All Nippon Airways (ANA) president Shinichiro Ito said the carrier is targeting annual sales of between JPY150 billion and JPY200 billion (USD1.8 billion and USD2.5 billion) in five years from its LCC subsidiaries launching in 2012, acccording the The Nikkei reports. AirAsia Japan "will add five or six planes to its fleet each year, bringing the total to 25-30 aircraft in fiscal 2016," Mr Ito noted, adding that while the LCCs will "take away some of ANA's customers, they will contribute to group earnings". Peach Aviation, meanwhile, launched operations on 01-Mar-2012. [more - CAPA Blog]
ANA expects LCC subsidiaries to achieve annual sales of USD1.8bn to USD2.5b in five years
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Philippine Airlines (PAL) has forged a partnership with All Nippon Airways (ANA) in one of the first moves by the Philippine carrier since Lucio Tan’s LT Group regained control in Sep-2014. The new codeshare should significantly improve PAL’s position in Japan, the airlne's largest international market.
But the deal does not indicate a shift in strategy for PAL, which had been under control of Philippine conglomerate San Miguel since Apr-2012. The codeshare only covers the Philippines-Japan market and domestic connections in each country.
PAL needs stronger partnerships as well a much larger portfolio of codeshares. PAL particularly needs a partner for the US market with ANA a potential suitor.
PAL is instead moving forward with a risky plan to launch service in its own right to New York.
Jetstar Japan launches critical Osaka Kansai base as Japan posts 8% domestic traffic growth
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.