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Osaka Kansai-based LCC Peach Aviation is looking to consolidate its position in the Japanese LCC market. Although it is the second largest (Jetstar Japan is first), Peach is the only known profitable LCC. Peach is expected to open a base at Tokyo Narita, becoming the fourth LCC with an operation there. Skymark has pulled down its Narita base following weak demand.
At Narita, Peach - part owned by All Nippon Airways - will compete with Jetstar Japan but also Vanilla Air, which is wholly owned by ANA. Peach appears to be taking the view the market is competition between itself and Jetstar and with Vanilla Air something of a distraction. No doubt the ANA strategy is confused – a conflicted scenario that was inevitable from its involvement in two domestic LCCs in Japan.
Peach will further boost its position by operating international flights from Tokyo Haneda, becoming the first new LCC at Haneda. Peach already operates international services while Jetstar Japan will only open its first international route on 28-Feb-2015. Meanwhile Spring Airlines Japan, with low yields and load factors, has increased its capitalisation while it waits to serve more lucrative international destinations.
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