Jetstar feels weight of costly overheads

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FT.com / Companies / Transport - Jetstar feels weight of costly overheads

Holidaymakers flying from Japan to Australia on Jetstar, the low-cost subsidiary of Qantas, can order Japanese meals, watch Japanese movies and ask Japanese-speaking cabin attendants for help adjusting their seats.

Such comforts come at a cost to the normally ultra-frugal airline but have been essential to keep it going in Japan, says Masaru Kataoka, general manager. A year after its debut, Australia's Jetstar remains the only international budget carrier operating in Japan.

Some industry observers expect it to have company soon. All Nippon Airways, Japan's second-biggest carrier, is looking to launch a no-frills business, possibly in collaboration with another Asian airline. It plans to set up an office in Hong Kong next month to conduct market research and sound out potential partners. Regional budget carriers such as AirAsia and Tiger Airways are also eyeing Japan.