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JL And QF/JQ To Launch Joint Venture LCC?  
User currently offlineDFWEagle From United States of America, joined Dec 2006, 1071 posts, RR: 9
Posted (3 years 2 months 5 days 9 hours ago) and read 2771 times:

According to this report, JAL and Jetstar (Qantas subsidary) are planning to launch a new Japanese low cost carrier as a joint venture, likely using the Jetstar brand:

http://www.reuters.com/article/2011/...0/jal-qantas-idUSL3E7HU30F20110630

JAL and Jetstar would each have a 30% stake, with the rest held by other Japanese investors. This would comply with Japanese foreign ownership restrictions, while allowing JQ/JL to maintain overall control together (60%), with equal shares of the company.

The carrier would initially enter the Japanese domestic market and later expand to international routes.

There seems a lot of potential for low cost carriers to develop in the Japanese market, which has high fares and little LCC activity so far. Also, a JQ-like operation would be more suitable for international beach markets like Guam, Saipan, Denpasar etc., where JAL has trouble making money itself. Jetstar is probably the most successful example of a legacy carrier setting up an LCC, and they have plenty of experience, including with foreign joint ventures (Jetstar Asia and Jetstar Pacific).

The original report they cited in Nikkei is subscription only.


Ryan / HKG
13 replies: All unread, jump to last
 
User currently offlineaznmadsci From United States of America, joined Dec 2007, 3662 posts, RR: 5
Reply 1, posted (3 years 2 months 5 days 8 hours ago) and read 2616 times:

Would they be based out of NRT, KIX, or NGO?


The journey of life is not based on the accomplishments, but the experience.
User currently offlineLDVAviation From United States of America, joined Dec 2008, 1061 posts, RR: 5
Reply 2, posted (3 years 2 months 5 days 6 hours ago) and read 2495 times:

Quoting DFWEagle (Thread starter):
JAL and Jetstar would each have a 30% stake, with the rest held by other Japanese investors. This would comply with Japanese foreign ownership restrictions, while allowing JQ/JL to maintain overall control together (60%), with equal shares of the company.

Great move by JAL/QF.

AirAsia had been eyeing the Japanese market. Now, JAL/QF will get a jump on them and everyone else. (How will ANA respond?)

I think JetStar codeshares with AirAsia on some routes. Could there be a larger cooperation agreement in the works, wherein JetStar (Japan) operates as the AirAsia affiliate in Japan?


User currently offlineTomassjc From United States of America, joined Jan 2010, 868 posts, RR: 2
Reply 3, posted (3 years 2 months 5 days 6 hours ago) and read 2481 times:
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Quoting LDVAviation (Reply 2):
(How will ANA respond?)

Aren't they launching "Peach" next year?



When once you have tasted flight, you will forever walk the Earth with your eyes turned skyward -Leonardo DaVinci
User currently offlineDFWEagle From United States of America, joined Dec 2006, 1071 posts, RR: 9
Reply 4, posted (3 years 2 months 5 days 6 hours ago) and read 2441 times:

Quoting aznmadsci (Reply 1):
Would they be based out of NRT, KIX, or NGO?

Nothing announced, but the article suggests it will be NRT, which is increasing its available slots over the next year or so.

Quoting LDVAviation (Reply 2):
(How will ANA respond?)

Actually, ANA already recently announced their own LCC, to be called “Peach Aviation”, based at KIX.

http://www.flypeach.com/?lang=en

I think JL/QF will be better positioned though, with the strong existing Jetstar brand/network and the additional knowledge and experience that QF/JQ will bring to the venture.



Ryan / HKG
User currently offlineallrite From Australia, joined Aug 2007, 2062 posts, RR: 4
Reply 5, posted (3 years 2 months 5 days 3 hours ago) and read 2265 times:

I've been looking forward to this. Hopefully they will expand to server international destinations from Japan, giving Jetstar some onward services in North Asia.

Quoting LDVAviation (Reply 2):
I think JetStar codeshares with AirAsia on some routes. Could there be a larger cooperation agreement in the works, wherein JetStar (Japan) operates as the AirAsia affiliate in Japan?

Jetstar and AirAsia were/are going to be involved in some kind of aircraft purchasing deal (better bargaining power through size) but not codeshare or operations. They are competitors.



Applying insanity to normality
User currently offlinetruemanQLD From Australia, joined Feb 2007, 1533 posts, RR: 0
Reply 6, posted (3 years 2 months 5 days 3 hours ago) and read 2214 times:

Wow, I didnt expect this (though I dont know why, it makes sense). Great thinking by QF/JQ and JL! Jetstar has been a very successful brand so far and there is no reason why this couldnt work out! I am assuming they will be operating A320's initially. Also, what about 787's? Will they get these from QF or from JL? Or a new order? hmmm

User currently offlineallrite From Australia, joined Aug 2007, 2062 posts, RR: 4
Reply 7, posted (3 years 2 months 5 days 1 hour ago) and read 2110 times:

According to The Australian newspaper, Qantas has denied that a deal has been signed, though presumably they could still be working in the background on plans.


Applying insanity to normality
User currently offlinetruemanQLD From Australia, joined Feb 2007, 1533 posts, RR: 0
Reply 8, posted (3 years 2 months 4 days 19 hours ago) and read 1833 times:

Quoting allrite (Reply 7):
According to The Australian newspaper, Qantas has denied that a deal has been signed, though presumably they could still be working in the background on plans.

Yeah I dont think that means much, I am sure they will have a big press announcement in Japan to announce it all properly and wont say anything until then.


User currently offlineDFWEagle From United States of America, joined Dec 2006, 1071 posts, RR: 9
Reply 9, posted (3 years 2 months 4 days 17 hours ago) and read 1735 times:

Quoting allrite (Reply 7):
According to The Australian newspaper, Qantas has denied that a deal has been signed, though presumably they could still be working in the background on plans.

The original article also says that no deal has been signed, but that JL and QF expect to sign such a deal next month. I guess they are still working out the details.



Ryan / HKG
User currently offlineaznmadsci From United States of America, joined Dec 2007, 3662 posts, RR: 5
Reply 10, posted (3 years 2 months 4 days 13 hours ago) and read 1616 times:

Quoting DFWEagle (Reply 9):
The original article also says that no deal has been signed, but that JL and QF expect to sign such a deal next month. I guess they are still working out the details.

Could it be part of this: Qantas To Announce New Strategy On Aug 24



The journey of life is not based on the accomplishments, but the experience.
User currently offlinekoruman From , joined Dec 1969, posts, RR:
Reply 11, posted (3 years 2 months 4 days ago) and read 1443 times:

If Qantas thinks that the way forward is an LCC for marginal routes in a country whose economy is utterly stagnant.....

Clearly the Jetstar lunatics have taken over the Qantas asylum!

Jetstar really is the spoilt child, whose expenses are absorbed by Daddy. But Qantas actually needs a plan, because its international full-service carrier only really caters for Sydney residents, when Melbourne and southeast Queenslamd have far stronger economies and outbound markets which are 85% and 50% the size of Sydney's respectively.

The answer is not to grow Jetstar. Especially in a moribund market like Japan. The answer is to fix Qantas.


User currently offlineIndianicWorld From Australia, joined Jun 2001, 2966 posts, RR: 0
Reply 12, posted (3 years 2 months 3 days 21 hours ago) and read 1366 times:

^^ I don't think this is the major plank in their International review.

It may take pressure off the need to place the ordered JQ aircraft into the Australian market. Given TTs issues though, more room might open up for those to be placed into domestic use though which would have struggled otherwise.


User currently offlineTruemanQLD From Australia, joined Feb 2007, 1533 posts, RR: 0
Reply 13, posted (3 years 2 months 3 days 20 hours ago) and read 1323 times:

Quoting koruman (Reply 11):
Jetstar really is the spoilt child, whose expenses are absorbed by Daddy

You continue to say this, but with no evidence! Alan Joyce has said Jetstar is making them a profit and I know he is 'the devil' but why would they continue to grow Jetstar if it wasnt making money? They arent stupid!

Quoting koruman (Reply 11):
The answer is not to grow Jetstar. Especially in a moribund market like Japan.

Japan has a population of over 120 million and LCC havent 'boomed' there as they have in most of the first world. It is a huge opportunity for them, however I agree it wont be the new 'strategy' they are announcing.


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