Spring Airlines

Jetstar Japan plans more aggressive launch than competitor Peach, reflecting Japanese LCC market

The launch schedule of Jetstar Japan, the LCC to commence services on 03-Jul-2012, is more aggressive than the Mar-2012 launch of competitor Peach, reflecting not only a market that will see tremendous and competitive growth in a very short period of time, but also the greater freedom enjoyed by the country's second wave of LCCs like Jetstar Japan.

While Jetstar in its first week will operate up to six daily return flights, one less than Peach launched with, the carrier will quickly ramp up operations, ending its first two months with 14 daily flights, more than the 11 daily flights Peach will have at the end of its first 3.5 months.

Jetstar Japan's launch will see four more of the world's 20 most populous routes have competition from LCCs, leaving only three routes served exclusively by full-service carriers in a reminder of greatly shifting tides. While LCC presence in China is the next objective, so too is domination: the world's most populous route is already controlled by LCCs. 

China's Spring Airlines evolves into a hybrid carrier as it targets a Japanese operating base

China's leading low-cost carrier, Spring Airlines, has been keeping a close watch on global LCC trends – and even hybridising its model in pursuit of higher yields. Spring has extended its new SpringPlus mini-cabin to over a dozen routes and has launched SpringPass, a comprehensive frequent flyer programme.

Spring continues to pursue the creation of a Japanese operating base. Although Japan this year will be inundated with new LCCs – including Peach, Jetstar Japan and AirAsia Japan – the region remains under-served, and Spring may gain more favourable Chinese government approval expanding in Japan rather than the domestic mainland China market, rife with government-owned airlines. As Spring builds further awareness, and hopes to launch services to Bangkok, it is also considering a re-branding.

Jetstar-JAL LCC, "Jetstar Japan" to commence service by Dec-2012

Japan Airlines Corp, Jetstar Airways and Mitsubishi Corp confirmed plans to establish a LCC JV in the Japan market by Dec-2012. Jetstar Japan will be Japan's third new LCC announced this year, following hard off the heels of All Nippon Airways' announcement last month that it plans to establish a JV with leading low cost airline AirAsia, AirAsia Japan, in addition to its previously announced LCC, Peach. The JAL JV would add another piece to the complex jigsaw that is now transforming the Asian airline market. The potential market growth as these successive ventures are introduced can be measured in the hundreds of millions of new passengers. Removal of highly restrictive regulatory conditions and the scale of opportunities as new city pair market options emerge mean literally that the sky is the limit for growth upsides.