Japan Airlines plans to introduce new low cost airline to boost tourism

Published on : Wednesday, May 16, 2018

Japan AirlinesJapan Airlines, the premier airline company has announced its plan to launch a low-cost airline to increase the travel and tourism.



This low cost airline will fly medium- and long-haul flights in an attempt to tap into Asia’s growing budget aviation market.



According to the announcement, the new carrier will be based out of JAL’s hub at Tokyo Narita International Airport (NRT).



It will start with flights to international destinations in Asia, Europe and even the Americas using two Boeing 787-8 Dreamliners.



Japan Airlines plans to invest 10-20 billion yen ($91.2-$182.4 million) in the venture with the aim of turning a profit within three years.



The move comes at an interesting time for JAL, which has held steady with its own full-service airline model even while staking a minority investment in low-cost carrier Jetstar Japan.



The new airline is meant to complement Jetstar Japan’s domestic flight network with a more international reach.



Due to high operating costs, the preferences of Japanese travellers and Japan’s efficient and affordable high-speed rail network, low-cost carriers have had a hard time penetrating Japan’s domestic aviation market.




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