Spring Airlines moves to establish Japanese base while ANA sees cannibalisation from new LCCs

The launch excitement of three new low-cost carriers in Japan, by some arguments the country's first LCCs, has passed but Japan continues to see significant developments. First, Spring Airlines is finalising plans to launch a Japanese subsidiary. Spring Airlines Japan is expected to launch in late 2013 on domestic services with international services to commence in 2014. Spring Airlines will be competing in a space occupied by the AirAsia and Jetstar groups, which are well versed in LCC operations. While AirAsia Japan and Jetstar Japan serve trunk routes for now, Spring will likely serve secondary cities from its planned Tokyo Narita base.

Japan's new LCCs are increasing passenger numbers - travel propensity is low in Japan - but there will of course be some levels of cannibalisation, although some refuse to acknowledge this. All Nippon Airways will end its Tokyo Narita-Seoul Incheon service, which competes with AirAsia Japan's new service, following Japan Airlines' withdrawal on the Tokyo Narita to Osaka Kansai route, which Jetstar Japan also operates. These reductions are minor - but only the start.