JAL to boost its LCC growth strategy by adding another airline
Japan Airlines’ plan to buy a controlling stake in Spring Airlines Japan is further evidence of the way that the Japanese majors are increasing their focus on LCCs, and also demonstrates how challenging it is – particularly for an LCC – to survive outside the country’s two dominant airline groups.
While Spring Japan is a small player in the domestic market, it will still boost the JAL group’s LCC portfolio and lift its share somewhat closer to that of rival ANA Holdings.
More importantly, Spring Japan also has the potential to improve the JAL Group’s access to the China leisure market. However, many details of the proposed acquisition are yet to be revealed, including such important factors such as how Spring Japan will align with JAL’s existing LCC joint venture Jetstar Japan, and whether Spring Japan will retain network or ownership links with the current Chinese stakeholder, Spring Airlines.
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