Japan Airlines Starts Narita-Based Low Cost Carrier Strategy in Earnest
Updated: Jul 9, 2021
Japan Airlines is building out their low-cost carrier strategy at Tokyo-Narita focusing on the tourism and visiting friends and relatives (VFR) markets. The carrier will make additional investments in Spring Japan and Jetstar Japan, while leveraging ZIPAIR's strengths.
On Wednesday (June 30, 2021), Japan Airlines announced that they have started their Narita-based LCC strategy in earnest. As part of one of the pillars of JAL’s medium-term management plan, they will strengthen their LCC business with a focus on the tourism and VFR markets. Japan Airlines will make additional investments in Spring Japan and Jetstar Japan, and along with ZIPAIR, will build a Tokyo-Narita LCC network to respond the post-pandemic changes in the market. The investment in the two low-cost carriers will be made with a portion of the funds raised through a November 2020 public offering.
Recently, Spring Japan became a consolidated subsidiary of the JAL Group and the carrier is well positioned to respond to increasing inbound passenger demand from China by leveraging their high brand power and sales capabilities in China. JAL plans on expanding their network between Narita and points in China where there are currently no direct flights. Jetstar Japan will also continue to work with the Qantas Group to expand the LCC market in Japan. The company plans on leveraging a dual brand strategy that combines the strength of the Jetstar LCC brand and JAL’s full-service brand to recover their financial position in the post-pandemic environment.
Narita-based ZIPAIR is also a JAL Group LCC and will resume service to Honolulu on Wednesday, July 21, 2021. Additionally, ZIPAIR will expand their medium and long-haul network including service to the U.S. West Coast and Asia. The goal is for ZIPAIR to attract new customers that JAL, the conventional full-service airline, has been unable to reach. The JAL Group will continue to build a global network that leverages the strengths of the three Tokyo-Narita based LCC’s, while maintaining the company’s unwavering commitment to safety, security and service.
Source: Japan Airlines