Amakusa Airlines' ATR42-600 arrives in Japan.

On August 21st, Amakusa Airlines' [AHX] brand-new ATR42-600 registered JA01AM arrived at Kumamoto [KMJ/RJFT] on delivery (Amakusa Airlines chooses ATR42-600.). The Amakusa [AXJ/RJDA]-based commuter airline will replace its sole 39-seat Bombardier DHC-8-103 JA81MX Mizoka with the new 48-seat aircraft, which becomes the first of the type to be operated in Japan. It had been delivered to Nordic Aviation Capital on lease to Amakusa Airlines on August 13th.

The eight on board the delivery flight pose in front of ATR42-600 JA01AM New Mizoka at Kumamoto upon completing the long journey. (Photo: Amakusa Airlines)

The long delivery flight started from Toulouse/Blagnac [TLS/LFBO] on August 16th, making stops at Paphos [PFO/LCPH], Bahrain [BAH/OBBI], Muscat [MCT/OOMS], Malé [MLE/VRMM], Colombo/Bandaranaike [CMB/VCBI], Bangkok/Don Mueang [DMK/VTBD], and Taipei/Taoyuan [TPE/RCTP], before arriving at Kumamoto on August 21st. As JA01AM approached the Kyushu airport, it performed a low-pass in front of a crowd of enthusiasts who gathered to welcome the new turboprop, before touching down on Runway 25. A total of eight officials including pilots from ATR and Amakusa staff were on board the delivery flight.

ATR42-600 JA01AM New Mizoka at Toulouse prior to delivery. (Photo: Amakusa Airlines)

The tiny single-aircraft airline currently flies Amakusa – Fukuoka [FUK/RJFF] three times daily and Amakusa – Kumamoto – Osaka/Itami [ITM/RJOO] daily, though the latter was suspended on August 23rd to allow its pilots to start transitioning to the ATR42. Crew training is expected to start by the end of August, and the brand-new aircraft is planned to enter service sometime in January 2016. The sole DHC-8 will be retired then, retaining a single-aircraft fleet.

Amakusa Airlines is owned 53.31% by Kumamoto Prefecture, 22.92% by the City of Amakusa, 2.73% by the City of Kamiamakusa, 1.2% by Reihoku Town, among others. The small niche airline code-shares with Japan Airlines [JL/JAL] on all flights (Amakusa Airlines announces code-share with JAL.) and outsources ground handling to its partner at all of its destinations except for Amakusa, its home base. JAL affiliate Japan Air Commuter [3X/JAC] will become the second ATR42 operator in Japan in 2017 when it starts to take delivery of eight ordered to replace its Saab SF340Bs (Japan Air Commuter orders up to 23 ATR42-600s.).

Source: Amakusa Airlines @ Facebook.
Source: Aviation Wire, 2015 August 21st. (in Japanese)

AirAsia Japan confirms Spring 2016 launch from Nagoya.

On July 21st, AirAsia Japan (Mk II) officially applied for an Air Operator's Certificate (AOC) with the Japan Civil Aviation Bureau (JCAB). Although a change in business strategy along with rigorous document preparations have resulted in an eight-month delay (AirAsia admits Skymark bid defeat, Japan unit delay to 2016.), the regulator is expected to grant permission as early as October. The reincarnation of AirAsia's Japanese unit will launch operations in March or April 2016 with both domestic and international routes from Nagoya/Chubu Centrair [NGO/RJGG] using 180-seat Airbus A320s (AirAsia Japan selects Nagoya Chubu Centrair.).

Seen departing Fukuoka in October 2013, AirAsia Japan's (Mk I) Airbus A320-214 JA02AJ has since been transferred to Indonesia AirAsia as PK-AZI. The first aircraft for AirAsia Japan (Mk II), A320-216(SL) JA01DJ (MSN 6702), has already completed its maiden flight from Toulouse. (Photo: Ryosuke Yano)

Its initial routes are expected to be Fukuoka [FUK/RJFF], Sapporo/New Chitose [CTS/RJCC], and Seoul/Incheon [ICN/RKSI], all former routes of the defunct first AirAsia Japan (Mk I) [JW/WAJ] (CoachFlyer JW8541: NRT - FUK on AirAsia Japan's Airbus A320.). Sendai [SDJ/RJSS] (New AirAsia Japan mulls Nagoya – Sendai.) and Taipei/Taoyuan [TPE/RCTP] will be added shortly after. Japan's latest LCC will establish regional international routes before adding more domestic destinations. Routes will officially be revealed in November, followed shortly by ticket sales start. Sister AirAsia X [D7/XAX], which suspended Kuala Lumpur/Sepang [KUL/WMKK] – Chubu Centrair in February, will also reinstate the link and help feed the Japanese unit.

AirAsia Japan (Mk II) will start with a pair of A320s supplied from the huge AirAsia Group order pool, and plans to build its fleet to six by the end of 2016. Five aircraft will be added each year onwards; 11 aircraft by the end of 2017 and 16 by the end of 2018. If demand warrants, they have the option to add two additional A320s by the end of 2018. All of the planned machines are too much for just the Nagoya market, and AirAsia Japan (Mk II) will continue to push for daytime slots at heavily-regulated Tokyo/Haneda [HND/RJTT]. Their first attempt failed when AirAsia's [AK/AXM] bid for bankrupt Skymark Airlines [BC/SKY] was rejected (ANA and AirAsia bid to save Skymark.). The government is willing to expand Haneda's slots as soon as it reaches accords with business districts and densely-populated areas where aircraft will overfly, hopefully in time for the 2020 Tokyo Olympics/Paralympics.

Nagoya is the third largest metropolitan area in Japan, however, its proximity to the Kansai (Greater Osaka) region and Osaka/Kansai [KIX/RJBB] has left Chubu Centrair underutilized. Along with Kansai, Chubu Centrair is also a 24-hour airport but with ample slots available, and AirAsia Japan (Mk II) is initially staying away from hotly-contested Kansai, which sees Peach Aviation [MM/APJ] and Jetstar Japan [GK/JJP] (Jetstar Japan launches Kansai hub.) established along with a plethora of foreign LCCs competing. However, overlaps will come in due course as all LCCs continue to expand, and some rivalry is inevitable as Jetstar Japan already operates from Chubu Centrair to Fukuoka, Kagoshima [KOJ/RJFK], Kumamoto [KMJ/RJFT], Okinawa/Naha [OKA/ROAH], and New Chitose (Jetstar Japan commences Nagoya – Okinawa.).

Leading AirAsia Japan (Mk II) is CEO Yoshinori Odagiri, who also headed the first version of the Japanese unit. Although originally an ANA veteran, he has since departed Japan's largest carrier to pursue "unfinished business" under the AirAsia brand. (Photo: Aviation Wire)

AirAsia Group CEO Tan Sri Tony Fernandes had said that AirAsia Japan (Mk II) would likely become the biggest contributor to the budget airline group within the next few years as it formed a cornerstone for the network's global aspirations. "With Japan, we don't only need to limit ourselves to Asia. Flights to Vancouver in Canada and Hawaii and the U.S. west coast are now possible. This means we're well on our way towards becoming a global airline," adding "Japan and India are key for us as they can be launching pads for expansion beyond Asia." Keeping up to Mr. Fernandes' ambitions, AirAsia X [D7/XAX] has applied to extend its Kuala Lumpur – Kansai link to Honolulu [HNL/PHNL] for launch as early as November. It would be a litmus test before launching direct flights to the U.S. west coast.

AirAsia Japan (Mk I) was a joint-venture with All Nippon Airways' [NH/ANA] parent ANA Holdings, which was terminated in June 2013 over differences in decision-making. It was subsequently re-branded Vanilla Air [JW/VNL] under full ANA control (Vanilla Air launches operations.). AirAsia's Japanese unit was officially reborn last July under the leadership of CEO Yoshinori Odagiri, who also headed the first incarnation, and CFO Osamu Hata, who previously worked with Dell Japan (AirAsia Japan is officially reborn; first flight June 2015.). Shareholding-wise, Malaysia's AirAsia controls 49%, Octave Japan Infrastructure Fund 19%, Rakuten 18%, Noevir Holdings 9%, and Alpen 5%, though voting-rights-based, AirAsia will hold 33%, the maximum allowed under Japan's current foreign ownership laws, while Octave will have 28.2%, Rakuten 18%, Noevir 13.4%, and Alpen 7.4%.
 
Source: Rakyat Post, 2014 July 16th. (in English)
Source: Toyo Keizai, 2015 July 21st. (in Japanese)
Source: Aviation Wire, 2015 July 21st. (in Japanese) 
Source: Nikkei Shimbun, 2015 July 21st. (in Japanese)

Peach starts Narita to Fukuoka and Sapporo.

On March 29th, Peach Aviation [MM/APJ] strengthened its network from Tokyo/Narita [NRT/RJAA], inaugurating Fukuoka [FUK/RJFF] and Sapporo/New Chitose [CTS/RJCC] with two round-trips and one, respectively, using 180-seat Airbus A320s. Kanto (Greater Tokyo) region's primary international gateway has been designated its third hub (Peach confirms Narita hub; adds Fukuoka and Sapporo.) after Osaka/Kansai [KIX/RJBB] and Okinawa/Naha [OKA/ROAH] (Peach launches Naha hub; but Naha – Ishigaki axed.). 

An Airbus A320 of Peach arrives at Narita. (Photo: Aviation Wire)

The first flight to Fukuoka as MM523 departed Narita at 0908 JST, eight minutes behind schedule, carrying 166 passengers, and arrived at the Kyushu airport at 1125, 20 minutes later than the published time. A320-214 JA810P was assigned. Meanwhile, the first inbound flight from Sapporo as MM582 departed New Chitose at 0941, six minutes late, with a load of 167 passengers, and arrived at Narita at 1112, two minutes behind schedule. A320-214 JA814P operated the flight. 

Flight Schedule:
Narita – Fukuoka NEW 2 daily with A320-200. (Mar/29 - Oct/24)
MM523 NRT 0900 – 1105 FUK 320 Daily
MM525 NRT 1330 – 1535 FUK 320 Daily
MM524 FUK 1220 – 1410 NRT 320 Daily
MM526 FUK 1610 – 1800 NRT 320 Daily

Narita – New Chitose NEW 1 daily with A320-200. (Mar/29 - Oct/24)
MM585 NRT 1455 – 1640 CTS 320 Daily
MM582 CTS 0935 – 1110 NRT 320 Daily

"Peach changes people's lifestyles. Peach brings positive changes to the cities we fly to. You can expect a lot from us," enthused CEO Shinichi Inoue. Fukuoka and Sapporo became the second and third cities served from Narita by the growing LCC, after it launched a link from its base at Kansai on October 27th, 2013. Peach now flies Kansai – Narita three times daily. One-way fares from Narita to Fukuoka will range from 4,790 JPY to 23,590 JPY, while the flight to New Chitose will start from 3,990 JPY and go up to 23,190 JPY.

Peach is engaging itself in a new round of battle against Narita-headquartered rival Jetstar Japan [GK/JJP], which opened their second hub at Kansai, Peach's home base, in June 2014 (Jetstar Japan launches Kansai hub.). Sister LCC Vanilla Air [JW/VNL], a wholly-owned subsidiary of ANA Holdings, which also controls 38.67% of Peach, is also based at Narita. The Chiba airport thus becomes the first airport to become a hub for all four Japanese LCCs, though Peach has opted against moving into Narita's new LCC Terminal, dubbed Terminal 3, which is slated to open on April 8th.

The Narita – New Chitose route became the first to see three LCCs competing along with majors All Nippon Airways [NH/ANA] and Japan Airlines [JL/JAL], though the majors mostly cater to passengers connecting with international flights. For Summer 2015, Vanilla Air will fly up to eight round-trips and Jetstar Japan up to seven, with ANA and JAL with two and one, respectively. Narita – Fukuoka is served by Jetstar Japan up to seven times daily, ANA double-daily, and JAL with a single round-trip. Vanilla Air does not fly to the Kyushu airport, though predecessor AirAsia Japan (Mk I) [JW/WAJ] used to (CoachFlyer JW8541: NRT - FUK on AirAsia Japan's Airbus A320.).

Peach currently flies 14 aircraft on 12 domestic and seven international routes covering 15 destinations. It continues to develop its Naha hub adding Hong Kong [HKG/VHHH] on February 21st (Peach commences Okinawa – Hong Kong.), to be followed by Seoul/Incheon [ICN/RKSI] on September 4th (Peach announces Okinawa – Seoul.). Several more Asian destinations are in the cards, including Bangkok (Peach mulls Okinawa – Bangkok.) and Macau (Peach reveals Macau in the works.). Meanwhile, they have also announced intentions to make Sendai [SDJ/RJSS] its fourth hub by 2017 (Peach plans Sendai hub by Summer 2017.).

Source: Aviation Wire, March 29th. (in Japanese)

Skymark downsizes Ibaraki from September.

On March 4th, Skymark Airlines [BC/SKY] announced they would downsize their Ibaraki [IBR/RJAH] focus city, along with the closure of Yonago [YGJ/RJOH] (Skymark decides to close Yonago, keep Ibaraki.), effective September 1st. Frequency to both Fukuoka [FUK/RJFF] and Sapporo/New Chitose [CTS/RJCC] would be reduced to just one daily each, while the through-fare to Okinawa/Naha [OKA/ROAH] via Kobe [UKB/RJBE] would be scrapped.

Boeing 737-8FZ(WL) JA737U lands at Haneda in the late afternoon. Its fleet of 27 Boeing narrow-body jets will be reduced by one aircraft this year. (Photo: Ryosuke Yano)

The bankrupt carrier (Skymark to file for bankruptcy.) will also stop offering a through-fare from Tokyo/Haneda [HND/RJTT] to Nagasaki [NGS/RJFU] via Kobe, necessitating passengers to buy tickets for each leg separately. On the other hand, Nagoya/Chubu Centrair [NGO/RJGG] – New Chitose and Kobe – Naha would see a round-trip added, increasing frequency to three daily, respectively.

Flight Increases/Reductions effective September 1st:
Ibaraki – Fukuoka from 2 to 1 daily.
Ibaraki – New Chitose from 2 to 1 daily.
Kobe – Naha from 2 to 3 daily.
Chubu Centrair – New Chitose from 2 to 3 daily.
Yonago – Kobe to be suspended.
Yonago – Naha to be suspended.

The embattled airline is currently running on financial aid provided by investment fund Integral Corporation, and they together are in the process of choosing an airline sponsor as well as two or three non-airline partners. AirAsia [AK/AXM] and ANA Holdings, parent of All Nippon Airways [NH/ANA], are the only two airline firms that have submitted comprehensive proposals (ANA and AirAsia bid to save Skymark.).

However, Representative Chairman Takashi Ide said "Our balance sheet looks much better after we standardized on Boeing 737s (Skymark Airbus A330 operates last revenue flight.)," adding "Which airline sponsor we select will depend on how much new value the partnership could bring, and not just increased revenue or cost cuts. We are talking with both parties for details." Mr. Ide also hinted it may opt to team up with only financial firms. The figure of Skymark's total liabilities would be calculated after March 18th, which is the deadline for creditors, including aircraft lessors as well as Airbus (Skymark's Airbus A380 order in jeopardy.), to report how much the airline owes them. Skymark would probably only make a decision after that.

Source: Asahi Shimbun, March 3rd. (in Japanese)
Source: Skymark Airlines, March 4th. (in Japanese)
Source: Nikkei Shimbun, March 4th. (in Japanese)
Source: Aviation Wire, March 4th. (in Japanese)

Peach announces Okinawa – Seoul.

On March 5th, Peach Aviation [MM/APJ] announced that they will launch Okinawa/Naha [OKA/ROAH] – Seoul/Incheon [ICN/RKSI] on September 4th, as they gradually expand their second hub located in the Ryukyu islands. The new service will be operated daily using 180-seat Airbus A320-200s. Meanwhile, the Naha – Fukuoka [FUK/RJFF] route will be increased to double-daily on the same day. 

Specially-themed Airbus A320-214 JA804P Violetta RUNE entered service on March 4th. The decals, in collaboration with girls' magazine Violetta and the late artist Rune Naito's RUNE GIRL, will be worn by another two aircraft until the end of 2015. (Photo: Peach)

Fares for the new flights will go on sale on March 9th at 1500 JST. A one-way Happy Peach fare, the basic ticket which only includes a 10-kilogram carry-on baggage allowance, for Naha – Incheon will start from 5,980 JPY, not including taxes and a processing fee. The same basic fare for Naha – Fukuoka will start from 4,290 JPY.

Flight Schedule:
Naha – Fukuoka increase from 1 to 2 daily with A320-200. (Mar/29 - Oct/24)
MM282 OKA 0815 – 0955 FUK 320 Daily *NEW from Sep/4.
MM288 OKA 1750 – 1930 FUK 320 Daily
MM283 FUK 1025 – 1205 OKA 320 Daily *NEW from Sep/4.
MM289 FUK 2015 – 2155 OKA 320 Daily

Naha – Seoul/Incheon NEW daily with A320-200. (Sep/4 - Oct/24)
MM905 OKA 1305 – 1515 ICN 320 Daily
MM906 ICN 1555 – 1805 OKA 320 Daily

Peach already serves Incheon three times daily from Osaka/Kansai [KIX/RJBB]. From their Okinawa hub, the growing LCC currently serves Fukuoka, Hong Kong [HKG/VHHH] (Peach commences Okinawa – Hong Kong.), Kansai, and Taipei/Taoyuan [TPE/RCTP], with Incheon to become its fifth nonstop destination. Launched in July 2014, Naha was selected by Peach with ambitions to use it as a scissors hub (Peach launches Naha hub; but Naha – Ishigaki axed.) to funnel passengers between the main islands of Japan and Southeast Asia. 

"From Naha, we eventually want to fly to Ho Chi Minh City, Hanoi, Bangkok, Kuala Lumpur, and Singapore," CEO Shinichi Inoue said in February. For their first link to Southeast Asia, earlier reports pointed out to a launch as early as this summer, with the destination widely expected to be Thailand. Peach is already discussing with Thai airport authorities about Naha – Bangkok/Don Mueang [DMK/VTBD] (Peach mulls Okinawa – Bangkok.).

Source: Peach Aviation, March 5th. (in Japanese)

Peach confirms Narita hub; adds Fukuoka and Sapporo.

Peach Aviation [MM/APJ] has officially designated Tokyo/Narita [NRT/RJAA] its third hub (Peach plans Narita hub and Haneda – Taipei.) with new routes to Fukuoka [FUK/RJFF] and Sapporo/New Chitose [CTS/RJCC] to be launched on March 29th, the beginning of the Summer 2015 timetable. Already running hubs at Osaka/Kansai [KIX/RJBB] and Okinawa/Naha [OKA/ROAH] (Peach launches Naha hub; but Naha – Ishigaki axed.), the growing LCC will use Narita to serve the huge metropolitan Kanto (Greater Tokyo) market.

Airbus A320-214 JA802P prepares for departure from Fukuoka. Peach currently operates 14 A320s, with their 15th due in March. One each will arrive in July and November, respectively, for a total of 17 by year-end 2015. (Photo: Ryosuke Yano)

The Kansai-headquartered carrier will open up double-daily flights to Kyushu's biggest city and a daily round-trip to the capital of Hokkaido in the north using 180-seat Airbus A320s. Peach already operates a three-times-daily service on Kansai – Narita. In its announcement, the so far most successful Japanese LCC confirmed that additional flights and destinations would be added in due course.

Flight Schedule:
Narita – Fukuoka NEW 2 daily with A320-200. (Mar/29 - Oct/24)
MM523 NRT 0900 – 1105 FUK 320 Daily
MM525 NRT 1330 – 1535 FUK 320 Daily
MM524 FUK 1220 – 1410 NRT 320 Daily
MM526 FUK 1610 – 1800 NRT 320 Daily 

Narita – New Chitose NEW 1 daily with A320-200. (Mar/29 - Oct/24)
MM585 NRT 1455 – 1640 CTS 320 Daily
MM582 CTS 0935 – 1110 NRT 320 Daily

Peach is engaging itself in a new round of battle, or a retaliation, against Narita-based rival Jetstar Japan [GK/JJP], which opened their second hub at Kansai, Peach's home base, in June 2014 (Jetstar Japan launches Kansai hub.). Smaller LCC Vanilla Air [JW/VNL], a wholly-owned subsidiary of ANA Holdings, which also controls 38.67% of Peach, is also based at Narita. The Chiba airport thus becomes Japan's first to become a hub of all four LCCs, though Peach has opted against moving into Narita's new LCC Terminal, dubbed Terminal 3, which is slated to open on April 8th.

Peach's network as of March 29th, 2015. Narita will become their third hub after Kansai and Naha. (Image: Peach)

Meanwhile, the Narita – New Chitose route would be the first to see competition from three LCCs along with majors All Nippon Airways [NH/ANA] and Japan Airlines [JL/JAL]; for the Summer 2015 schedule, Vanilla Air will operate up to eight round-trips and Jetstar Japan up to seven, while ANA and JAL will fly two and one, respectively. Narita – Fukuoka is served by Jetstar Japan up to seven times daily, ANA double-daily, and JAL with a single round-trip. Vanilla Air does not fly to the Kyushu airport, though predecessor AirAsia Japan (Mk I) [JW/WAJ] used to (CoachFlyer JW8541: NRT - FUK on AirAsia Japan's Airbus A320.).

In December 2014, CEO Shinichi Inoue revealed that the carrier was considering opening hubs in Sapporo and Tokyo, as well as Bangkok, Ho Chi Minh City, and Seoul. Their second hub at Naha was only opened last July, and Hong Kong is the next route to be launched on February 21st (Peach announces Okinawa – Hong Kong.), making it the fourth spoke from their Ryukyu base. They are also considering launching Tokyo/Haneda [HND/RJTT] – Taipei/Taoyuan [TPE/RCTP] (Peach plans Narita hub and Haneda – Taipei.) as early as July using the downtown airport's under-utilized midnight slots.

It will be interesting to see how Peach will compete (or not so) with Vanilla Air, whose President Tomonori Ishii had previously said that it wants to avoid competing with its Kansai-based sister. However, while Mr. Ishii's airline is wholly-owned by ANA Holdings, Mr. Inoue's is only minority owned, giving Peach more independence and flexibility. Both ANA and Peach have confirmed that firewall protects information from being shared between the two, and many of the employees see each other as rivals.

Source: Peach Aviation, February 10th. (in Japanese) 
Source: Nikkei Shimbun, February 10th. (in Japanese)

Amakusa Airlines announces code-share with JAL.

On February 3rd, Amakusa Airlines [AHX] announced that they would launch code-sharing with Japan Airlines [JL/JAL] on April 1st. Under the scheme, JAL will place its code on the regional community airline's entire network and all flights, which includes three times daily Amakusa [AXJ/RJDA] – Fukuoka [FUK/RJFF] and a daily Amakusa – Kumamoto [KMJ/RJFT] – Osaka/Itami [ITM/RJOO] routing.

Bombardier DHC-8-103 JA81MX, its entire fleet, wears a unique dolphin livery. (Photo: Aviation Wire)

Amakusa Airlines will take delivery of a brand-new ATR42-600 in January 2016 (Amakusa Airlines chooses ATR42-600.) to replace the current sole Bombardier DHC-8-103 JA81MX, which will be coming up for a 300-million JPY C check later in FY2015. The company concluded that that amount plus subsequent maintenance costs of the 14-year-old turboprop would outweigh the expenses of replacing it with a newer model.

However, while the current aircraft seats 39, the successor seats 48, and with the niche carrier having difficulties filling seats on the Dash 8 during off-peak months, it apparently turned to JAL to help with loads. The commuter airline of the Amakusa Islands outsources ground handling to JAL at all airports except for its home base at Amakusa, so the selection is obvious.

Amakusa Airlines is owned 53.31% by Kumamoto Prefecture, 22.92% by the City of Amakusa, 2.73% by the City of Kamiamakusa, 1.2% by Reihoku Town, among others, and operates a single DHC-8.

Source: Amakusa Airlines, February 3rd. (in Japanese)

Skymark to cut 15% of flights, ground all Airbus A330s.

Follow-up from Skymark to file for bankruptcy.

On January 29th, Skymark Airlines [BC/SKY] announced that its filing for bankruptcy protection (Skymark to file for bankruptcy.) with the Tokyo District Court had been accepted. During a press conference held by new President and CEO Masakazu Arimori and Representative Chairman Takashi Ide, it was announced that 15% of flights would be suspended and its entire Airbus A330 fleet grounded effective February 1st. Further network reductions will come into effect from March 29th, the beginning of the Summer 2015 timetable.

Skymark will move back to an all-Boeing 737 operator effective February 1st. The 271-seat all-premium Airbus A330s had only entered service on June 14th, 2014. (Photo: Aviation Wire)

Japan's third largest carrier currently flies 152 daily flights covering 23 nonstop routes, however, that will be reduced to 126 on Wednesdays and 128 on other days effective February 1st. A dozen routes spanning the following cities will be affected: Fukuoka [FUK/RJFF], Ibaraki [IBR/RJAH], Ishigaki [ISG/ROIG], Kobe [UKB/RJBE], Miyako [MMY/ROMY], Nagoya/Chubu Centrair [NGO/RJGG], Okinawa/Naha [OKA/ROAH], Sapporo/New Chitose [CTS/RJCC], Sendai [SDJ/RJSS], and Yonago [YGJ/RJOH].

Flight Reductions effective February 1st:
Fukuoka – Ibaraki from 2 daily to 1 daily. 
Fukuoka – Naha from 4 daily to 2 daily. 
Fukuoka – Sendai from 2 daily to 6 weekly. *Suspension from Mar/29.
Kobe – Naha from 2 daily to 1 daily. 
Kobe – New Chitose from 2 daily to 1 daily. 
Kobe – Yonago from 2 daily to 1 daily.
Chubu Centrair – Naha from 2 daily to 1 daily. 
Chubu Centrair – New Chitose from 2 daily to 1 daily.
Naha – Ishigaki from 3 daily to 2 daily. *Suspension from Mar/29.
Naha – Miyako from 3 daily to 2 daily. *Suspension from Mar/29.
New Chitose – Ibaraki from 2 daily to 1 daily.
New Chitose – Sendai from 3 daily to 2 daily. *Suspension from Mar/29.

From March 29th, in addition to the previously announced suspension of New Chitose – Sendai (Skymark takes ANA & JAL dual tie-up, axes Sendai – Sapporo.), Skymark will also axe Fukuoka – Sendai, plus Ishigaki and Miyako entirely. Further terminations are likely as the airline reorganizes, with Kobe – Kagoshima [KOJ/RJFK], Kobe – Sendai, and Yonago – Naha probably next up; these three along with New Chitose – Sendai recorded load factors in the 30-40% range for December, one of the peak travel months. Yonago, only launched on December 20th, 2013 as a focus city boasting five routes last summer, as well as Sendai are likely to be closed down entirely (Skymark mulls Yonago pull-out and Sendai cuts.).

As for its fleet, the all-premium 271-seat A330-300s (Skymark Airlines inaugurates Airbus A330 service.) they had only introduced in June last year will be grounded effective February 1st. Six have been delivered so far, though the sixth was only recently handed over and was awaiting a ferry flight from France. Five are leased from Intrepid Aviation and one from CIT Aerospace, with four more on order for delivery by September this year, but Skymark will negotiate to return all airframes and cancel the remaining on order. As it dumped capacity on trunk routes, Skymark often had to slash price of the A330s' premium seats to below that of rivals' economy fares; the more Skymark flew the A330, the more they hemorrhaged. Pilots certified for the A330 will be retrained for the Boeing 737.

Total debt stood at 71 billion JPY, not including the 700 million USD in penalties Airbus is seeking for the cancellation of the Airbus A380 order (Skymark hopes to settle Airbus A380 penalty in October.). As it also needs to cancel A330 contracts, the figure is only estimated to grow in the following months.

Investment fund Integral Corporation will provide finance and help Skymark continue flying while it reorganizes, and Mr. Arimori added "No specific airline has shown interest yet, but we will continue to look for sponsors according to law." Prospect for foreign investment is not zero, but ownership change exceeding 20% will necessitate relinquishing Skymark's 36 prized slot-pairs at Tokyo/Haneda [HND/RJTT], which decreases the appetite of airlines abroad (Skymark's fate: MLIT discourages foreign investment.). Domestically, ANA Holdings, parent of All Nippon Airways [NH/ANA], is the only airline in a position to assist, as the controversial 8.10 Paper prohibits Japan Airlines [JL/JAL] from making any new investments until FY2017.

Skymark also said it will continue discussions with both ANA and JAL to reach a code-share deal (Skymark takes ANA & JAL dual tie-up, axes Sendai – Sapporo.), however, the plan is likely to be reviewed as it was aimed to fill the excess capacity of the A330s. Layoff of staff is not planned, and its approximately 2,200 workforce will be retained at least for now.

The quarterly earnings report, which was due today, has been postponed to February 4th. Shares of Japan's troubled third largest carrier plunged 25% today on January 29th, down by 80 JPY, the maximum possible drop in a day, to 237 JPY per share. The carrier will be de-listed from the Tokyo Stock Exchange effective March 1st, so shareholders have until February 27th to manage their stocks.

But again, the biggest question is how will they restructure? Which market will they go after? Skymark will revert to an all-737 operator flying a network that is a fraction the size of ANA and JAL, without any loyalty program nor premium product. Fares will still be more affordable than ANA and JAL, but will be far from matching those of LCCs based at Tokyo/Narita [NRT/RJAA], its access of which has improved greatly both in terms of time and cost. As has been the case with its post-deregulation peers, will it eventually choose to come under the umbrella of ANA (Running out of time: Will Skymark join ANA?)? Or will it become Japan's first airline to be liquidated?

Source: Skymark Airlines, January 29th. (in Japanese)
Source: Skymark Airlines, January 29th. (in Japanese) 
Source: Nikkei Shimbun, January 29th. (in Japanese)
Source: Aviation Wire, January 29th. (in Japanese)
Source: Skymark Airlines, January 29th. (in Japanese) 

*Edited/updated on February 12th.

Skymark takes ANA & JAL dual tie-up, axes Sendai – Sapporo.

Skymark Airlines [BC/SKY] is preparing to submit a code-share pact with both All Nippon Airways [NH/ANA] and Japan Airlines [JL/JAL] to the Japan Civil Aviation Bureau (JCAB), hopefully in time for March 29th, the beginning of the Summer 2015 timetable. The deadline for applying for domestic routes for this summer was January 21st, but the three carriers put off submitting the dual partnership as "preparations couldn't make it in time," according to both ANA and JAL.

Airbus A330-343E JA330B is pushed back at Haneda. What was a product to better compete with ANA and JAL became part of their cost burden, decreased load factors, and is now calling for its two archrivals to help fill its seats. (Photo: Aviation Wire)

"We need to understand the details of Skymark's policies," said an ANA spokesperson, while its counterpart at JAL also said "We are currently evaluating the proposal to make it in time for March 29th." Under the scheme, ANA would place its code on all five of Skymark's five routes from Tokyo/Haneda [HND/RJTT]; Fukuoka [FUK/RJFF], Kagoshima [KOJ/RJFK], Kobe [UKB/RJBE], Okinawa/Naha [OKA/ROAH], and Sapporo/New Chitose [CTS/RJCC]. JAL will place its code on all but to Kobe, where it no longer has a presence. There's no deadline for code-sharing, however, the more it is delayed, the shorter the time they have to sell the seats.

The code-share pact is vital for Japan's third largest carrier to stay afloat, as selling 20% of its seats on routes from Haneda is expected to generate an annual 8 billion JPY in increased revenue. Skymark is also negotiating with four financial institutions for capital injection through third-party allocation of new shares. The number of shares is expected to be increased by up to 25%, and to receive approval they have called for an extraordinary (emergency) shareholders' meeting, though the February 18th date has been postponed to a later date.

Rumors circulated in early January that Skymark was evaluating an investment from ANA (Running out of time: Will Skymark join ANA?), however, that seems to have been shelved. ANA's reported acquisition of just a few points short of 20% of Skymark's shares on condition that the Airbus A380 cancellation penalty (Skymark hopes to settle Airbus A380 penalty in October.) is settled and most significantly, current senior executives are replaced by those from ANA, was probably unacceptable to the troubled carrier, whose President and CEO Shinichi Nishikubo has reiterated "We take great pride that we have been independent without the help of any major carriers, which has enabled us to change the industry significantly."

Meanwhile, the cash-strapped airline also announced they would be suspending its three-times daily Sendai [SDJ/RJSS] – New Chitose service on March 28th. Its load factor has been hovering around 30-40% in recent months. The route sees competition from AIRDO [HD/ADO] (d.b.a. Air Do), ANA, IBEX Airlines [FW/IBX], and JAL. Its until recently focus city of Yonago [YGJ/RJOH] (Skymark mulls Yonago pull-out and Sendai cuts.) will continue to see nonstop service to Kobe and Naha, however, if load factors do not improve during Summer 2015, they are probably the next in line for the axe.

In other news, Skymark's all-premium 271-seat Airbus A330 (Skymark Airlines inaugurates Airbus A330 service.) will be deployed on the Haneda – Naha route starting on June 1st, when the southern beach resorts become popular in the summer months. It becomes the third A330 route after Fukuoka and New Chitose.

Source: Skymark Airlines, January 21st. (in Japanese) 
Source: Nikkei Shimbun, January 21st. (in Japanese)

Peach plans Narita hub and Haneda – Taipei.

Peach Aviation [MM/APJ] is planning to add Tokyo/Haneda [HND/RJTT] – Taipei/Taoyuan [TPE/RCTP] this summer, becoming the first Japanese LCC to operate into the heavily-regulated downtown Tokyo airport. It will also make Tokyo/Narita [NRT/RJAA] its third hub after Osaka/Kansai [KIX/RJBB] and Okinawa/Naha [OKA/ROAH], and will launch flights from Narita to Fukuoka [FUK/RJFF] and Sapporo/New Chitose [CTS/RJCC] as early as March.

Airbus A320-214 JA810P Wing of Tohoku rests between flights at Kansai. Three aircraft will be added in 2015 for a total of 17, as the carrier grows conservatively yet ambitiously. (Photo: Peach)

Peach would only become the third LCC serving Haneda, after AirAsia X [D7/XAX] and Hong Kong Express Airways [UO/HKE] (d.b.a. HK Express). The new link to Taipei would depart around 0200 or 0300 JST and operate daily with 180-seat Airbus A320s, using the airport's midnight (2300 - 0600) slots, which are underutilized, with only 27 slot-pairs currently used out of 40 total available.

Last November, Japan's Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) introduced a scheme where landing fees would be discounted 50% for the first year, 30% for the second, and 20% for the third for new routes using the midnight slots, in a bid to lure more airlines. Unpopularity of the midnights slots is largely due to public transportation being almost non-existent during those times, with the only choice being taxis. But that is gradually showing signs of improvement, with new midnight buses and extended train schedules.

Meanwhile, Peach has reportedly decided to establish its hub to serve the Kanto (Greater Tokyo) region at Narita. Last month, CEO Shinichi Inoue had revealed that the carrier was considering opening hubs in Sapporo and Tokyo, as well as Bangkok, Ho Chi Minh City, and Seoul. Japan's so far most successful LCC already operates three times daily to Narita from its Kansai base. Their second hub at Naha was only opened last July (Peach launches Naha hub; but Naha – Ishigaki axed.), and Hong Kong is the next route to be launched on February 21st (Peach announces Okinawa – Hong Kong.), becoming the fourth spoke from its southern base.

Peach, however, has decided against moving into Narita's new controversial LCC Terminal, dubbed Terminal 3, which is slated to open on April 8th. It currently uses Terminal 1, which houses All Nippon Airways [NH/ANA], subsidiary of Peach's 38.67% and largest shareholder ANA Holdings. Launching a Narita hub would translate to Peach going head to head with ANA Holdings' wholly-owned subsidiary Vanilla Air [JW/VNL]. Tomonori Ishii, President of the fledgling Narita-based LCC, had previously said that it wants to avoid competing with its Kansai-based sister.

Source: Nikkei Shimbun, January 2nd. (in Japanese)
Source: Traicy,  January 13th. (in Japanese)
Source: Nikkei Shimbun, January 16th. (in Japanese)

JAL to terminate Narita – Okinawa.

Japan Airlines (JL/JAL) has released their Winter 2014/2015 timetable, effective October 26th, 2014 through March 28th, 2015. It includes axing of the once-daily Tokyo/Narita (NRT/RJAA) – Okinawa/Naha (OKA/ROAH) service, which is mostly aimed at connecting passengers for their international flights to and from Narita.

Boeing 777-346 JA8945 moments before touchdown at Okinawa's Naha Airport. (Photo: Ryosuke Yano)

Meanwhile, Japan's second largest carrier will adjust capacity on other routes during the winter months. Tokyo/Haneda (HND/RJTT) to Izumo (IZO/RJOC) and Kumamoto (KMJ/RJFT) will see frequency increases from five to six and eight to nine, respectively, while Fukuoka (FUK/RJFF) to Amami (ASJ/RJKA), Izumo, Matsuyama (MYJ/RJOM), and Miyazaki (KMI/RJFM) will all see one of its flights being cut.

Frequency Increases (DOMESTIC):
Haneda – Izumo from 5 to 6 daily.
Haneda – Kumamoto from 8 to 9 daily.

Frequency Reductions (DOMESTIC):
Fukuoka – Amami from 2 to 1 daily.
Fukuoka – Izumo from 3 to 2 daily.
Fukuoka – Matsuyama from 6 to 5 daily.
Fukuoka – Miyazaki from 10 to 9 daily.

Suspensions (DOMESTIC):
Narita – Naha 1 daily.

Currently, the once-daily Narita – Naha service operates with a 261-seat (42 Class J and 219 economy) Boeing 767-300. Load factors for the route for April - June last year hovered around 40 - 50%, however, it recorded 22.2% (down 20.2% from last year) for April this year, 25.3% (down 24.5% from last year) for May, and 32.3% (down 25.5% from last year) for June. Competition with Narita-based LCCs Jetstar Japan (GK/JJP), in which JAL owns a minority stake, and Vanilla Air (JW/VNL) has significantly increased. JAL's international-connecting passengers will still be able to book the route as a code-share with Jetstar Japan, which operates up to four daily round-trips.

JAL's international plans for Winter 2014/2015, including the anticipated resumption of the Osaka/Kansai (KIX/RJBB) – Los Angeles (LAX/KLAX) route (JAL to resume Kansai – Los Angeles in Winter 2014/2015.), will be announced at a later date.

Reference: Japan Airlines, August 20th. (in Japanese)
Reference: Aviation Wire, August 20th. (in Japanese)

ANA releases Winter 2014/2015 schedule.

On August 20th, All Nippon Airways (NH/ANA) released their Winter 2014/2015 timetable, effective October 26th. The only new route being announced is Tokyo/Haneda (HND/RJTT) – Nagoya/Chubu Centrair (NGO/RJGG) (ANA to resume Haneda – Nagoya in October.), timed to feed their expanded international network at Haneda (ANA's Summer 2014 international expansion.).

Boeing 767-381 JA602A in the Mohican Blue livery used by ANA from May 1969 until March 1989. It was revived as a retro-jet on December 1st, 2009, and completed operations in this special scheme on August 11th, 2014 with NH638, service from Iwakuni to Haneda. It will revert to the current Triton Blue livery. (Photo: Luke H. Ozawa/ANA)

For domestic, other changes include frequency increases from Haneda to Ishigaki (ISG/ROIG), Okayama (OKJ/RJOB), and Okinawa/Naha (OKA/ROAH), and from Fukuoka (FUK/RJFF) to Osaka/Itami (ITM/RJOO) and Naha. Meanwhile, reductions include the Haneda – Yamaguchi-Ube (UBJ/RJDC) route (Star Flyer to add Yamaguchi-Ube; but reduce Fukuoka.), with capacity de facto transferred to partly-owned subsidiary Star Flyer (7G/SFJ) to free up some of ANA's Haneda slots.

New Routes/Resumptions (DOMESTIC):
Haneda – Chubu Centrair NEW 1 daily with 737-800.
NH85 HND 1825 – 1930 NGO 73H Daily *From Oct/26.
NH86 NGO 0750 – 0850 HND 73H Daily *From Oct/26.

Frequency Increases (DOMESTIC): 
Fukuoka – Naha from 8 to 9 daily.
Itami – Fukuoka from 5 to 7 daily.
Haneda – Ishigaki from 1 to 2 daily. *From Feb/1.
Haneda – Okayama from 5 to 6 daily.
Haneda – Naha from 10 to 11 daily.

Frequency Reductions (DOMESTIC):
Itami – Naha from 3 to 2 daily.
Itami – New Chitose from 4 to 3 daily. 
Sendai – New Chitose from 4 to 3 daily.
Haneda – Yamaguchi-Ube from 5 to 3 daily.

For international, there's not much change, with the Tokyo/Narita (NRT/RJAA) – Chengdu (CTU/ZUUU) route seeing a reduction, except for the Chinese New Year period. However, there are equipment swaps between Boeing 767s, 787s, and 777s for regional Asian routes. Popular Taiwan will see all Haneda – Taipei/Songshan (TSA/RCSS) flights operating with the larger 787-8, while Haneda – Manila (MNL/RPLL) will be downsized to 767-300ERs. Haneda – Seoul/Gimpo (GMP/RKSS) will see 14 weekly round-trips being downsized to the 787-8 from the 777-200ER, while Haneda – Shanghai/Pudong (PVG/ZSPD) will see half of its 14 weekly round-trips up-gauged from the 787-8 to the 777-200ER.

Frequency Reductions (INTERNATIONAL):
Narita – Chengdu from 7 to 4 weekly. *7 weekly Feb/13 - 28.

ANA says they will continue to strengthen their Tokyo dual hubs at Haneda and Narita. Japan's largest carrier wants to capture Asia – North America connections at Narita, while Haneda will pursue the Tokyo/domestic – international market.

Reference: All Nippon Airways, August 20th. (in Japanese)

AirAsia Japan selects Nagoya Chubu Centrair.

AirAsia Japan (Mk II) has reportedly made its final decision to make Nagoya/Chubu Centrair (NGO/RJGG) its hub (New AirAsia Japan to be based at Nagoya Chubu Centrair.). On August 15th, CEO Yoshinori Odagiri revealed in an interview that they will set up a maintenance base at the airport serving Japan's third largest metropolitan area. "While there are no vacancies at Haneda and Narita not open 24 hours a day, Centrair is open around the clock," said Mr. Odagiri, adding "Kansai is attractive, but the situation is tough for a latecomer." Initial routes being considered are to Fukuoka (FUK/RJFF) and Sapporo/New Chitose (CTS/RJCC), with Taipei/Taoyuan (TPE/RCTP) expected to be their first international destination. 

On July 1st, AirAsia announced the reincarnation of their Japanese unit (AirAsia Japan is officially reborn; first flight June 2015.), this time with non-airline partners which includes Octave Japan Infrastructure Fund (19%), Rakuten (18%), Noevir Holdings (9%), and Alpen (5%) with an initial capital totaling 7 billion JPY together with AirAsia (49%). Voting-rights-based, AirAsia will control 33%, the maximum possible figure allowed under Japan's current airline foreign ownership laws, while Octave will have 28.2%, Rakuten 18%, Noevir 13.4%, and Alpen 7.4%.

Airbus A320-214 JA01AJ of AirAsia Japan (Mk I) sits at Narita in its final days in Japan. The aircraft is now with the group's Indonesian unit as PK-AZJ. (Photo: Ryosuke Yano)

Work is underway for a June 2015 launch, or "July 20th (2015) at latest," according to Mr. Odagiri, with a fleet of two 180-seat Airbus A320s supplied from AirAsia Group's huge order pool. It will likely start off with two routes from Chubu Centrair, most likely Fukuoka and New Chitose with three round-trips each, later expanding to other domestic and regional international destinations, with Taiwan expected to be the first of the latter. A 'Fly-Thru' product will also be offered including on AirAsia X (D7/XAX), which already serves Chubu Centrair four times weekly from Kuala Lumpur (KUL/WMKK). Two more A320s will be added before the end of 2015, with five to be added each year from 2016 onwards. A320neo aircraft will be added from 2016, putting Vietnam within range. Its first full-year profit is targeted by FY2017, its third year of operations.

The Chubu Centrair – New Chitose route is currently served by All Nippon Airways' (NH/ANA) Group seven times daily using Boeing 767s and 737s, Japan Airlines (JL/JAL) five times daily with 737s, Skymark Airlines (BC/SKY) twice daily with 737s, and Jetstar Japan (GK/JJP) once daily with A320s. The Fukuoka route is served by ANA six times daily with A320s, 737s, and Bombardier CRJs, Star Flyer (7G/SFJ) four times daily with A320s, de facto operating for ANA (Star Flyer to add ANA's code on all flights.), and Jetstar Japan once daily with A320s. Fuji Dream Airlines (JH/FDA) flies five round-trips connecting Nagoya/Komaki (NKM/RJNA) and Fukuoka, with JAL code-sharing on all flights.

However, Mr. Odagiri is bullish about getting slots at Tokyo/Haneda (HND/RJTT), saying Tokyo/Narita (NRT/RJAA) is too far and curfew-plagued, while Ibaraki (IBR/RJAH) is cost effective but again too far and also too small for a hub. "For 2020 (Tokyo Olympics/Paralympics), the MLIT (Japan Ministry of Land, Infrastructure, Transport, and Tourism) is considering all options, and we would like to make the necessary preparations," citing the government seriously talking about opening up airspace over metropolitan Tokyo, which could potentially create 50 or so more slot-pairs. Haneda operates four runways that are fully utilized, however, current airspace restrictions force all aircraft to arrive from and depart towards Tokyo Bay, meaning the number of movements per runway is kept low. A new runway would not make it before 2020.

AirAsia Japan (Mk I) and (Mk II) CEO Yoshinori Odagiri. (Photo: Aviation Wire)

If they fail to get slots at Haneda, Mr. Odagiri says they would have to consider Narita and Ibaraki, but at the same time ask to open up military airports in the Kanto (Greater Tokyo) region such as Japan Self Defense Force (JSDF)-controlled Atsugi (NTA/RJTA) and U.S. Air Force (USAF)-controlled Yokota (OKO/RJTY). Asked if AirAsia Japan (Mk II) is interested in partnering with troubled Skymark (Skymark posts 5.7 billion JPY loss for 1Q FY2014.), which currently holds 36 prized slot-pairs at Haneda, "Nothing has materialized, but we keep all doors open," he answered.

The Malaysia-based LCC group's first crack at the Japanese market with AirAsia Japan (JW/WAJ) (Mk I) (CoachFlyer JW8541: NRT - FUK on AirAsia Japan's Airbus A320.) ended in a divorce with joint-venture (JV) partner ANA, only 10 months after launching operations in August 2012, due to disagreements over how the airline would be run. "We would first listen to Tony (Fernandes), then bring it to ANA. But couldn't get expected responses in expected time frames," says Mr. Odagiri, who also headed the first incarnation. It ceased operations on October 26th, 2013, and relaunched as Vanilla Air (JW/VNL) under 100% ANA ownership on December 20th (Vanilla Air launches operations.). 

Another factor behind the failure was AirAsia's website being deemed difficult to use by the Japanese public; it asked to fill out passport information even on domestic flights, required to fill out the 'Issuing Bank' of a credit card which is not the norm in Japan, and simply took too much time. "What the Japanese feel as easy-to-use is something like Amazon.com," Mr. Odagiri said, adding "A Japanese manager has been assigned to take over AirAsia's website development. A revamped easy-to-use website for the entire group should be up by Spring 2015, and small bugs should be fixed by the time we start ops."

AirAsia Japan (Mk II) has already started crew recruiting. "Some employees remained with Vanilla Air for the sake of jobs, but they didn't enter the airline just to work for a company that would change its brand in just 10 months," said Mr. Odagiri, implying some if not many of the current employees at Vanilla could move to the red brand. It is rumored that AirAsia is offering crew salaries similar to ANA's figures, which could lure JAL crews, whose salaries were drastically cut during that group's restructuring. Pilot shortages have plagued LCCs Peach Aviation (MM/APJ) (Peach outlines Summer 2014 mass cancellations.) and Vanilla (Vanilla Air cancels 154 flights in June due to pilot shortage.) with mass cancellations.

Together with their recently-launched India unit, AirAsia Group's second attempt at the Japanese market is also part of their strategy to shift dependence from Southeast Asia, a still-growing but becoming an over-crowded market, to other parts of Asia and beyond, and to become a global brand. Although nothing has been decided yet, AirAsia is considering an affiliate in eastern Europe, as well as an AirAsia X India that would put Africa and Europe within range, and an AirAsia X Japan that would enable them to reach Canada, Hawaii, and west coast U.S.A. The group's recent order for 50 A330-900neo aircraft would obviously be too much for just the current AirAsia X brands in Indonesia, Malaysia, and Thailand to absorb.

Reference: Traicy, July 29th. (in Japanese)
Reference: Jiji Press, August 15th. (in Japanese)
Reference: Japan Times, August 16th. (in English)