Japan Airlines (JAL) has announced it will establish a new low-cost carrier (LCC) for the international market!
The new LCC business will specifically feature international routes with medium to long-haul flights and will aim to provide customers with new options when travelling to/from Japan.
JAL said in a release the new company would operate flights out of Narita International Airport to select destinations in Asia, Europe, and the Americas.
In the first stages of its establishment, the carrier will operate two Boeing 787-8 aircraft and is targeting to launch commercial flights from the summer of 2020 when Narita Airport plans to complete enhancements to its facilities.
The airline will invest 10 billion – 20 billion yen (over $120 million – 241 million AUD) in the business, aiming to reach profitability within three years after launch, as per Reuters.
According to Forbes, high operating costs and an efficient high-speed rail network have made it difficult for LCC’s to penetrate the Japanese market, taking up only 10 per cent of domestic traffic within Japan.
The release from JAL said the company has remained committed to refining its own full-service carrier model while making key investments into Jetstar Japan.
When the airline establishes the new LCC business, the company aims to create new demand, working along with the successful services provided by Jetstar Japan, which features domestic and short-haul international flights.
“Through these actions, the company will take on the challenge to deliver and meet the needs of diversified customer groups around the world,” the company said.