DFWEagle From United States of America, joined Dec 2006, 1064 posts, RR: 9 Posted (1 year 10 months 4 weeks 1 day 10 hours ago) and read 2356 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:
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.
aznmadsci From United States of America, joined Dec 2007, 3542 posts, RR: 5 Reply 1, posted (1 year 10 months 4 weeks 1 day 8 hours ago) and read 2201 times:
Would they be based out of NRT, KIX, or NGO?
The journey of life is not based on the accomplishments, but the experience.
LDVAviation From United States of America, joined Dec 2008, 757 posts, RR: 5 Reply 2, posted (1 year 10 months 4 weeks 1 day 7 hours ago) and read 2080 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?
Tomassjc From United States of America, joined Jan 2010, 659 posts, RR: 1 Reply 3, posted (1 year 10 months 4 weeks 1 day 7 hours ago) and read 2066 times:
DFWEagle From United States of America, joined Dec 2006, 1064 posts, RR: 9 Reply 4, posted (1 year 10 months 4 weeks 1 day 6 hours ago) and read 2026 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.
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.
allrite From Australia, joined Aug 2007, 1409 posts, RR: 3 Reply 5, posted (1 year 10 months 4 weeks 1 day 4 hours ago) and read 1850 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.
truemanQLD From Australia, joined Feb 2007, 1336 posts, RR: 0 Reply 6, posted (1 year 10 months 4 weeks 1 day 3 hours ago) and read 1799 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
allrite From Australia, joined Aug 2007, 1409 posts, RR: 3 Reply 7, posted (1 year 10 months 4 weeks 1 day 2 hours ago) and read 1695 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.
truemanQLD From Australia, joined Feb 2007, 1336 posts, RR: 0 Reply 8, posted (1 year 10 months 4 weeks 19 hours ago) and read 1418 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.
DFWEagle From United States of America, joined Dec 2006, 1064 posts, RR: 9 Reply 9, posted (1 year 10 months 4 weeks 18 hours ago) and read 1320 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.
aznmadsci From United States of America, joined Dec 2007, 3542 posts, RR: 5 Reply 10, posted (1 year 10 months 4 weeks 14 hours ago) and read 1201 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.
koruman From Australia, joined Feb 2006, 2983 posts, RR: 6 Reply 11, posted (1 year 10 months 4 weeks 1 hour ago) and read 1028 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.
IndianicWorld From Australia, joined Jun 2001, 2403 posts, RR: 0 Reply 12, posted (1 year 10 months 3 weeks 6 days 21 hours ago) and read 951 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.
TruemanQLD From Australia, joined Feb 2007, 1336 posts, RR: 0 Reply 13, posted (1 year 10 months 3 weeks 6 days 20 hours ago) and read 908 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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