News
Japan Airlines group launching long-haul LCC
May 18th 2018
Japan Airlines (JAL) Group will establish a medium to long-haul low-cost carrier (LCC) ahead of the Tokyo Summer Olympics in 2020 and completion of Narita Airport’s expansion. Read More » The announcement comes after rival ANA HOLDINGS INC. said it would launch a medium-haul LCC under the Peach Aviation brand, also in 2020.
Initially, the JAL long-haul LCC will fly two B787-8s to Asia, Europe and the U.S. with the intention of complementing the domestic and regional networks of its joint venture, Jetstar Japan.
To avoid cannibalization, JAL said the yet to be named long-haul LCC would not operate to destinations served by mainline JAL.
“When JAL establishes the new LCC business, the company aims to create new demand, working with the successful services of Jetstar Japan, which features domestic and short-haul international flights,” the airline group said.
JAL has a 47.1% economic interest and 33.3% voting stake in the Jetstar Japan venture. Qantas Airways holds equal shares and voting rights. Century Tokyo Corp. and Mitsubishi Corp. account for the remaining equity. JAL said it would accept “new investors” in the long-haul LCC. It will announce its financial structure and shareholders in July.
In the financial year ended March 31, JAL’s operating profit increased 2.5%, to 174.5 billion yen. But its net profit was down 17.5% year-on-year, to 135.4 billion yen, mainly from deferred income taxes from the previous fiscal year.
