Jetstar Airways and Spring Airlines reportedly plan to operate domestic routes in Japan (Yomiuri/Bloomberg, 08-Mar-2011). The LCCs will raise funds from Japanese companies to establish units in Japan to satisfy regulations requiring companies that operate domestic routes have less than one-third foreign capital. The carriers have reportedly approached Japan’s MLIT with their plans. The ministry will reportedly approve the move if the companies meet the required conditions.
Jetstar and Spring Airlines to establish units in Japan
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Jetstar Japan and Peach Aviation have received air traffic rights for China which, if utilised, would grow the Japanese LCC footprint in China – Japan's largest visitor source market. Spring Japan became the first Japanese LCC to serve China in Feb-2016. The absence of Japanese LCCs in China may seem surprising, but there are regulatory hurdles, market access questions and conservatism at Japanese LCCs. AirAsia Japan, launching in 2017, will likely leverage the group's China experience; it is the largest non-greater China airline group serving China.
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