Spring Airlines deputy GM strategy/international brand manager Jonathan Hutt, speaking at CAPA's World Aviation Summit in Amsterdam, stated (26/27-Nov-2013) the carrier expects five to eight new LCCs to launch in China in coming years as a result of new government policy. Mr Hutt expected LCCs there to be a LCC at Guangzhou and Beijing. Shanghai-based Juneyao Airlines has announced its LCC subsidiary, Jiu Yuan Airlines, will be based at Guangzhou. [more - CAPA Analysis]
Spring Airlines predicts five to eight new LCCs, including in Guangzhou and Beijing
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LCC CEOs to lead discussions at CAPA North Asia LCC Summit, Tokyo, Jun-7/8-2016
Leaders of North Asia’s low cost carriers (LCCs) will gather in Narita on Jun-7/8 for CAPA’s North Asia LCC Summit.
Hosted by Narita Airport, the Summit marks 12 years of CAPA’s flagship series of LCC events in Asia and marks CAPA’s second return to Japan.
Featuring over 40 speakers, including senior executives from all of North Asia's LCCs, and with simultaneous translation in English, Japanese, Korean and Mandarin, the Summit will explore the commercial drivers for LCC growth in this region, as the market opens.
North Asia has yet to experience the rapid expansion of LCCs that has occurred in Southeast Asia - but that is changing quickly.
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.