Jetstar Japan to say Konichiwa in 2012

[JuliusWong 0]

Japan Airlines will enter the low-cost carrier market through a joint venture with Australia's Jetstar group, and launch domestic flights next year, Nikkei reported.

 

The venture will be capitalised at JPY¥10 billion - JPY¥20 billion (USD$123.8 million - USD$247.7 million), with JAL and Jetstar, a Qantas subsidiary, holding 30 percent stakes each, the daily said.

 

A decision on which company will have management control will be taken later, the business newspaper said.

 

Mitsubishi and Toyota have been invited to invest in the deal, which JAL and Jetstar aim to finalise next month, Nikkei reported.

 

The new discount airline -- expected to eventually fly international routes -- may serve Tokyo's Narita airport, which is expanding its landing slots, the business daily said.

 

Link: http://news.airwise.com/story/view/1309482247.html

[Kenneth Chong WT 0]

would be cool it they name it "JET-pan"...most likely Jetstar Japan though...

[BC Tam 2]

would be cool it they name it "JET-pan"...

Not when it rhymes so well with an apparatus commonly utilized in hospital wards and nursing homes

[Kenneth Chong WT 0]

Not when it rhymes so well with an apparatus commonly utilized in hospital wards and nursing homes

 

Hahaha!

[JuliusWong 0]

MEDIA RELEASE

16 August 2011

Melbourne (2 pages + background)

 

Jetstar is expanding its pan Asian operations with a new low fare airline that will stimulate fresh travel demand in Japan.

 

Jetstar Japan will be the newest link in the airline’s rapidly expanding network, which already offers connections to 17 countries including Australia, Singapore, Vietnam and New Zealand.

 

Chief Executive Officer of Jetstar, Bruce Buchanan, said the new venture will link existing Jetstar services to Osaka and Tokyo with other leisure hot-spots across Japan.

 

Fares are expected to be an average of 40 per cent lower than current prices and special sales with even lower prices, which will make regular air travel a reality for millions more people.

 

“Jetstar is about bringing exciting travel options within reach for more people, by offering sustainably low fares.”

 

“Jetstar Japan means people will be able to travel on our network into Japan, and then continue on to the famous ski fields or cultural centres under our much-loved orange star.”

 

Jetstar Japan expects to fly from Tokyo (Narita) and Kansai International, with other destination airports and bases being considered including Sapporo, Fukuoka, and Okinawa.

 

The new airline, a partnership between Qantas Group, JAL and Mitsubishi Corporation, is expected to start flying by the end of 2012, with an initial fleet of three new Airbus A320 aircraft, configured for 180 customers in a single class. This fleet is planned to grow to 24 A320s within a few years. Total capitalization commitment for the new airline is up to ¥12 billion.

 

“As Jetstar expands into new markets across Asia, it gives us economies of scale to strengthen the low cost advantage right across our network,” said Mr Buchanan.

 

Jetstar was the first low cost airline to enter Japan in 2007 with flights from Osaka and Tokyo to Cairns and the Gold Coast. In July 2010 Singapore and Taipei were connected to Osaka. More than 2 million people have since travelled on these routes.

 

Jetstar is the Asia Pacific’s largest airline by revenue as well as its fastest growing, carrying almost 20 million people a year in just its seventh year of operation.

 

ENDS

 

Source: http://www.scoop.co.nz/stories/BU1108/S00524/jetstar-japan-to-say-konichiwa-in-2012.htm

[flee 5]

Media Release: http://www.asx.com.au/asxpdf/20110816/pdf/420dww4rddcy12.pdf

[Mike P 0]

All the AirAsia's inspiration and innovation. Everyone follows suit. JL and JQ definitely don't want the big cakes to be solely shared by AK and NH.

[alberttky 0]

Miyuki Suzuki's appointment as Jetstar Japan CEO marks second female executive for Jetstar Group

 

Jetstar Japan marked several key milestones on its way to launch on 10-Oct-2011, including the appointment of Ms Miyuki Suzuki as CEO, effective 01-Dec-2011. Ms Miyuki, a former CEO of Japanese telecommunications and IT services company KVH Co, will be the second female CEO at a Jetstar Group company, joining Chong Phit Lian who is CEO of Singapore-based Jetstar Asia.

 

Commenting on the appointment, Jetstar CEO Bruce Buchanan noted in an interview with The Australian: "The aviation industry in Japan has been male dominated for a long time. Japanese women are, I think, the most underemployed anywhere in the world. A female CEO is another big signal of how radically we want to change the market up here."

 

Jetstar Japan was required to have a Japanese chief executive, although Mr Buchanan said it was always the intention to appoint a Japanese executive to the position. "When you have a large workforce and a lot of stakeholders, (and for) understanding the local consumer markets, it's critical to have a local CEO to get the best out of the business," he said.

 

In a news conference in Tokyo, Mr Bruce Buchanan said Ms Suzuki's experience of working in start-up industries and in sectors going through deregulation will be a key asset in heading the company.

 

As previously analysed in detail in a CAPA – Centre for Aviation Airline Leader report from Aug-2011, the airline industry is notorious for its “boysy” silhouette, with a scarcity of female CEOs of commercially significant airlines across the world. In a review of the profiles of over 200 airlines around the world, it was revealed that half of the world's women airline CEOs/MDs head low-cost carriers, including easyJet, SkyExpress, Spring Airlines, Thomson Airways and Jetstar Asia. Beijing Capital Airlines, in China, also has a female CEO in Zhu Kai.

Jetstar Japan receives first round of funding

 

The CEO announcement for Jetstar Japan comes after the Jetstar Japan Board met for the first time in Tokyo on 07-Oct-2011 to discuss progress towards the start of domestic services in Japan by the end of 2012. Among other milestones noted by the airline’s board were the formal incorporation of Jetstar Japan and receipt of the first round of funding from project partners Japan Airlines, Mitsubishi Corporation and the Qantas (Jetstar) Group. Following the meeting, Mr Buchanan commented: "The business is well on track: we have completed the first round of funding, we have had our first board meeting and we have appointed a CEO".

 

The JV will initially be capitalised at around JPY3 billion (USD39 million), increasing to JPY12 billion (USD156 million) after the commencement of operations, but excludes the cost of aircraft. The three investment partners will each hold a third of the company in terms of voting rights, although Qantas and Japan Airlines will each contribute 42% of the total investment, with Mitsubishi contributing a smaller 16%. As per Japan regulations, foreign interests may not hold more than one third of a Japanese airline.

 

Jetstar Group CEO Bruce Buchanan also stated that negotiations with a range of potential suppliers and business partners, including airports across Japan, were "progressing well". Several airports in Japan, the world's third-largest domestic aviation market after the US and China, are vying to be the company's operation base. The carrier has previously stated it expects to operate from Tokyo Narita and Osaka Kansai International, both served by Jetstar, with other destinations under consideration including Sapporo, Fukuoka and Okinawa. Jetstar Japan also plans to ultimately offer short-haul international services to key Asian cities, with Qantas CEO Alan Joyce separately stating international services will commence within a year of launch.

Qantas orders 100 A320s. Some to be deployed to Jetstar Japan

 

Also this month, Qantas finalised an order with Airbus for 110 A320 family aircraft, to help with the airline’s fleet renewal and expansion plans in the coming years. The firm order for 78 A320neos (scheduled to enter service in 2015) and 32 A320s is the largest single order in Australian aviation history by aircraft units and follows a commitment signed in Aug-2011. The new aircraft will be deployed across the Qantas Group, some of which will be deployed to Jetstar Japan, while others will be utilised on short- to medium-haul domestic and international operations. Qantas will make its engine decision at a later date.

 

Jetstar Japan plans to launch with an initial fleet of three new A320 aircraft, configured with 180 seats in a single class, growing to 24 aircraft within its first few years. Japan Airlines (JAL) noted it is "irrelevant" that it is not an operator of Airbus aircraft, with the fleet development based solely on Jetstar's fleet profile.

 

Although Mitsubishi has a majority stake in the Mitsubishi Aircraft Corporation, which is developing a 70-90 seat regional aircraft, Jetstar Group CEO Bruce Buchanan has said Jetstar Japan will not be swayed by parent company interests, instead continuing to concentrate on operating 180-plus seat aircraft. "There is no consideration to include the regional jets," Mr Buchanan said. "Our business is very focused on A320s and above. We have no intention of operating regional jets."

 

A bit of background

 

Japan Airlines Corp, Jetstar Airways and Mitsubishi Corp in Aug-2011 confirmed plans to establish a LCC JV in the Japan market by Dec-2012. Jetstar Japan will be Japan's third new LCC announced this year, following hard off the heels of All Nippon Airways' announcement in Jul-2011 that it plans to establish a JV with leading low-cost airline AirAsia, AirAsia Japan, in addition to its previously announced LCC, Peach. The JAL JV would add another piece to the complex jigsaw that is now transforming the Asian airline market. The potential market growth as these successive ventures are introduced can be measured in the hundreds of millions of new passengers. Removal of highly restrictive regulatory conditions and the scale of opportunities as new city pair market options emerge literally mean the sky is the limit for growth upsides.

 

Jetstar, with the announcement, is completing another piece of the Asia Pacific low-cost airline subsidiary puzzle, further growing its brand in Asia and gaining an increasing number of economies of scale in its operations. For JAL, the venture enables it to capitalise on recent developments in the Japan market, allowing for the diversification of its business model at a time of restructure for the carrier.

 

Japan Airlines president Masaru Onishi has subsequently stated he believes Jetstar Japan will be able to learn from and avoid mistakes made by other well-established US and European carriers in developing subsidiary LCCs. He added the Japanese Government needs to make further progress to enhance the global competitiveness of its airports, as part of which it needs to implement reforms to regulations on landing fees and slots. Mr Onishi said JAL has sought advice from members of the oneworld alliance in its planned move into the LCC sector.

 

http://www.centreforaviation.com/blog/miyuki-suzukis-appointment-as-jetstar-japan-ceo-marks-second-female-ceo-for-jetstar-group-60383

[flee 5]

Jetstar In Rush To Beat AirAsia For Japan Service

 

MELBOURNE, Feb 8 (Bernama) -- Qantas budget carrier Jetstar, has brought forward the launch of its Japanese subsidiary by several months.

 

This is to beat Malaysia's AirAsia, in setting up domestic services in that country, the Sydney Morning Herald said.

 

The newspaper also said Jetstar Japan had originally intended to begin flights on domestic routes late this year, but today, inked in July 3 as the launch date.

 

The airline also confirmed that the joint venture between the Qantas Group, Japan Airlines and Mitsubishi will begin with a network linking Tokyo, Osaka, Sapporo, Fukuoka and Okinawa. The Japanese budget airline will begin with a fleet of just three new A320 aircraft - each seating 180 passengers - before increasing it to 24 within several years, the newspaper said.

 

Jetstar and AirAsia are engaged in a contest to set up subsidiary airlines around Asia. AirAsia gained regulatory clearance this week for its offshoot in the Philippines to launch flights from March.

 

AirAsia has slated August for the launch of its Japanese budget airline, which is a joint venture with All Nippon Airways. Jetstar Japan's chief executive, Miyuki Suzuki, said in a statement that the airline expected "strong customer demand" when fares to its first five destinations go on sale.

 

"In a country that's never had a true low fares domestic network, the ability to travel for an average of 50 per cent less will open up new places and opportunities," she added.

 

Jetstar Japan has still to gain an air operator's certificate.

 

The expansion into Japan follows Jetstar setting up joint venture operations in Vietnam, New Zealand and Singapore.

 

Singapore was made Jetstar's Asian hub in early 2010.

[Naim 6]

What a competitive market Japan is gonna be!

 

---

 

Wednesday, July 4, 2012

 

Budget carrier Jetstar takes off

Kyodo, Bloomberg

 

The first flight of Jetstar Japan Co., a budget airline funded by Japan Airlines Co., took off Tuesday from Narita International Airport bound for New Chitose Airport near Sapporo.

 

With the launch, Jetstar became the second discount airline to serve domestic routes in Japan, following the Osaka Prefecture-based Peach Aviation Ltd., a budget carrier owned partly by All Nippon Airways Co. The move appears to set the stage for a full-fledged price war between discount carriers across Japan.

 

Starting with the launch of Narita-New Chitose and Narita-Fukuoka routes on Tuesday, Jetstar next week will fly between Narita and Kansai International Airport in Osaka and between Narita and Naha Airport in Okinawa Prefecture. On Aug. 24, it will start services connecting Kansai International with New Chitose and with Fukuoka.

 

Jetstar Japan has said it may grow its fleet to 100 planes by the end of the decade as it lures travelers with fares less than half those charged by JAL and All Nippon Airways Co., the nation's two biggest airlines. Besides Peach Aviation, AirAsia Japan Co. is starting budget flights in Japan this year following the addition of new capacity at Narita.

 

Peach, which began services in March, estimates up to 40 percent of its customers are first-time fliers, President Shinichi Inoue said last month. The airline and AirAsia Japan are both part-owned by ANA. AirAsia Japan is also backed by AirAsia Bhd., the region's biggest low-cost carrier.

 

Jetstar Japan expects budget airlines to roughly triple their share of Japanese air travel to 35 percent by 2020.

 

Skymark Airlines Inc., Japan's biggest discounter, is also boosting services.

 

Jetstar Japan is offering one-way tickets to Sapporo from Narita for ¥4,490 on its website. JAL is advertising tickets from ¥12,300 flying from Tokyo's Haneda airport in August and September, according to its website.

 

http://www.japantimes.co.jp/text/nb20120704n2.html#.T_Pgs4Qt234

[flee 5]

Jetstar Japan became on 03-Jul-2012 the second low-cost carrier to launch domestic services in Japan this year, ushering in a new era not only for Japan but wider North Asia, where progressive policies and support for LCCs have been few.

 

Coupled with a flurry of recent open skies agreements, Japan’s influence on North Asia will grow as Jetstar Japan targets the launch of international flights from 1H2013 to countries including China, the Philippines, South Korea and Taiwan.

 

Jetstar Japan will be the last of the new LCCs to launch international services, with Peach having commenced international services in May-2012, two months after its domestic launch, and All Nippon Airways JV AirAsia Japan planning international flights from Oct-2012, two months after its Aug-2012 domestic launch. As the carriers, and Jetstar Japan in particular, grow internationally, the region will change at a greater rate than some incumbent airlines and countries have the bandwidth to support.

 

Full Article: http://www.centreforaviation.com/analysis/jetstar-japan-launches-domestic-routes-and-to-target-international-markets-from-1h2013-77204