Japan's StarFlyer looks to expand its successful niche – but change is afoot

Japanese aviation is dominated by All Nippon Airways and Japan Airlines, who account for nearly 75% of capacity in the world's fourth largest domestic market. A number of carriers divide the rest, and while they may be small, they are looking to grow domestically, branch out internationally and be innovative to set themselves apart from the ANA and JAL behemoths.

StarFlyer is one of those carriers, and has had profits to support its strategic positioning. It is now slightly accelerating aircraft deliveries to grow domestically - it was the second-largest recipient of newly released slots at prized Haneda airport - and is looking cautiously at the international market.

But mighty change is afoot in Japan, and as LCCs offer seats at prices never before seen and incumbents like Skymark flex their muscles, StarFlyer will see tests of its model of boutique flights that come at a yield premium to the LCCs but priced lower than ANA or JAL. There is comfort in obscurity, with ANA codesharing and taking an equity stake in publicly-listed StarFlyer.

But there are many chapters still to be written in Japanese aviation.