Japan's LCCs resume growth as domestic market recalibrates

Japan's domestic LCC market is growing again. There was a slight contraction as Jetstar Japan recalibrated, but now Jetstar Japan is growing again. However, its growth is offset by Peach shifting capacity to the international operation. Growth from Vanilla Air and the newly launched AirAsia Japan is positioning the LCC sector for expansion.

Yet LCC market share may remain around 10% as Skymark, one of Japan's so-called "new age" airlines, resumes growth. Jetstar Japan is about two thirds the size of Skymark domestically. Peach and Vanilla Air plan to merge, and their combined size is almost as large as Jetstar Japan.

CAPA's LCCs in Northeast Asia Summit in Seoul in Jun-2018 will explore the dynamics of aviation in Japan and implications for foreign airlines serving the country.