JAL will launch its own budget airline
Japan has confirmed it will launch a separate low cost unit to capture growing demand for budget air travel in Asia.
The as yet unnamed low cost carrier will start flying in the summer of 2020 using two Boeing 787-8 aircraft and will be based at Tokyo Narita Airport.
It will focus on medium- to long haul routes with flights across Asia, and to Europe and the Americas.
JAL will invest up to 20 billion yen in the business with the goal of turning a profit within three years, it said.
It will not compete with Jetstar Japan, in which JAL has a minority stake.
Jetstar Japan, which is a joint venture between JAL and Qantas, operates short haul routes within Asia Pacific.
Low cost carriers have captured about half of the air travel market in Asia but only a small proportion in Japan itself.
Full service carriers JAL and rival ANA still dominate the market while Japan’s bullet trains offer stiff competition to LCCs on domestic journeys.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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