What a competitive market Japan is gonna be!
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Wednesday, July 4, 2012
Budget carrier Jetstar takes off
Kyodo, Bloomberg
The first flight of Jetstar Japan Co., a budget airline funded by Japan Airlines Co., took off Tuesday from Narita International Airport bound for New Chitose Airport near Sapporo.
With the launch, Jetstar became the second discount airline to serve domestic routes in Japan, following the Osaka Prefecture-based Peach Aviation Ltd., a budget carrier owned partly by All Nippon Airways Co. The move appears to set the stage for a full-fledged price war between discount carriers across Japan.
Starting with the launch of Narita-New Chitose and Narita-Fukuoka routes on Tuesday, Jetstar next week will fly between Narita and Kansai International Airport in Osaka and between Narita and Naha Airport in Okinawa Prefecture. On Aug. 24, it will start services connecting Kansai International with New Chitose and with Fukuoka.
Jetstar Japan has said it may grow its fleet to 100 planes by the end of the decade as it lures travelers with fares less than half those charged by JAL and All Nippon Airways Co., the nation's two biggest airlines. Besides Peach Aviation, AirAsia Japan Co. is starting budget flights in Japan this year following the addition of new capacity at Narita.
Peach, which began services in March, estimates up to 40 percent of its customers are first-time fliers, President Shinichi Inoue said last month. The airline and AirAsia Japan are both part-owned by ANA. AirAsia Japan is also backed by AirAsia Bhd., the region's biggest low-cost carrier.
Jetstar Japan expects budget airlines to roughly triple their share of Japanese air travel to 35 percent by 2020.
Skymark Airlines Inc., Japan's biggest discounter, is also boosting services.
Jetstar Japan is offering one-way tickets to Sapporo from Narita for ¥4,490 on its website. JAL is advertising tickets from ¥12,300 flying from Tokyo's Haneda airport in August and September, according to its website.
http://www.japantimes.co.jp/text/nb2012070...ml#.T_Pgs4Qt234