American Airlines and Japan Airlines have gained Chinese government approval to codeshare on routes to China (Shanghai Daily, 08-Apr-2011). The approval will enable JAL to sell tickets on American Airlines routes between China and the US – including Shanghai-Los Angeles launched on this week – according to American Airlines Pacific VP Theo Panagiotoulias. The agreement is expected to provide a challenge to China's domestic carriers. "We can offer better transit services for passengers from China to the United States with our strong flight network in the US," Mr Panagiotoulias said.
American Airlines and Japan Airlines gain approval to codeshare on China routes
You may also be interested in the following articles...
China-Japan aviation: LCCs Peach, Jetstar Japan gain traffic rights, raising overcapacity concerns
Jetstar Japan and Peach Aviation have received air traffic rights for China which, if utilised, would grow the Japanese LCC footprint in China – Japan's largest visitor source market. Spring Japan became the first Japanese LCC to serve China in Feb-2016. The absence of Japanese LCCs in China may seem surprising, but there are regulatory hurdles, market access questions and conservatism at Japanese LCCs. AirAsia Japan, launching in 2017, will likely leverage the group's China experience; it is the largest non-greater China airline group serving China.
The prospect of further growth comes as incumbents cite overcapacity. What was once a profitable market now only produces returns in the peaks. All Nippon Airways, the largest airline between Japan and China, reported lower revenue on the back of "a deterioration in the supply-demand environment". Spring China has told Bloomberg that some competitors "aren't well-prepared", and will be "phased out". Overall Japanese LCC routes and capacity may be small but will be watched by Chinese airlines, ever mindful of the need to find new business models.
Northeast Asia's outlook remains bright – and perhaps more so than before
A few years ago amidst the economic downturn it was Northeast Asia – with its main Chinese market – that was a strategic bright spot for aviation.