Japan domestic aviation, ANA & JAL: LCCs, freight to grow

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All Nippon Airways and Japan Airlines are shifting away from their domestic heartland as they prepare for international revenue to overtake domestic revenue. In the long term ANA will reduce its domestic network by 3% by maintaining frequencies but using smaller aircraft. JAL will grow its domestic market by 3%, but through upgauging as it reduces its domestic fleet.

LCCs are an important and fast growing development. There will be a net increase of 20 narrowbody aircraft in ANA's LCC fleet, including long range narrowbodies. JAL has a minority stake in Jetstar Japan, which will grow its fleet, but JAL also wants to deepen its involvement in the LCC sector.

Cargo is gaining more attention, and ANA has made a partnership with Nippon Cargo Airlines. ANA will take two 777Fs – its first long range freighters.

JAL would like to re-enter the freight aircraft business, but lacks pilots.

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