1-May-2013 12:13 PM

JAL Group notes domestic competition from LCCs and Shinkansen, international competition increasing

JAL Group noted (30-Apr-2013) it faces "substantial and intensifying competition in routes, services and fares in both the domestic and international markets". The company explained, "On domestic routes, we face tough competition with another major Japanese airline, new low cost airlines, and the Shinkansen, and competition with LCCs is also seen to intensify". On international routes, the carrier noted "competition with major Japanese and international airlines is getting increasingly fierce, and the increase of departure and landing slots in Haneda and Narita airports is certain to intensify competition". While noting it has a stake in Jetstar Japan, the company noted: "At present, impacts of LCCs have been contained within our estimated range. But if competition with Japanese and international LCCs intensify, we will be compelled to reduce our fares. And if customers shift from JAL Group flights to LCCs including Jetstar Japan in large numbers, it could negatively affect the group’s LCC strategies, as well as our business and operations". [more - original PR]

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