As new Japanese LCCs – AirAsia, Jetstar and Peach – settle in, strategy differences become apparent

References to "the Southwest model" or "the Ryanair model" can be a common refrain in the low-cost carrier industry, but no two LCCs are identical. Indeed, there are a number of models that have seen success. So it comes as no surprise that Japan's nascent LCC industry is diverging, with this year's three new entrants - AirAsia Japan, Jetstar Japan and Peach - showing their future more clearly now that their operations are bedding down.

The divergence is not the result of differentiation in an over-competitive market; there is still plenty of untapped demand in Japan. Rather the nuances at the three new LCCs are reflective of different shareholders and market positions. There are different outlooks on domestic-international balances but most commonly the distinctions go to the heart of industry discourse on hybridising, adding services to tap new markets and increase yields. Jetstar Japan is set to be the most hybrid, followed by AirAsia and then Peach.