JAL Group noted (30-Apr-2013) it faces "substantial and intensifying competition in routes, services and fares in both the domestic and international markets". The company explained, "On domestic routes, we face tough competition with another major Japanese airline, new low cost airlines, and the Shinkansen, and competition with LCCs is also seen to intensify". On international routes, the carrier noted "competition with major Japanese and international airlines is getting increasingly fierce, and the increase of departure and landing slots in Haneda and Narita airports is certain to intensify competition". While noting it has a stake in Jetstar Japan, the company noted: "At present, impacts of LCCs have been contained within our estimated range. But if competition with Japanese and international LCCs intensify, we will be compelled to reduce our fares. And if customers shift from JAL Group flights to LCCs including Jetstar Japan in large numbers, it could negatively affect the group’s LCC strategies, as well as our business and operations". [more - original PR]
JAL Group notes domestic competition from LCCs and Shinkansen, international competition increasing
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CAPA LCCs in North Asia Summit: Osaka, 13/14-Jun-2017 to be hosted by Kansai Airports
OSAKA, 22 September 2016 – CAPA - Centre for Aviation is pleased to announce that Osaka will be the host city for the annual CAPA LCCs in North Asia Summit on 13-14 June 2017.
The Summit, to be hosted by Kansai Airports, is one of the largest LCC gatherings in the region, attracting LCC CEOs from across Asia.
“Kansai International Airport as the gateway to Kansai region welcomes the CAPA LCCs in North Asia Summit in Osaka. We are extremely proud that this Summit will be hosted by Kansai Airports with the opportunity to introduce the attractiveness of the Kansai Region. For several years the LCC market has been on strong growth at KIX, where we have the number one LCC network among Japanese airports. We are really delighted to host this event in 2017 since our LCC Terminal extension will be completed by the first quarter next year”, said Yoshiyuki Yamaya, Representative Director and CEO, Kansai Airports, and Emmanuel Menanteau, Representative Director and Co-CEO, Kansai Airports.
HK Express receives first A321 and awaits A320neo as Hong Kong's LCC rate grows to 10 percent
HK Express continues to work towards its goal of ending 2018 with 50 aircraft. HK Express will end 2016 with 18 aircraft, including its first A321s and A320neo. The A321s provide additional capacity per movement – important to bring costs down, but also to grow where traffic and slots (at Hong Kong and abroad) do not permit.
Asian LCCs are increasingly gravitating to larger aircraft to try to overcome insufficient infrastructure. Larger narrowbodies at LCCs gained wide awareness with AirAsia's A321 order, although many other LCCs will operate larger types before AirAsia receives its first A321. The A320neo brings additional range, besides the usual efficiency improvements.
HK Express plans to end 2017 with 32 aircraft. Even if sustainable markets can be found, this is rapid growth for an opaque slot system at Hong Kong International Airport. HK Express' continued growth will further boost the share of seats that LCCs operate at Hong Kong. LCCs account for 10% of capacity at Hong Kong in 2016 – up from 5% in 2012. The gains have mostly been earned due to HK Express. With as much success as HK Express claims, it might now be time for the LCC to open its books and present transparent financial reports.