ROUTES ASIA: AirAsia Japan Confirms Initial Flight Schedule

AirAsia Japan, the new Tokyo Narita-based low-cost joint venture between AirAsia and All Nippon Airways (ANA) will compete directly with established rivals when it inaugurates passenger operations in August 2012. The carrier revealed its planned route network in October last year when applied for an operation permit with Japan’s Ministry of Land, Infrastructure, Transport & Tourism. It has now uploaded its flight schedule and, as expected, will initially serve the markets of Fukuoka, Okinawa and Sapporo Chitose from the Japanese capital with effect from August 1, 2012 with international links into South Korea due to follow from October 1, 2012.

The carrier plans to offer up to four daily rotations between Tokyo Narita and Sapporo Chitose; up to two daily flights from the capital to Fukuoka and a single daily service to Okinawa. The international routes to Busan and Seoul Incheon will both be operated on a daily basis. According to the schedule upload, AirAsia Japan will fly using the IATA code ‘JW’.

The table below highlights the strong competition that AirAsia Japan will face on these routes when it launches its own services later this year…

By the time that AirAsia Japan launches it will face another competitor on the three domestic routes with Jetstar Japan, the new joint venture between oneworld partners Japan Airlines (JAL) and Qantas, due to commence operations in July 2012. Although the carrier has confirmed its intent to also serve Fukuoka, Okinawa and Sapporo Chitose from its Tokyo Narita base, it has not yet opened reservations for its flights.

AirAsia Japan, will follow the traditional ‘AirAsia’ business model that has already been successful in the Malaysia, Indonesia, Thailand and most recently in and which has now been expand into the Philippines and Vietnam. Alongside domestic connections the venture will offer non-stop flights into North East Asia and in particular South Korea, Taiwan and China. It aims to bring the Low-Cost Carrier (LCC) model successful throughout the region into Japan and in the process making it more affordable for the average Japanese national to travel both domestically and regionally. “The low-cost airline will also help stimulate greater access to Japan through its affordable fares which in turn will help the economic growth of the country as evidenced in other regions where AirAsia is currently serving,” according to the budget carrier.

Under the terms of the agreement and meeting with Japanese aviation laws on airline ownership, ANA will hold the majority shareholding in the start-up with a 51 per cent stake. AirAsia will hold a 33 per cent voting share and 16 per cent non-voting share through its wholly-owned subsidiary AA International. The airline will operate completely independently from ANA’s other budget venture Peach Aviation and although an agreement has been reached that ANA and AirAsia will not directly compete with the new start-up, there will be no restrictions between the budget operators, albeit Peach Aviation will not be pemitted to open a base at Tokyo Narita.

Both ANA and AirAsia firmly believe that AirAsia Japan will be a success, despite the increasing low-cost competition, claiming “the Japanese market possesses the necessary ingredients for growth such as the population’s strong propensity to travel, its high per capita income coupled with deep and significant internet penetration.” In Japan, the aviation market is undergoing rapid transformation with developments including the expansion of Open Skies agreements and increased domestic competition from road and rail-based travel.