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Jetstar Japan launches critical Osaka Kansai base as Japan posts 8% domestic traffic growth

Analysis

Jetstar Japan has finally opened its second base at Osaka Kansai, becoming the first Japanese LCC to have a second base. First mooted in mid-2012 for an Oct-2012 launch, Jetstar Japan has had to delay the base primarily for falling on the bad side of Japan's regulator over not following its internal maintenance procedures. Jetstar Japan has been flying to and from Osaka Kansai but had been unable to establish a maintenance and engineering base that would allow for more flexible operations.

Jetstar Japan is growing Osaka Kansai capacity by 53% but only by adding services on its existing four routes. All four destinations - Fukuoka, Naha, Sapporo and Tokyo Narita - have service from Kansai-based Peach. Peach will have a larger presence in all of those markets except Tokyo Narita. Peach also serves other domestic destinations from Kansai and has an international network; Jetstar Japan is only domestic and is Japan's fourth-largest domestic carrier.

The Kansai base is critical to boosting Jetstar Japan's utilisation, which has significantly lagged its main LCC competitor Peach.

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