Low-cost carriers face test in Japan: FT.com

Posted: April 17, 2012 in Asia, Japan
Tags: , , , , , , ,

The enthusiasm among passengers was palpable on Peach Aviation’s Flight MM153, as the low-cost carrier made its way from Osaka’s Kansai International Airport (KIX) to Fukuoka early last month.

Peach, which began operations on March 1, is the first of three low-cost carriers to arrive this year in Japan

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After the cabin attendant thanked the passengers on one of the first flights for the fledgling airline, spontaneous applause erupted, with one excited customer even calling out, “ganbatte-ya”, or “Good luck,” in the Osaka dialect.

Peach, which began operations on March 1, is the first of three low-cost carriers to arrive this year in Japan, the third-largest domestic air market in the world but virtually virgin territory for budget airlines. High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article.

n July it will be joined by Jetstar Japan and in August by AirAsia Japan, providing domestic travellers with greater choice and lower prices in flights between some of the country’s busiest destinations, such as Tokyo and Sapporo in the north. All three airlines are joint ventures between foreign investors and Japanese airlines, since foreigners can only own up to one-third of a Japanese domestic airline.

The simultaneous arrival of the three low-cost carriers is a direct result of the government’s policy to stimulate the domestic air travel market.

Competition in Japan’s air travel market has long been restricted by a lack of landing slots at major airports, high landing fees and, until deregulation in 2008, restrictions on the amount of discounting allowed….. cont…

Read the full story at The Financial Times…..


By Michiyo Nakamoto in Tokyo
Financial Times


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