Jetstar Japan starts new era of air travel

• Jetstar Japan domestic network now on sale
• Australian LCC model to stimulate new travel demand in 3rd largest economy
• Tourism to Australia expected to benefit from increased mobility

Jetstar's new domestic airline in Japan has unveiled its domestic fares, aimed at revolutionising how millions of Japanese travel.

The new airline - which is a joint venture between the Qantas Group, Japan Airlines, Mitsubishi Corporation and Century Tokyo Leasing Corporation - is on sale from today to five domestic destinations. Offers range from 10,000 seats for just 1 yen (approximately $0.01 AUD) to everyday fares up to 50 per cent less than full service carriers.

The airline's first flight is scheduled for 3 July 2012.

Jetstar Group CEO, Bruce Buchanan, said the success of Jetstar's success low fares model in the Asia Pacific region, combined with its leading role in the burgeoning but largely untapped Japanese LCC market, would help redefine the country's domestic travel patterns.

"Jetstar was the first low cost carrier to fly to Japan, which gives our brand the benefit of incumbency in this emerging domestic market," Mr Buchanan said.

"Our business model is based around sustainable low fares and across the Asia Pacific we've seen the potential this has to unlock new travel demand. This is the start of a far more dynamic domestic market in Japan."

Mr Buchanan said Australian tourism stood to benefit from increased mobility within Japan, because it would link millions more Japanese in regional centres to Jetstar's low fare travel options to Queensland and the Northern Territory.

"Jetstar Japan is good news for Australian tourism," he said.

"Connecting our international services from Tokyo and Osaka with our new domestic network makes it easier for Japanese to visit Australia, which is high on their holiday wish lists."

Jetstar Airways is the largest carrier between Australia and Japan, having flown more than 2 million passengers between the two countries since 2007. It operates from Osaka and Tokyo to Cairns, Gold Coast and (via Manila) Darwin.

The new domestic routes in Japan strengthen Jetstar's network offering to its increasing customer base across Asia, including Greater China. The Qantas Group recently announced plans to invest in Jetstar Hong Kong, which will fly to destinations including Japan from 2013*.

"Jetstar Japan is based on a low cost model that Qantas and Jetstar created in Australia, which some of the world's biggest carriers want to partner with. It's a great example of exporting local know how and bringing those export dividends back to Australia," added Mr Buchanan.

*Both Jetstar Japan and Jetstar Hong Kong remain subject to regulatory approval.