Jetstar Japan starts operation

2012 is the year of Japanese LCC with three new budget carriers starting operations. After Peach in March and before AirAsia Japan on August 1st, July 3rd signalled the beginning of Jetstar Japan, a subsidiary of Qantas and Japan Airlines.

TOKYO- For many years, Japan was seen as the last bastion of scheduled full service carriers as the Japanese government seemed reluctant to give traffic rights to low cost airlines in a bid to protect its own Japanese national carriers. Until last year, the only notable exception was Philippines-based Cebu Pacific with flights from Manila to Osaka as well as Korean low cost airlines such as Jin Air or Jeju Air.

However, Japan’s government finally woke up to the low cost phenomenon, especially as the country’s two largest airlines decided to launch their own low cost subsidiary. On March 1st, All Nippon Airways and its Hong Kong-based partner Far Eastern Investment Group launched Peach (MM), a budget carrier based in Osaka Kansai Airport. Peach started its operations with two Airbus A320 with 180 seats with flights to Fukuoka and Sapporo Chintose International Airport. For All Nippon Airways, Peach is due to revive a weakening local market. In less than a decade, Kansai International Airport lost over five million passengers with a turnout of only 14 million passengers last year. Until 2013, the fleet must grow to include 10 aircraft with seven destinations being served until year end. After Seoul in May and Hong Kong on July 1st, Peach will start flights to Taipei on September 25th. It is so far the only Japanese LCC with an international network.
 
On July 3rd, it was then the turn of Jetstar Japan, the 'child' of Australian Qantas and Japan Airlines. Each airline owns a third of the shares. Based in Tokyo Narita, the airline will serve four domestic destinations and will also serve two destinations out of Osaka Kansai until the end of August. The airline is also equipped with Airbus A320 having a total of 180 seats. Jetstar will rapidly face competition. On August 1st, AirAsia newest baby, AirAsia Japan will start its operations from Tokyo Narita with flights to three destinations, Fukuoka, Okinawa and Sapporo. The airline will also connect to flights from AirAsia X to Kuala Lumpur, launched last spring. More flights to connect Japan to gateways from other members of the AirAsia Group are likely to open. AirAsia Japan also operates with Airbus A320 with 180 seats.

Table: Japanese LCC planned operations