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- All Nippon Airways
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Location of Kagoshima Airport, Japan
Ground Handlers servicing Kagoshima Airport
73 total articles
4 total articles
While some parts of the industry spend time seeking to define what makes a low-cost carrier or debating who is and is not a “true” LCC, most airlines are looking past labels and instead offering services that give them a yield premium and expand traffic flows.
This hybridisation of airlines that, by their own term, started as LCCs is exemplified by Jetstar. One feature that may be most contentious for a LCC to have is interline and codeshare relationships. Jetstar has three codeshare and 25 interline agreements following the main addition of Jetstar Japan codesharing with part owner Japan Airlines. This will further help Jetstar increase interline and codeshare revenue, which grew 80% in 2012.
The Jetstar Japan-JAL deal has its own nuances worthy of examination. Not only is this a partnership between one of the most adaptive LCCs and what was one of the most hardened legacy carriers, the relationship will enable JAL to expand its domestic network virtually and at a low cost, critical for high-cost JAL at a time of transformation in North Asia.
AirAsia Japan and Jetstar Japan are about six months old now and already there is significant change at the fledging carriers: AirAsia Japan has switched CEOs after sagging performance while Jetstar Japan will reduce its second base at Osaka Kansai, the home of Peach Aviation, Japan's first new LCC, which launched in Mar-2012 - suggesting Peach has efficiently maintained its presence in Japan's second-largest metropolitan area.
Peach launched with services to a number of secondary cities whereas AirAsia and Jetstar entered only trunk routes. But now Jetstar will launch some secondary city routes of its own, suggesting an evolving route network strategy as well as responding to the market with agility, which airlines – especially in Japan – do not typically have strength in.
Finally, Jetstar looks as if it will steal AirAsia's thunder by opening a base in Nagoya, Japan's third-largest metropolitan area. AirAsia since nearly its launch has talked of a Nagoya base, making it likely Asia's two leading LCC groups will continue to battle head on in Japan.
Airlines are charging a considerable premium on Asian services from Tokyo Haneda compared to the city's former exclusive international gateway, Tokyo Narita, driven by increased demand from business passengers as Haneda opens up to new services. The price gap has widened since Haneda opened its new international terminal and fourth runway in late Oct-2010. The convenience factor (Haneda enjoys greater proximity to downtown Tokyo) is driving pricing, making it a key facility for incumbent airlines All Nippon Airways and Japan Airlines to defend.
Tokyo Haneda, Japan’s busiest airport, Asia’s second busiest (after Beijing), now accounts for 20% of all seats on international services from the Tokyo area. Tokyo Narita has an 80% share and is the world’s 20th largest airport by system ASKs, with a considerably larger proportion of long-haul international services than Haneda.
The world's busiest air route is...Tokyo Haneda-Sapporo Chitose. Indeed the top ten are all in the Asia Pacific region, which reflects its rise as the world's pre-eminent aviation market. Many of Asia's leading route pairs are in the established markets of Japan and Australia. But it is also interesting that among the airports represented as end points in the top 10 routes, ten of the airports fail to rank in the world's Top 30 airports. Though Sapporo has an enormous seat offer to Haneda, it has far less impact elsewhere.
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