Cebu Pacific CEO advisor Garry Kingshott, speaking at CAPA's LCCs & New Age Airlines in North Asia Conference in Macau, stated (06-Sep-2012) he expects the launch of three low-cost carriers in Japan this year will help build awareness of the LCC model in Japan, which will benefit all LCCs operating in the country including Cebu Pacific. Mr Kingshott said it has taken time for the Japanese market to get accustomed to Cebu Pacific's service since it launched flights to Japan in 2010. He says Cebu Pacific's only Japanese route, Manila-Osaka Kansai, is now performing well, but there continue to be "issues" with passengers becoming accustomed to the LCC model. The launch of Peach, Jetstar Japan and AirAsia Japan in recent months should help build awareness of the LCC model in Japan and in particular get Japanese passengers used to the concept of online ticket bookings. "We are delighted to have LCCs in Japan established," Mr Kingshott said, noting, "It will be nice to have some support from local LCCs." Cebu Pacific is interested in expanding its Japanese network but Japanese authorities currently prohibit all Philippine carriers from adding capacity to Japan due to ICAO-related restrictions.
Cebu Pacific welcomes launch of Japanese LCCs: CEO advisor
You may also be interested in the following articles...
China’s emergence as an international force is provoking new marketplace conditions
Northeast Asia continues to drive growth, large in size, complexity and with future implications inside and outside the region. China is a singular attraction and remains in its golden years of expansion, with opportunity mostly constrained by infrastructure.
Indigo Partners assesses ultra-low cost airline (ULCC) investment opportunities in Southeast Asia
US airline investment firm Indigo Partners is assessing new low cost airline investment opportunities in Asia with a focus on the ultra-LCC or ULCC model. Indigo has not had an investment in Asia since selling its stake in Singapore-based Tigerair five years ago, but currently has large stakes in LCCs based in Europe and North America.
Indigo believes there could be room for a ULCC in the Southeast Asian market despite already intense competition and a huge LCC order book, because the LCCs now operating in this region are not true to the LCC model. Several Southeast Asian LCCs, including Tigerair, are owned by full service airline groups, leading to a dilution of the typical LCC model.
India is also a market of interest for Indigo. However, the firm is not interested in North Asia at this point, despite that region's much lower LCC penetration rate. Australia is also not of interest as it is already mature.