airline markets. It has had only a few locally based carriers—most notably Skymark Airlines—offering low-cost service, but now both Japan Airlines (JAL) and All Nippon Airways (ANA) are setting up joint-venture LCCs.
ANA is one of the partners launching Peach Aviation in March, and is also teaming with Malaysia-based AirAsia to debut AirAsia Japan in August. JAL will introduce Jetstar Japan by the end of 2012 in partnership with Qantas subsidiary Jetstar. The main battleground will be Tokyo Narita International Airport, where AirAsia Japan will go head-to-head with Jetstar Japan as well as new service from Skymark.
The Jetstar and AirAsia branded LCCs are drawing heavily on their overseas partners’ expertise in low-cost operations. JAL will not participate actively in setting up Jetstar Japan’s business model or in its operations, says JAL President Masaru Onishi. The business plan will be determined more by the Jetstar Group. JAL was not involved in selecting the CEO of the Japanese startup, who is from outside the airline industry.[/TD]
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[/TABLE]
Japan Set To Become Latest LCC Battleground
Dec 19, 2011
[TABLE="width: 100%"]
[TR]
[TD="class: storyAuthor, align: left"]By Adrian Schofield
Tokyo[/TD]
[/TR]
[TR]
[TD="align: left"]1 2 Next Page >>[/TD]
[/TR]
[TR]
[TD="class: storyBody, align: left"]
Japan’s airline industry is set for a major transformation in 2012 with the debut of three low-cost carriers, as airline executives bet that there is enough demand to match the sudden emergence of a competitive LCC market.
Japan is a late arrival on the low-cost scene compared to other mature airline markets. It has had only a few locally based carriers—most notably Skymark Airlines—offering low-cost service, but now both Japan Airlines (JAL) and All Nippon Airways (ANA) are setting up joint-venture LCCs.
ANA is one of the partners launching Peach Aviation in March, and is also teaming with Malaysia-based AirAsia to debut AirAsia Japan in August. JAL will introduce Jetstar Japan by the end of 2012 in partnership with Qantas subsidiary Jetstar. The main battleground will be Tokyo Narita International Airport, where AirAsia Japan will go head-to-head with Jetstar Japan as well as new service from Skymark.
The Jetstar and AirAsia branded LCCs are drawing heavily on their overseas partners’ expertise in low-cost operations. JAL will not participate actively in setting up Jetstar Japan’s business model or in its operations, says JAL President Masaru Onishi. The business plan will be determined more by the Jetstar Group. JAL was not involved in selecting the CEO of the Japanese startup, who is from outside the airline industry.[/TD]
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