Japan Airlines

Peach to launch Japan's LCC sector with two-tier fare structure and basic ancillary options

2012 will see the rapid entrance of the low-cost model in Japan, a market whose high focus on service had been used as an excuse for why a la carte LCCs could not gain a standing in the country. The country's first LCC to come to market, Peach Aviation, has released its launch fare structure that offer discounts upwards of 58%. Despite fares significantly lower from full-service competitors, its ancillary options are so far basic, leaving room for improvement from established LCC brands AirAsia and Jetstar, who will enter the market in 2012 with their AirAsia Japan and Jetstar Japan subsidiaries.

While Peach's offerings may be underwhelming for those versed in LCC commercial strategy, they will still come as a shock to the Japanese, who have broadly not experienced a home-grown LCC. While Peach will have the first mover advantage in the market, it will also be the first to help the market adjust to LCC pricing strategies, which AirAsia and Jetstar will build on. Peach too can also be expected to expand its offering.

JAL's new 787 Dreamliner routes to Moscow and New Delhi allow it to trim capacity on thin flights

Airlines can deploy the B787 in broadly two ways: the high-profile option of opening new long-haul routes, and the less exciting, but often more practical, replacement of older aircraft, B767s in particular. It is in this latter category that fit Japan Airlines' (JAL) new B787 destinations of Moscow and New Delhi. JAL's deployment of the B787 will see the aircraft largely replace the B777-200ERs that currently serve the routes, allowing JAL to trim capacity as its B787s seat 186 while its B777-200ERs seat 245. Moscow and New Delhi may have been better suited to be served by the B767, but JAL and many airlines never planned to fit out B767s for long-haul sectors. JAL will also deploy its B787 to Beijing from Tokyo Haneda, following All Nippon Airways (ANA).

JAL, emerged from bankruptcy, takes more bullish profit outlook than ANA

Japan Airlines Corp (JAL) generated a solid profit results in the six months ended 30-Sep-2011 (1HFY2011) with an operating profit of JPY106.1 billion (USD1.4 billion) and a net profit of USD1.3 billion (JPY97.4 billion) on revenues of USD7.7 billion (JPY599.8 billion). The results were an encouraging sign for the carrier amid an intensified focus on improving cost efficiency and an aggressive scaling down of operations as part of its rigorous restructuring efforts.

JAL also upgraded its full year forecast to an operating profit of USD1.8 billion (JPY140 billion) which would mark the carrier’s largest full-year operating profit in nearly a decade (since FY2003). The carrier is anticipating a net profit result of USD1.5 billion (JPY120 billion), considerably higher than its earlier forecast of JPY75.7 billion, as its restructuring efforts begin to yield results. While the carrier did not provide comparison to the previous years, the interim result accounted for around 76% of its targeted operating profit and 81% of the airline's targeted net profit.

JAL Airline of the Year and John Borghetti CEO of the Year - CAPA Aviation Awards for Excellence

Japan Airlines; Mr John Borghetti of Virgin Australia; Changi Airport; IndiGo; SilkAir; Ibaraki Airport; SITA and Malaysia Airlines; Christchurch Airport and Sendai Airport take top honours

Japanese aviation is the big winner in this year’s CAPA Aviation Awards for Excellence, reflecting the beginning of a new era in aviation in Japan and North Asia. Japan Airlines has been named CAPA Asia Pacific Airline of the Year 2011, while Ibaraki Airport near Tokyo was named Low Cost Airport of the Year and Sendai Airport received a Special Airport Leadership Award from CAPA in recognition of its community and industry leadership and teamwork in responding to the Japanese earthquake and tsunami disaster this year. Singapore aviation was also strongly represented, as Singapore Changi Airport and SilkAir were both major category winners.

JAL continues low-density 787 configuration trend with plan for 186 seats

Japan Airlines (JAL) will configure its B787-8 in a two-class configuration seating 186 passengers across 42 seats in a 2-2-2 business class configuration and 144 economy class seats in a 2-4-2 economy class configuration. JAL has elected not to feature, at least initially, the first class and premium economy class on its other long-haul aircraft, the B777.

JAL plans to deploy its B787 on a new Tokyo Narita-Boston route from 22-Apr-2012, as well as on existing routes prior to that. JAL's low density option follows a decision from launch customer and operator All Nippon Airways (ANA) to configure its long-haul international B787 fleet with only 158 seats, or 28 fewer seats than JAL.

Both ANA And JAL will have a lower configuration density than Boeing’s "typical" three-class configuration plan of 242 seats, as stipulated in a Mar-2011 Airport Compatibility Brochure for the B787. LOT plans to outfit its B787 with 252 seats, and United 219 seats.

Miyuki Suzuki's appointment as Jetstar Japan CEO marks second female executive for Jetstar Group

Jetstar Japan announced on 10-Oct-2011 a few milestones towards its way late 2012 launch, including the appointment of Miyuki Suzuki as CEO, effective 01-Dec-2011. Ms Miyuki, a former CEO of Japanese telecommunications and IT services company KVH Co, will be the second female CEO at a Jetstar Group company, joining Chong Phit Lian, who is CEO of Singapore-based Jetstar Asia.

Commenting on the appointment, Jetstar CEO Bruce Buchanan noted in an interview with The Australian, "The aviation industry in Japan has been male dominated for a long time. Japanese women are, I think, the most underemployed anywhere in the world. A female CEO is another big signal of how radically we want to change the market up here."