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Jetstar Japan - Could It Work?  
User currently offlineAllrite From Australia, joined Aug 2007, 1975 posts, RR: 4
Posted (4 years 9 months 2 weeks 6 days 5 hours ago) and read 2125 times:

What follows is a speculative suggestion.

The financial problems of JAL are now well known. Qantas, a OneWorld partner of JAL, has said that they are not currently contributing to any financial support, but it is doubtful that they want to see them leave OneWorld. Qantas also has joint service with JAL to Australia.

Jetstar, Qantas' low cost subsidiary, flies to both NRT and KIX from Australia and apparently has excellent brand recognition. Japan seems to be lacking in LCC services. Would it make sense for JAL and Qantas to setup a Jetstar Japan franchise offering domestic and regional LCC services?

Or would Japan's powerful unions ensure it could never happen?


Applying insanity to normality
8 replies: All unread, jump to last
 
User currently offlineJQFlightie From Australia, joined Mar 2009, 945 posts, RR: 1
Reply 1, posted (4 years 9 months 2 weeks 6 days 5 hours ago) and read 2102 times:

aslong as a A320/A321 can fit down the runways in regional Japan, im sure JQ have thought about it. Big grin
Although when JQ flew NGO - KIX could the Japanese public buy a ticket on that flight or not?
Jetstar is a very well known and established brand in Japan now, so it could possibly work....I dont know about the Japanese Unions. Are they strong? Im going to guess that they are, hence a lack of a 'real' LCC model over there.



Next Trip: PER-DPS-LOP-CGK-KUL-PVG-LHR, LCY-MAD-VLC, BCN-LYS-TLS-IST-JED-KUL-SGN-CAN-MEL
User currently offlineAllrite From Australia, joined Aug 2007, 1975 posts, RR: 4
Reply 2, posted (4 years 9 months 2 weeks 6 days 4 hours ago) and read 2047 times:

At least Japan doesn't lack for regional airports to fly from.  Smile I'd imagine that a Jetstar Japan would want a focus airport for connections to flights from Australia and Singapore and it isn't going to be Narita due to slot restrictions. What about KIX, NGO or somewhere else?


Applying insanity to normality
User currently offlineJQFlightie From Australia, joined Mar 2009, 945 posts, RR: 1
Reply 3, posted (4 years 9 months 2 weeks 6 days 4 hours ago) and read 2039 times:

they could base it in HND as it is cheaper.. but then would miss the connecting traffic from NRT. But there are some destinations that i think would be great like CTS,NGO, FUK, NGS and YOK just to name a few ... Big grin i love wishful thinking Big grin


Next Trip: PER-DPS-LOP-CGK-KUL-PVG-LHR, LCY-MAD-VLC, BCN-LYS-TLS-IST-JED-KUL-SGN-CAN-MEL
User currently offlineCentrair From Japan, joined Jan 2005, 3598 posts, RR: 20
Reply 4, posted (4 years 9 months 2 weeks 6 days 3 hours ago) and read 1971 times:

Japan does have some LCC; Starflyer, AirDo, Skymark & Skynet Asia Airways. Almost all of them are based out of HND.

To me the best options would be FUK and NGO.
FUK gets LCCs but has none based there. There are many airports without LCC service as the Japanese ones mostly serve HND to Kagoshima, Fukuoka, Sapporo and Okinawa. NGO has nothing and most of the smaller airports have nothing.

The real problem is that Japan is not that big and much of the domestic flying market are for between Nagoya, Tokyo, Osaka and Okinawa, Kyushu beaches and Hokkaido.
FUK-Niigata would be nice if it were cheap but would Niigata-Okayama be worth even competing on?

The newest LCC, Starflyer, has had problems attracting business even though it has a great model, an awesome livery (black) and lots of amenities. They have major corporate investment and were planning a lot of things. Sadly they couldn't get a lot of passengers. So they entered into a codeshare with NH which boosted passengers by 70%. They are testing Kitakyusu-Seoul in a charter form to see the validity of the route. If it works, they will make it regular. Problem is they do not serve anywhere else in Japan and the Japan-Korea market is dominated by KE and OZ (not even JL or NH have as much service).

I think that a Jetstar would be cool but in the end the traveling population in Japan...those with the money & time to travel...older people will stick to the traditional Japanese carriers. It just sucks for everyone else.



Yes...I am not a KIX fan. Let's Japanese Aviation!
User currently offlineSydscott From Australia, joined Oct 2003, 2905 posts, RR: 20
Reply 5, posted (4 years 9 months 2 weeks 5 days 23 hours ago) and read 1796 times:



Quoting Centrair (Reply 4):
I think that a Jetstar would be cool but in the end the traveling population in Japan...those with the money & time to travel...older people will stick to the traditional Japanese carriers. It just sucks for everyone else.



Quoting Centrair (Reply 4):
Japan does have some LCC; Starflyer, AirDo, Skymark & Skynet Asia Airways. Almost all of them are based out of HND.

I'd say it's more likely that JQ would enter the Japanese market by buying the maximum Foreign shares available in one of the exisitng LCC's and then re-branding it.

However, I'd have thought JQ would need a bigger presence in Japan first. If they were serious they'd have to deploy some A332 capacity to fly between Singapore and Japan as well as CNS-KIX and between Australia and either NGO or FUK. That would give JQ at least 7 to 10 daily international services in their own right plus codeshares with all of the Oneworld Airlines to assist with traffic flow. The problem will be obtaining sufficient NRT slots to connect to the Oneworld airlines flights.


User currently offlineAllrite From Australia, joined Aug 2007, 1975 posts, RR: 4
Reply 6, posted (4 years 9 months 2 weeks 5 days 23 hours ago) and read 1785 times:



Quoting Centrair (Reply 4):
So they entered into a codeshare with NH which boosted passengers by 70%. They are testing Kitakyusu-Seoul in a charter form to see the validity of the route. If it works, they will make it regular. Problem is they do not serve anywhere else in Japan and the Japan-Korea market is dominated by KE and OZ (not even JL or NH have as much service).

I think that a Jetstar would be cool but in the end the traveling population in Japan...those with the money & time to travel...older people will stick to the traditional Japanese carriers. It just sucks for everyone else.

I was thinking of a Jetstar Japan as a joint venture between QF and JAL, so would expect it to be JAL co-branded and for JAL to direct passengers there removing the need to fly some of their more marginal domestic routes. JAL already flies people to Australia on Jetstar doesn't it?

I think the real benefit might be for regional flying rather than domestic routes, especially if it allows connectivity with other Jetstar networks. I doubt if you would get too many Japanese flying FUK-TPE-SIN-DRW-SYD, but foreigners might travel to Japan with a stopover if its cheap enough.

I can see one potentially popular route being Australia - Japanese Hub - Sapporo for access to Hokkaido. Sapporo is currently a long rail journey from Tokyo or Osaka and Japanese airlines are not really geared towards direct foreign bookings so far as I can see.



Applying insanity to normality
User currently offlineMdavies06 From United Kingdom, joined Aug 2009, 380 posts, RR: 0
Reply 7, posted (4 years 9 months 2 weeks 5 days 23 hours ago) and read 1780 times:

I think having JQ Japan would definitely be a good way to save JL. I can see JL outsourcing many of its domestic routes and some short haul regional routes to this entity. This would help to resolve some of the high cost base issues with JL (although running an airline in Japan will not be cheap anyway with the high landing fee, labour cost, environmental charges etc, but we are of course speaking relative to JL and NH). One might argue that many Japanese would prefer to fly with a domestic 'branded' airline in Japan, but I am not sure if this really is true or not in practice.

As for base, I think that depends on the scale and customer base you want. But any large scale operation will have to be based around ITM or HND, or you would be fighting an uphill battle unless there is a massive cost base advantage.


User currently offlineJQFlightie From Australia, joined Mar 2009, 945 posts, RR: 1
Reply 8, posted (4 years 9 months 2 weeks 5 days 22 hours ago) and read 1738 times:



Quoting Sydscott (Reply 5):
However, I'd have thought JQ would need a bigger presence in Japan first. If they were serious they'd have to deploy some A332 capacity to fly between Singapore and Japan as well as CNS-KIX and between Australia and either NGO or FUK. That would give JQ at least 7 to 10 daily international services in their own right plus codeshares with all of the Oneworld Airlines to assist with traffic flow. The problem will be obtaining sufficient NRT slots to connect to the Oneworld airlines flights.

rumour has it that IF and WHEN JQ get the 787's Japan is the first rout to swap from A332 Big grin



Next Trip: PER-DPS-LOP-CGK-KUL-PVG-LHR, LCY-MAD-VLC, BCN-LYS-TLS-IST-JED-KUL-SGN-CAN-MEL
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