Two Asian Airlines to Form Low-Cost Carrier in Japan

Japan Airlines

The Japanese airline A.N.A. and AirAsia, a fast-growing carrier based in Malaysia, said Thursday that they would team up to form a low-cost carrier that would link Japan with destinations in northeast Asia starting in August of next year.

The venture is the latest example of how Asian airlines are racing to beef up their business in a bid to position themselves for an expected surge in demand for flight services in the region.

The new AirAsia Japan will be based at Narita International Airport, near Tokyo. Majority-owned by All Nippon Airways, as A.N.A. is formally known, it will serve destinations within Japan and in South Korea, Taiwan and China.

A.N.A. is separately investing in another low-cost carrier, Peach, which will operate out of Kansai International Airport near Osaka and take to the skies by March 2012.

Singapore Airlines, another long-established Asian heavyweight, announced plans in May for a no-frills carrier that will fly medium- and long-haul routes.

And AirAsia, which is focused on Southeast Asia, announced an order last month for 200 new aircraft, one of the biggest such orders ever.

Taken together, these developments highlight the rapid growth of air traffic services both to and from Asia, and within the sprawling region itself.

A growing number of low-cost carriers have increased demand by providing affordable travel in recent years, while rising levels of affluence are expected to increase demand by Asian travelers still further.

In Japan, which remains a relatively high-cost market, A.N.A. and AirAsia are hoping to emulate the success that budget carriers have had elsewhere in the region. The rationale of their venture, AirAsia said in a statement, was to “bring low cost airline travel to Japan to make it affordable to the average Japanese national to travel both domestically and regionally.”

source: http://www.nytimes.com