News On Japan

JAL to launch budget airline ahead of Tokyo Olympics

May 09, 2018 (Nikkei) - Japan Airlines is set to launch a budget airline with the aim of offering medium- and long-haul international flights by 2020, when Tokyo is set to host the Olympic and Paralympic Games.

JAL will also consider providing the first low-cost flights between Japan and Europe, as well as Japan and the U.S. The envisioned users are both Japanese outbound travelers and foreign visitors to Japan.

By opening its own routes, the carrier will expand competition in the low-cost carrier business. The company aims to shift its management focus to growth from reconstruction, after series of business troubles in recent years.

JAL will establish the LCC in the near future, after which it intends to secure and train pilots, and work out detailed business plans, including brand strategies and flight routes.

The possible flight routes to and from Narita International Airport include those to North America, Europe and other parts of Asia, but these are not expected to overlap with JAL's existing major international flight routes.

Since filing for bankruptcy protection in 2010, JAL has been forced to make reconstruction the priority, and has been under pressure to turn a profit. Under such circumstances, where the room to take risks was limited, Jetstar Japan was the only LCC in which JAL held a stake. JAL and Australia's Qantas Airways both hold a 33.3% stake in Jetstar.

In April 2017, the situation changed for JAL, when the Infrastructure, Transport and Tourism Ministry lifted restrictions on the company's investments, and on the introduction of additional air routes, allowing the airline to jump into the LCC market.

Japan's LCC market began flourishing in 2012, when domestic and foreign air carriers launched a number of operations. The share cut-rate carriers have of Japan's domestic routes remains at around 10%, however, compared with Southeast Asia and Europe, where the shares of budget flyers are around 60% and 40% respectively.

Budget airlines, however, hold a 20% share of international flights to and from Japan, greater than the share of domestic flights. The number of low-cost international flights is expected to rise, as Japan aims to increase the number of foreign visitors to 40 million by 2020.

Most of the international budget routes to and from Japanese airports are relatively short distance, with many of the destinations in Southeast Asia. JAL's longer-distance flights are expected to offer leisure and business flyers more options, and to better acquaint customers with discount airfares.

JAL plans to target segments it has mostly overlooked so far, such as families and younger travelers, in addition to the business customers that are its current focus.

The world's major carriers are bolstering their low-cost operations. ANA Holdings, JAL's archrival in Japan, plans to merge Peach Aviation and Vanilla Air by the end of March 2020. Germany's Lufthansa and Singapore Airlines are also expanding their budget operations.

Elsewhere in Asia, NokScoot, owned by Thailand's Nok Air and Singapore's Scoot, is about to start service between Narita and Bangkok, while Airasia X will begin Narita-to-Jakarta flights.

News On Japan
POPULAR NEWS

Record rainfall caused 19 rivers to overflow across Fukui Prefecture, flooding roads and homes, triggering landslides and temporarily forcing authorities to issue the highest-level heavy rain emergency warning from early Sunday morning.

Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

Two typhoons east of Japan were moving northward on August 30, with Typhoon No. 23 (Banlan) overtaking Typhoon No. 22 (Artau), although neither storm is expected to have a direct impact on Japan.

A 9-minute, 13-second drone video filmed inside Aeon Mall Kumamoto two days after the deadly explosion has provided a detailed view of the destruction, showing collapsed ceilings, heavy dust and widespread damage that may have affected between one-third and nearly half of the shopping center.

Strong Typhoon No. 18 was moving northwest through the East China Sea on the night of August 26, gradually pulling away from Okinawa and the Amami Islands as lingering rain, strong winds and high waves were expected to ease. As of 9 p.m. on August 26, the typhoon was over waters north-northwest of Kume Island and moving northwest.

MEDIA CHANNELS
         

MORE Society NEWS

Three teenage boys who went missing after being swept offshore from the coast of Ichikikushikino, Kagoshima Prefecture, on August 28 were found in the sea near the scene on August 29 and confirmed dead.

A foreign man in his 30s suffered serious injuries after being struck by a car while riding a bicycle in Higashiomi, Shiga Prefecture, early on August 29, with police investigating the incident as a hit-and-run.

A fake video apparently created with generative AI showing a large bear eating piles of sliced bread has spread on social media following a series of illegal bread dumping incidents in Tottori Prefecture, prompting the prefectural government to warn that misinformation could cause economic harm.

Three youths, including a high school student and a junior high school student, have been arrested on suspicion of obstructing police duties after allegedly stealing fire extinguishers and spraying them toward a police station in Kasugai, Aichi Prefecture.

Yayoi Kusama, the Japanese avant-garde artist whose obsessive dots, nets, pumpkins and mirrored rooms grew from intensely personal visions into some of the most recognizable images in contemporary art, died at a hospital in Tokyo on August 14, 2026, at the age of 97. Her death was announced on August 27 by companies representing the artist, which said she continued painting until her final days.

A Toei bus crashed into a traffic signal in Tokyo's Edogawa Ward on the morning of August 26 after the driver lost control of the steering wheel while trying to shoo away a mosquito, leaving two male passengers injured.

Kanazawa's fire department is asking residents not to straighten or rearrange shoes removed by paramedics during emergency calls, warning that the well-intentioned gesture can delay the transport of patients by around 30 seconds and potentially interfere with medical care.

Two men who stole four luxury watches worth a combined 200 million yen from a store at Tokyo's Nakano Broadway may have carefully planned the 10-second theft, with one suspect renting an electric kick scooter shortly before the crime and investigators examining whether the other man's escape on foot was intended as a decoy.