Japan's MLIT stated Japan's international competitiveness in the field of transportation has declined according to a report in the Nikan Koku. The MLIT added that while Japan is declining, the air transport industries of South Korea and China are expanding. MLIT stated in 2010, Japan's share of the international aviation market stood at more than 5%, declining to 2.5% in 2010. In 2010, Singapore had a 3.1% share of the international air transport market, with Korea (3.1%) and China (2.6%) also having a larger share than Japan.
Japan's share in aviation field declining: MLIT
You may also be interested in the following articles...
Jetstar Asia Part 2: The LCC's hiatus in fleet expansion persists in 2017; overcapacity concerns
This is the second half of an analysis report on Jetstar Asia. The first part examined the airline’s improved profitability and its focus on growing interline and codeshare traffic, which has boosted yields. This part will focus on expansion opportunities in secondary markets and Jetstar Asia’s decision to maintain capacity at current levels.
Jetstar Asia’s fleet has been held steady at 18 A320s since early 2014, when it reduced its fleet by one aircraft and suspended fleet expansion in response to overcapacity in the Singapore short haul market. Jetstar Asia is continuing the hiatus in its fleet expansion in 2017 as it believes its home market still suffers from overcapacity.
China-Japan: Peach, Jetstar Japan & China United the latest LCCs to enter Asia's 3rd largest market
Japan-China is the third largest international country pair in Northeast and Southeast Asia. The market has expanded due to Chinese outbound visitor growth, with Chinese visitor numbers doubling from 2.4 million in 2014 to 5.0 million in 2015, and 9M2016 shows a further 30% expansion. LCCs account for approximately 10% of the market, and there are an expected three further LCC entrants in the Japan-China market: Peach Aviation, Jetstar Japan and China United Airlines. Their entry, however, comes after the major boom: eight airlines have entered the market since 2014.
The impact of the additional LCCs will be minimal in network size: Peach's four weekly Osaka-Shanghai flights are in addition to an existing 117 weekly flights. Over the long term there are strong opportunities for LCCs (as evidenced by the first mover Spring Airlines), but in the near future the greatest impact from additional LCCs will be in reminding Chinese full service airlines of alternative business models and their own need to reform. To a Chinese airline a Japanese LCC is almost paradoxical: an airline trying to be low cost in a high cost country with low population growth. Yet the relative success of Japanese LCCs provides a case study – and also market challenges.