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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Japanese LCCs could tackle booming Chinese market as AirAsia Japan launches and Spring Japan expands
There is no shortage of superlatives to describe the passenger traffic growth between China and Japan. Chinese visitors are quickly becoming Japan's single largest tourism source. China Southern's Japan passenger numbers in the first nine months of 2015 have exceeded its traffic for the full year 2014. 14 Chinese airlines intend to serve Japan at the end of 2015, including five carriers which have entered in 2014 or 2015. China's Spring Airlines has virtual bases at Nagoya and Osaka Kansai and is planning to construct hotels in Japan to accommodate the visitors it is bringing over.
Japan's LCC sector is vibrant, with five start-ups in four years. They have helped rejuvenate Japanese traffic despite the shrinking economy and decreasing local population. Yet they have remained absent from the China-Japan market. The 2012 China-Japan territorial dispute weakened travel conditions, and since then the local LCCs appear to have felt overwhelmed by the influx of Chinese carrier capacity. This will start to change: AirAsia Japan plans to launch in Mar-2016 and eventually serve China, a market its affiliate carriers know well. Spring Airlines Japan, the locally established JV of Shanghai-based Spring, will finally commence international services in 2016 and is making two Chinese cities, Chongqing and Wuhan, its first destinations. Despite the growth already witnessed, this is only the beginning for the market. Japanese LCCs will have a role in its expansion.
China-Japan market grows with doubling of tourism, four new airlines and greater city-pairs
There is no mistaking the political tension from China in creating a special holiday, with full military parade, on 03-Sep-2015 to commemorate “The 70th anniversary of Chinese People’s Anti-Japanese War”. Relations between Japan and China have been sour, including in late 2012 when air traffic quickly dissipated. But despite what the special holiday’s name may suggest, Japan and China’s aeropolitical relations are at their strongest in recent times.
China has granted approval for more services from prized Tokyo Haneda that were agreed upon some years ago but not implemented due to frosty relations. But Haneda is a small part of the growth between China and Japan.
Chinese visitors to Japan have doubled in 2015, and four new Chinese airlines launched Japanese service in 2014 and 2015. 34 Chinese cities have service to Japan in 2015, up from 16 in 2010. Most growth has occurred from Shanghai, with LCC Spring Airlines adding as many seats as China Eastern. Spring now has a 7% share of the China-Japan market.