New AirAsia Japan reveals China, SE Asia, USA ambitions.

On February 15th, AirAsia Japan's (Mk II) [DJ] new Chairman Takashi Ide revealed that the delayed LCC is now preparing to start flying in Summer 2016, hopefully in July or August. Speaking at a public symposium calling for a second runway at its Nagoya/Chubu Centrair [NGO/RJGG] hub (AirAsia Japan confirms Spring 2016 launch from Nagoya.), the former Skymark Airlines [BC/SKY] executive who only joined in December (AirAsia Japan CEO to quit, ex-Skymark executives coming.) also disclosed plans for China, hubs at Taipei/Taoyuan [TPE/RCTP] and Tokyo/Narita [NRT/RJAA], plus Airbus A330s for trans-Pacific and Hawaii routes. It will also continue to push for Chubu Centrair's proposed new LCC terminal, which could open as early as FY2018 and handle up to 5 million passengers annually.

Airbus A320-216(SL) JA01DJ, which has not flown since delivery (New AirAsia Japan receives first Airbus A320.), is now being reactivated for a test flight on February 16th. AirAsia Japan (Mk II) plans to commence crew training on its own aircraft on March 15th as their first group of trainees return from Malaysia. Their second aircraft will be deferred to April, while the Mika Ninagawa-designed special livery will be adorned by their third. (Photo: Aviation Wire)

The reincarnation of AirAsia's [AK/AXM] Japanese unit was originally planned to take off in June 2015 (AirAsia Japan is officially reborn; first flight June 2015.), but was postponed to April 2016 after finally receiving an Air Operator's Certificate (AOC) in October (New AirAsia Japan receives AOC; takeoff in April 2016.), only to be delayed again after the surprising management change (New AirAsia Japan delays service entry to July 2016.). Its shareholders have agreed to together inject 3 billion JPY this month. "Former management was essentially trying to build a Japanese branch of AirAsia. But we need to be a Japanese airline in the first place," said Mr. Ide, explaining "An AOC (in Japan) only means the business structure is in place. We cannot fly yet because we have not met all the JCAB criteria to become airworthy." Mr. Ide also added "AirAsia is fun and bright, but that is outside of Japan. People are very conservative here, and it is difficult to carve out a space against ANA and JAL. I learned a lot about that (through Skymark)."

Mr. Ide reiterated that AirAsia Japan's main target would be Japan's inbound market (outbound is shrinking due to aging and a declining population). As already reported, it will start with a fleet of two 180-seat Airbus A320 flying from Chubu Centrair to Sapporo/New Chitose [CTS/RJCC], Sendai [SDJ/RJSS], and Taipei, with each city receiving double-daily frequencies. It plans to carry 150,000 passengers by 2016 year-end. In 2017, its fleet will be increased to six aircraft mostly to fuel China expansion, and Mr. Ide named Beijing/Capital [PEK/ZBAA] or Tianjin [TSN/ZBTJ], Guam [GUM/PGUM], Hong Kong [HKG/VHHH] or Macau [MFM/VMMC], Seoul/Incheon [ICN/RKSI], and Shanghai/Pudong [PVG/ZSPD] or Wuxi [WUX/ZSWX]. Mr. Ide said it will not hesitate to fly to less-congested airports that have attractive incentives for newcomers. First profit is forecasted for FY2017.

For 2018, AirAsia Japan will add three A320s for a total of nine, plus two A330s. The new Airbus wide-body aircraft will be used to open up Chubu Centrair – Singapore/Changi [SIN/WSSS], while the additional A320s will be based at a new hub at Narita and fly to Beijing or Tianjin, Hong Kong or Macau, New Chitose, Taipei, and Shanghai or Wuxi, all destinations which would already be served from Chubu Centrair by then. FY2018 is projected to see total revenue increasing to 25 billion JPY with a profit margin of 7%. During 2019, the fleet will be increased to a dozen A320s and four A330s; the A320s will be based at their third hub at Taipei and start Vietnam and Singapore using fifth freedom rights, while additional A330s will be used to launch Honolulu [HNL/PHNL] from both Chubu Centrair and Narita. FY2019 is expected to see revenue amounting to 35 billion JPY with a profit margin of 10%.

By the end of 2020, the LCC will boast 14 A320s and six A330s. The additional A330s will be used to open up its first trans-Pacific routes to Seattle-Tacoma [SEA/KSEA], though Mr. Ide noted it could be changed to San Francisco [SFO/KSFO] depending on which U.S. partner it interlines with. Meanwhile, the A320 additions will help them connect more dots, including Taipei and Narita with Seoul. By the end of FY2020, AirAsia Japan aims to fly 30 round-trips from Chubu Centair and 10 round-trips from Narita with an average load factor of 75%, producing total revenues of 50 billion JPY and a profit margin of 15%. The LCC also plans to conduct its Initial Public Offering (IPO) during FY2020.

So the details of AirAsia's second shot at Japan have now been unveiled. The importance of China had been repeated, however, as slots at key destinations dry up, it may need to fly to secondary airports. AirAsia has brand recognition in China, but how much impact a split operation among sisters would have is unsure, though it already serves multiple airports for Tokyo with AirAsia X [D7/XAX] at Tokyo/Haneda [HND/RJTT] and Thai AirAsia X [XJ/TAX] at Narita. For Japan – Southeast Asia, Vietnam and Singapore are natural priorities, as the group doesn't have local affiliates there. Meanwhile, Malaysia and Thailand are better served by its lower-cost sisters in these respective countries. It is also noteworthy that AirAsia Japan will become the first group carrier to operate A330s alongside A320s (excluding Indonesia AirAsia X [XT/IDX], for paperwork purposes); the Airbus wide-bodies will mainly serve trans-Pacific and Hawaii markets, with feed not only from Japan (which is shrinking), but from China and Southeast Asia (which is growing).

Source: Traicy, 2016 February 15th. (in Japanese)
Source: Aviation Wire, 2016 February 15th. (in Japanese)
Source: Nikkei Shimbun, 2016 February 15th. (in Japanese)

*Edited/updated on 2016 February 16th.

Jetstar Japan cuts Nagoya – Kumamoto and Kansai – Oita.

On August 19th, Jetstar Japan [GK/JJP] announced that they would suspend Nagoya/Chubu Centrair [NGO/RJGG] – Kumamoto [KMJ/RJFT] and Osaka/Kansai [KIX/RJBB] – Oita [OIT/RJFO] effective October 25th, the beginning of the Winter 2015/2016 timetable. These routes will only have survived just over a year as they were launched on October 26th (Jetstar Japan starts three routes from Kumamoto.) and July 11th (Jetstar Japan to start Kansai – Oita in October.), 2014, respectively. They also become the first terminations since the Japanese affiliate of the Australia-based LCC launched operations on July 3rd, 2012.

Airbus A320-232(SL) JA06JJ at Chubu Centrair. After Kumamoto is axed, Jetstar Japan will continue to serve Fukuoka, Kagoshima, Okinawa/Naha, and Sapporo/New Chitose from the airport serving Nagoya. While it has denied developing it into a hub for now, AirAsia Japan (Mk II) will launch in Spring 2016 with a base here. (Photo: Jetstar Japan)

"There weren't enough passengers and we didn't see demand growing as much as we had expected," said a spokesperson from the Narita-based LCC, adding "We are currently reviewing our entire network." Kansai – Oita has been served daily, while the Chubu Centrair – Kumamoto link was initially started with double-daily but decreased to once-daily from the Summer 2015 schedule. Meanwhile, they will continue to serve Oita from Narita, and Kumamoto from both Narita and Kansai (Jetstar Japan launches Kansai hub.).

Jetstar Japan surpassed 10 millionth passengers on August 5th, beating rival Peach Aviation [MM/APJ] by one day, making it the fastest LCC to achieve that milestone as it launched operations four months later than the Osaka-headquartered rival. As they start adjusting its domestic network, it will slowly shift focus to the international arena; Hong Kong [HKG/VHHH] from both Narita (Jetstar Japan starts Narita – Hong Kong.) and Kansai (Jetstar Japan goes international with Kansai – Hong Kong.) will go up to double-daily, and a new international destination is expected to be revealed soon.

On the financial side, profitability has yet to come; another 5 billion JPY is reportedly being prepared for injection together by Japan Airlines [JL/JAL] and Qantas Airways [QF/QFA]. The two biggest shareholders pumped in 11 billion JPY in October 2013 and another 7 billion JPY in October 2014 (Jetstar Japan to receive 11 billion JPY from JAL and Qantas.). "2014 was our bottom. Results have improved, and though I can't say when, we expect to be in the black soon," said Masaru Kataoka, Jetstar Japan's Chairman, adding "Now we are looking to expand into high-demand markets in North Asia and Southeast Asia."

Source: Jetstar Japan, 2015 August 5th. (in Japanese) 
Source: Aviation Wire, 2015 August 8th. (in Japanese)
Source: Jetstar Japan, 2015 August 19th. (in Japanese)
Source: Aviation Wire, 2015 August 19th. (in Japanese)

Jetstar Japan starts Narita – Hong Kong.

On June 1st, Jetstar Japan [GK/JJP] inaugurated Tokyo/Narita [NRT/RJAA] – Hong Kong [HKG/VHHH] (Jetstar Japan announces Narita – Hong Kong.), making it their second international route after Osaka/Kansai [KIX/RJBB] – Hong Kong (Jetstar Japan goes international with Kansai – Hong Kong.), which was only launched on February 28th. Operated by 180-seat Airbus A320s, the three-times-weekly service will gradually be increased to daily by September 1st.

Airbus A320-232(SL) JA08JJ is being pushed back for the inaugural flight. (Photo: Aviation Wire)

Flown by Airbus A320-232(SL) JA08JJ, maiden flight GK021 departed Narita at 0900 JST carrying 170 passengers, five flight attendants, and two pilots. One-way Starter fares, which include a seven-kilogram carry-on baggage allowance, will start from 7,500 JPY, excluding taxes and a fuel surcharge.

Flight Schedule:
Narita – Hong Kong NEW 3 weekly with A320-200. (June/1 - Jul/17)
GK021 NRT 0900 – 1240 HKG 32A/320 Mo/Tu/Th
GK022 HKG 1340 – 1900 NRT 32A/320 Mo/Tu/Th 

Narita – Hong Kong 6 weekly with A320-200. (July/18 - Aug/7, Aug/17 - 31)
GK021 NRT 0900 – 1240 HKG 32A/320 Mo/Tu/Th/Fr
GK021 NRT 0935 – 1315 HKG 32A/320 We/Su
GK022 HKG 1340 – 1900 NRT 32A/320 Mo/Tu/Th/Fr
GK022 HKG 1415 – 1935 NRT 32A/320 We/Su

Narita – Hong Kong 4 weekly with A320-200. (Aug/8 - 16)
GK021 NRT 0900 – 1240 HKG 32A/320 Mo/Th/Fr
GK021 NRT 0935 – 1315 HKG 32A/320 Su
GK022 HKG 1340 – 1900 NRT 32A/320 Mo/Th/Fr
GK22 HKG 1415 – 1935 NRT 32A/320 Su

Narita – Hong Kong 1 daily with A320-200. (Sep/1 - Oct/24)
GK021 NRT 0900 – 1240 HKG 32A/320 Mo/Tu/Fr
GK021 NRT 0935 – 1315 HKG 32A/320 We/Th/Sa/Su
GK022 HKG 1340 – 1900 NRT 32A/320 Mo/Tu/Fr
GK022 HKG 1415 – 1935 NRT 32A/320 We/Th/Sa/Su

Hong Kong becomes Jetstar Japan's first international destination from Narita, and the LCC group's fourth after Cairns [CNS/YBCS], Gold Coast [OOL/YBCG], and Melbourne/Tullamarine [MEL/YMML], all three of which are served by Australian sister Jetstar Airways [JQ/JST]. The growing Narita-based LCC carried their 9 millionth passenger on May 26th, the fastest of any Japanese LCC, and currently operates 21 routes covering 12 cities, including the former British colony.

In the coming months, Jetstar Japan intends to expand its international presence to destinations within a four-hour radius from Kansai and Narita, with South Korea and Taiwan also on its radar. Its fleet would be capped at 20 aircraft for now, as it concentrates on bringing up utilization. Asked about a third hub after Kansai (Jetstar Japan launches Kansai hub.), Chairman Masaru Kataoka said "We do need a few more hubs to increase utilization," though he refrained from disclosing any candidate cities. 

Source: Jetstar Japan, June 1st. (in Japanese)
Source: Aviation Wire, June 1st. (in Japanese)

Jetstar Japan announces Narita – Hong Kong.

On April 7th, Jetstar Japan [GK/JJP] announced that they will commence Tokyo/Narita [NRT/RJAA] – Hong Kong [HKG/VHHH] on June 1st. It becomes the Narita-based LCC's second international route after Osaka/Kansai [KIX/RJBB] – Hong Kong (Jetstar Japan goes international with Kansai – Hong Kong.), which was started on February 28th, and the first overseas link from their home base. The new service will start out with three weekly flights, and will gradually increase to daily from September 1st.

Airbus A320-232(SL) JA18JJ approaching Narita. The fleet of 180-seat A320s is capped at 20 for now, and new services will come from increasing utilization. (Photo: Ryosuke Yano)

180-seat Airbus A320s will be deployed. One-way Starter fares, which include a seven-kilogram carry-on baggage allowance, will start from 7,500 JPY, excluding taxes and a fuel surcharge. Tickets will go on sale on April 8th at 1400 JST, and a 990-JPY promotional fare will be offered in limited numbers.

Flight Schedule:
Narita – Hong Kong NEW 3 weekly with A320-200. (June/1 - Jul/17)
GK21 NRT 0900 – 1240 HKG 32A/320 Mo/Tu/Th
GK22 HKG 1340 – 1900 NRT 32A/320 Mo/Tu/Th

Narita – Hong Kong 6 weekly with A320-200. (July/18 - Aug/7, Aug/17 - 31)
GK21 NRT 0900 – 1240 HKG 32A/320 Mo/Tu/Th/Fr
GK21 NRT 0935 – 1315 HKG 32A/320 We/Su
GK22 HKG 1340 – 1900 NRT 32A/320 Mo/Tu/Th/Fr
GK22 HKG 1415 – 1935 NRT 32A/320 We/Su

Narita – Hong Kong 4 weekly with A320-200. (Aug/8 - 16)
GK21 NRT 0900 – 1240 HKG 32A/320 Mo/Th/Fr
GK21 NRT 0935 – 1315 HKG 32A/320 Su
GK22 HKG 1340 – 1900 NRT 32A/320 Mo/Th/Fr
GK22 HKG 1415 – 1935 NRT 32A/320 Su

Narita – Hong Kong 1 daily with A320-200. (Sep/1 - Oct/24)
GK21 NRT 0900 – 1240 HKG 32A/320 Mo/Tu/Fr
GK21 NRT 0935 – 1315 HKG 32A/320 We/Th/Sa/Su
GK22 HKG 1340 – 1900 NRT 32A/320 Mo/Tu/Fr
GK22 HKG 1415 – 1935 NRT 32A/320 We/Th/Sa/Su

Jetstar Japan becomes the third LCC to enter the Tokyo – Hong Kong market, after Vanilla Air [JW/VNL], which operates twice daily from Narita (Vanilla Air inaugurates Hong Kong.), and Hong Kong Express Airways [UO/HKE] (d.b.a. HK Express), which operates twice daily from Tokyo/Haneda [HND/RJTT] and once daily from Narita. Full-service carriers All Nippon Airways [NH/ANA], Cathay Pacific Airways [CX/CPA], and Japan Airlines [JL/JAL] all serve the route from both Tokyo airports.

Meanwhile, the Kansai – Hong Kong service seems to be doing well so far, with load factors reportedly hovering well above 80%. Although they were expecting 60% of the passengers to be non-Japanese, that figure is more than 80%, according to the airline. The Japanese unit of the Australian-born LCC is also expanding its domestic network, having launched Nagoya/Chubu Centrair [NGO/RJGG] – Okinawa/Naha [OKA/ROAH] on March 29th (Jetstar Japan commences Nagoya – Okinawa.).

In other news, long-time Jetstar Group executive Gerry Turner has been appointed the new CEO of Jetstar Japan effective April 1st. Mr. Turner, a former Ryanair [FR/RYR] executive from Ireland who helped launch Jetstar Airways [JQ/JST] with now Qantas Airways [QF/QFA] boss Alan Joyce in 2004, replaces Miyuki Suzuki, who stepped down on March 31st for another executive role, understood to be at Cisco Japan. As Japanese carriers are required to have a Japanese president, Masaru Kataoka, Jetstar Group's regional general manager in Japan, has been promoted to become Chairman and Representative Director.

Source: Jetstar Japan, April 1st. (in Japanese)
Source: Sydney Morning Herald, April 1st. (in English)
Source: Jetstar Japan, April 7th. (in Japanese)
Source: Aviation Wire, April 7th. (in Japanese)

Jetstar Japan goes international with Kansai – Hong Kong.

On February 28th, Jetstar Japan [GK/JJP] launched their long-awaited first international service linking Osaka/Kansai [KIX/RJBB] and Hong Kong [HKG/VHHH] (Jetstar Japan loads first international to Hong Kong.). The new route will be served three times weekly using 180-seat Airbus A320s. Operated by A320-232(SL) JA19JJ, inaugural flight GK061 departed Kansai at 0956 JST with a load of 179 passengers and landed at Hong Kong at 1308 HKT. 170 passengers boarded the return leg.

Airbus A320-232(SL) JA19JJ departs Hong Kong for her return leg to Kansai on the inaugural day. Jetstar Japan is the first Japanese LCC to reach 20 aircraft. The fleet will be kept at 20 for the foreseeable future, and expansion will come from increasing utilization. (Photo: Aviation Wire)

Until March 28th, the round-trip will be operated on Fridays, Saturdays, and Sundays, except for March 3rd. From the Summer 2015 timetable effective March 29th, it will switch to Wednesdays, Fridays, and Sundays. One-way fares start from 5,990 JPY for the basic Starter fare, which includes a seven-kilogram carry-on baggage allowance. The price does not include fuel surcharges, taxes, and a processing fee.

Flight Schedule:
Kansai – Hong Kong NEW 3 weekly with A320-200. (Feb/28 - July/17)
GK061 KIX 0955 – 1310 HKG 32A/320 Sa *Feb/28 only.
GK061 KIX 0840 – 1155 HKG 32A/320 Tu *Mar/3 only.
GK061 KIX 0835 – 1150 HKG 32A/320 Fr/Su *Mar/6 - 28.
GK061 KIX 0955 – 1310 HKG 32A/320 Sa *Mar/6 - 28.
GK063 KIX 1720 – 2015 HKG 32A/320 We/Fr/Su *Mar/29 - Jul/17.
GK062 HKG 1410 – 1825 KIX 32A/320 Sa *Feb/28 only.
GK062 HKG 1300 – 1715 KIX 32A/320 Tu *Mar/3 only.
GK062 HKG 1245 – 1700 KIX 32A/320 Fr/Su *Mar/6 - 28.
GK062 HKG 1410 – 1825 KIX 32A/320 Sa *Mar/6 - 28.
GK064 HKG 2125 – 0205(+1) KIX 32A/320 We/Fr/Su *Mar/29 - Jul/17.

"We feel a connection with Kansai. It was the first airport in Japan our Jetstar Group started serving, when Jetstar Airways [JQ/JST] launched flights in 2007," said CEO Miyuki Suzuki. Asked about the modest frequency, "Stabilizing our operations at Kansai is our priority; then we will consider adding more flights," Mrs. Suzuki answered. Regarding pilot shortage, which caused massive travel disruptions at competitors Peach Aviation [MM/APJ] (Peach outlines Summer 2014 mass cancellations.) and Vanilla Air [JW/VNL] (Vanilla Air cancels 154 flights in June due to pilot shortage.) last summer, Mrs. Suzuki confirmed "We have enough recruits."

The Kansai – Hong Kong route sees LCC competition with homegrown Peach Aviation [MM/APJ] and Hong Kong Express Airways [UO/HKE] (d.b.a. HK Express) both flying twice daily. Jetstar Japan will also need to fight with some full-service carriers; Air India [AI/AIC] flies three times weekly, All Nippon Airways [NH/ANA] once daily, and Cathay Pacific Airways [CX/CPA] five to six daily. 33.3%-owner Japan Airlines [JL/JAL] does not operate the route. However, if sister carrier Jetstar Hong Kong [JM/JKT] can secure an operating permit from the local authorities, synergies, including connections, could help both.

The Narita-based LCC, which took delivery of its 20th A320 in December, finally launched their second hub at Kansai last June (Jetstar Japan launches Kansai hub.), after repeated delays caused by shortage of maintenance crews (Jetstar Japan delays Kansai hub, cancels 101 flights.). Besides the new Hong Kong service, it currently operates 18 domestic routes covering 11 cities, with Nagoya/Chubu Centrair [NGO/RJGG] – Okinawa/Naha [OKA/ROAH] to be added next month (Jetstar Japan to start Nagoya – Okinawa.). Asked about new routes, Mrs. Suzuki replied "We hope to launch a couple of new destinations from Narita and Kansai by the end of this year," without mentioning any candidate cities.

Source: Aviation Wire, February 28th. (in Japanese)

Peach commences Okinawa – Hong Kong.

On February 21st, Peach Aviation [MM/APJ] launched four-times-weekly Okinawa/Naha [OKA/ROAH] – Hong Kong [HKG/VHHH] service with 180-seat Airbus A320s, as announced in September last year (Peach announces Okinawa – Hong Kong.). The new link becomes the Osaka/Kansai [KIX/RJBB]-headquartered LCC's seventh international route overall, and its fourth nonstop destination from its second hub at Naha (Peach launches Naha hub; but Naha – Ishigaki axed.).

Peach's Naha staff see off Airbus A320-214 JA803P depart on their inaugural flight to Hong Kong on February 21st. The launch of their long-awaited first route to Southeast Asia from the Ryukyu airport this summer will likely coincide with their 15th A320 delivery in July. (Photo: Aviation Wire)

The last time the route saw a Japanese carrier operating was until March 2003 with Japan Airlines [JL/JAL]; Peach thus becomes the first LCC to fly the route and the first Japanese airline in 12 years.

The inaugural outbound flight MM965 departed Naha at 1522 JST with a load of 127 passengers, including three children. A320-214 JA803P was assigned to the flight. Meanwhile, the first inbound flight MM964 touched down at Naha at 1605 JST with 168 passengers on board. It was operated by A320-214 JA801P. Victor L. L. Chu, Chairman of Hong Kong-based Far Eastern Investment Group, which owns 33.3% of Peach, was also on the inaugural inbound leg.

Flight Schedule (Feb/21 - Mar/28)
Naha – Hong Kong NEW 4 weekly with A320-200.
MM965 OKA 1645 – 1830 HKG 320 Mo
MM965 OKA 1530 – 1715 HKG 320 We
MM965 OKA 1525 – 1710 HKG 320 Sa
MM965 OKA 1305 – 1450 HKG 320 Su
MM964 HKG 1235 – 1550 OKA 320 Mo/We/Sa/Su

Flight Schedule (Mar/29 - Oct/24)
Naha – Hong Kong 3 weekly with A320-200.
MM965 OKA 1340 – 1505 HKG 320 Mo/Fr/Sa
MM964 HKG 1230 – 1600 OKA 320 Mo/Fr/Sa

One-way fares start from 7,180 JPY. Peach has initially decided to serve the route four times a week, but will reduce to three times during the upcoming Summer 2015 timetable. CEO Shinichi Inoue says he wants to fly the route daily, as soon as favorable slot times become available at the bustling airport serving the former British colony. "Inbound demand has been extraordinary, and I'm convinced that Okinawa is already a very attractive destination," Mr. Inoue commented, adding "We wanted to launch the route in time for the Chinese New Year peak travel period."

Meanwhile, Mr. Inoue also confirmed that their first destination in Southeast Asia will be served from Naha this summer, and the city will be revealed in March. "From Naha, we eventually want to fly to Ho Chi Minh City, Hanoi, Bangkok, Kuala Lumpur, and Singapore," said Mr. Inoue. Earlier in February, Airports of Thailand (AoT), which manages the kingdom's six major international airports, disclosed that Peach is discussing Naha – Bangkok/Don Mueang [DMK/VTBD] (Peach mulls Okinawa – Bangkok.). With Thailand now being Japan's sixth biggest inbound market accounting for 4.9% of all foreign visitors, and Japan the most popular outbound market for Thailand, this route is highly likely to become Peach's first link to Southeast Asia.

The Naha hub was launched in July 2014 with ambitions to use it as a scissors hub to funnel passengers between the main islands of Japan and Southeast Asia. From their Okinawa hub, the growing LCC serves Fukuoka [FUK/RJFF], Kansai, Taipei/Taoyuan [TPE/RCTP], and now Hong Kong. Naha – Ishigaki, which was axed in July 2014 owing to heavy competition (Peach launches Naha hub; but Naha – Ishigaki axed.), could be resumed when the airline has "enough resources to fly two or three daily flights," Mr. Inoue said. Miyako [MMY/ROMY] is also on Peach's radar. Meanwhile, a third hub is being set up at Tokyo/Narita [NRT/RJAA] (Peach confirms Narita hub; adds Fukuoka and Sapporo.).

Source: Ryukyu Shimpo, February 21st. (in Japanese)
Source: Aviation Wire, February 21st. (in Japanese)

ANA reveals Kuala Lumpur and expansion at Narita.

On January 21st, All Nippon Airways [NH/ANA] revealed the resumption of Tokyo/Narita [NRT/RJAA] – Kuala Lumpur/Sepang [KUL/WMKK] from September 1st, to be flown daily with 240-seat (42 business and 198 economy class) Boeing 787-8s. Malaysia's capital was served via Bangkok/Don Mueang [DMK/VTBD] until December 2001.

Boeing 767-381 JA8291 left Japan on January 19th as NH9432, heading to Victorville (via Anchorage), where it will be scrapped. ANA's non-ER 767 fleet is now down to 18. As additional 787s arrive, more 767-300ERs will be converted to domestic configuration, replacing the older non-ER 767s. (Photo: Ryosuke Yano)

The route sees competition from AirAsia X [D7/XAX], which operates daily from Tokyo/Haneda [HND/RJTT] and four times weekly from Narita, Japan Airlines [JL/JAL] with a daily flight from Narita, and Malaysian Airline System [MH/MAS] (d.b.a. Malaysia Airlines) with 10 times weekly from Narita.

Flight Schedule:
Narita – Kuala Lumpur/Sepang NEW 1 daily with 787-8. (2015/Sep/1 - Oct/24)
NH815 NRT 1720 – 2335 KUL 788 Daily
NH816 KUL 0700 – 1500 NRT 788 Daily

Meanwhile, additional frequencies from its Narita hub were also announced, strengthening its Haneda/Narita dual-hub strategy for Tokyo. The resumption of its second daily flights to Bangkok/Suvarnabhumi [BKK/VTBS] and Singapore/Changi [SIN/WSSS], along with new daily service to Houston/George Bush [IAH/KIAH] had been previously announced (ANA announces Houston and Southeast Asia expansion.), but a second daily flight to Honolulu [HNL/PHNL] from July 17th has been added to the list.

Flight Schedule:
Narita – Honolulu increase from 1 to 2 daily. (2015/Jul/17 - Oct/24)
NH184/NQ184 NRT 2035 – 0910 HNL 76W/763 Daily *NEW from Jul/17.
NH182/NQ182 NRT 2130 – 1005 HNL 76W/763 Daily
NH183/NQ183 HNL 1140 – 1455(+1) NRT 76W/763 Daily *NEW from Jul/17.
NH181/NQ181 HNL 1300 – 1615(+1) NRT 76W/763 Daily

It will also continue its second daily Haneda – Hong Kong [HKG/VHHH] service twice a week (ANA adds Haneda – Hong Kong midnight flight.), and increase its Narita – Chengdu [CTU/ZUUU] route from four times weekly to daily from March 29th.

ANA is also reportedly working to launch Haneda – Sydney [SYD/YSSY] during FY2015, possibly from the Winter 2015/2016 timetable. Economic ties are expected to grow after the Australia-Japan Economic Partnership Agreement (EPA) came into effect this month, and Qantas Airways [QF/QFA] has already announced plans to start flying the route in August using Haneda's midnight slots. Japan's now largest carrier operated Narita – Sydney, via Brisbane [BNE/YBBN], until June 1998, and Osaka/Kansai [KIX/RJBB] – Sydney until March 1999.

Other routes that seem to be on ANA's wishlist are Haneda – Istanbul/Atatürk [IST/LTBA] (ANA considering Haneda – Istanbul.) and a non-stop route to Cambodia (either Phnom Penh or Siem Reap), which would be a first for any scheduled carrier.

Source: All Nippon Airways, January 21st. (in Japanese)

Jetstar Japan loads first international to Hong Kong.

On December 3rd, Jetstar Japan [GK/JJP] announced that they will launch its first international service on February 28th from Osaka/Kansai [KIX/RJBB] to Hong Kong [HKG/VHHH]. The Tokyo/Narita [NRT/RJAA]-headquartered LCC will start with three weekly flights using 180-seat Airbus A320s, with frequency to be increased gradually.

Airbus A320-232(SL) JA17JJ taxies at New Chitose Airport near Sapporo. (Photo: Ryosuke Yano)

It will operate a morning outbound leg from Kansai and an afternoon return leg from Hong Kong on Fridays, Saturdays, and Sundays until March 28th, except for February 28th and March 3rd, which is a Saturday and Tuesday. From March 29th through July 17th, the flight will operate on Wednesdays, Fridays, and Sundays, and time will also move to an evening departure and a red-eye return arrival.

Flight Schedule (February 28th - July 17th, 2015):
Kansai – Hong Kong NEW 3 weekly with A320-200.
GK061 KIX 0955 – 1310 HKG 32A/320 Sa *Feb/28 only.
GK061 KIX 0840 – 1155 HKG 32A/320 Tu *Mar/3 only.
GK061 KIX 0835 – 1150 HKG 32A/320 Fr/Su *Mar/6 - 28.
GK061 KIX 0955 – 1310 HKG 32A/320 Sa *Mar/6 - 28.
GK063 KIX 1720 – 2015 HKG 32A/320 We/Fr/Su *Mar/29 - Jul/17.
GK062 HKG 1410 – 1825 KIX 32A/320 Sa *Feb/28 only.
GK062 HKG 1300 – 1715 KIX 32A/320 Tu *Mar/3 only.
GK062 HKG 1245 – 1700 KIX 32A/320 Fr/Su *Mar/6 - 28.
GK062 HKG 1410 – 1825 KIX 32A/320 Sa *Mar/6 - 28.
GK064 HKG 2125 – 0205(+1) KIX 32A/320 We/Fr/Su *Mar/29 - Jul/17.

Fares will start from 5,990 JPY and go up to 33,490 JPY, excluding the 2,200 JPY fuel surcharge, for a one-way Starter fare, which only includes a seven-kilogram carry-on baggage allowance. Tickets went on sale today, December 3rd, at 1600 JST. A limited number of seats are being offered at a promotional price of 599 JPY, excluding the 2,200 JPY fuel surcharge. Fares can be upgraded to Plus Bundle for 2,000 JPY extra, which adds mileage accrual on either Japan Airlines' [JL/JAL] Mileage Bank or Qantas Airways' [QF/QFA] Frequent Flyer, free seat selection, and a 1,000 JPY voucher for use on board. 12,400 JPY extra would get you a Max Bundle fare, which adds a 20-kilogram check-in baggage allowance, flight change flexibility (at a cost), and partner lounge access, in addition to the Plus Bundle benefits.

Japan – Hong Kong had been a market not penetrated by LCCs, until Hong Kong Express Airways [UO/HKE] (d.b.a. HK Express) and Peach Aviation [MM/APJ] entered relatively recently. Jetstar Japan's choice of the former British colony may also have to do with shareholder JAL not serving the market from Kansai anymore. Narita may have been avoided (at least initially) due to LCCs rapidly adding capacity in the coming months, with Vanilla Air [JW/VNL] (Vanilla Air inaugurates Hong Kong.) going double-daily and HK Express going 12 weekly from February. The latter is also going double-daily on their Tokyo/Haneda [HND/RJTT] route later this month.

But Kansai doesn't seem too much easier. Rival Peach already operates double-daily along with HK Express' double-daily. It will also need to fight with the full-service carriers; Air India [AI/AIC] flies three weekly, All Nippon Airways [NH/ANA] once daily, and Cathay Pacific Airways [CX/CPA] five to six daily. However, if sister carrier Jetstar Hong Kong [JM/JKT] succeeds in obtaining an operating permit from the local authorities, synergies, including connections, could help both.

Regional international routes is the last ingredient of Jetstar Japan's original recipe. A 11 billion JPY capital injection by its two major shareholders JAL and Qantas was only announced last week (Jetstar Japan to receive 11 billion JPY from JAL and Qantas.), after the so-far-unprofitable LCC posted another 11.1 billion JPY loss (Jetstar Japan lost 11.1 billion JPY in its third year.), its biggest loss yet, which put themselves in three consecutive years of losses. An insufficient number of trained maintenance workers had repeatedly delayed the launch of its Kansai hub (Jetstar Japan launches Kansai hub.), which lowered aircraft utilization rates and forced the company to delay opening new routes.

Source: Jetstar Japan, December 3rd. (PDF; in Japanese)

Peach announces Okinawa – Hong Kong.

On September 25th, Peach Aviation [MM/APJ] announced their intention to start four-times-weekly Okinawa/Naha [OKA/ROAH] – Hong Kong [HKG/VHHH] service on February 21st, 2015. It will be operated on Mondays, Wednesdays, Saturdays, and Sundays using 180-seat Airbus A320s.

Airbus A320-214 JA801P lines up for takeoff from Runway 19R at New Chitose Airport near Sapporo on a clear October afternoon. (Photo: Ryosuke Yano)

This becomes the seventh international route for the Osaka/Kansai [KIX/RJBB]-based LCC, which only opened its second hub at Naha on July 19th (Peach launches Naha hub; but Naha – Ishigaki axed.). It will be the fourth direct link from Naha after Fukuoka [FUK/RJFF], Kansai, and Taipei/Taoyuan [TPE/RCTP]. The last time a Japanese carrier flew the route was 12 years ago. Peach already operates double-daily flights to Hong Kong from Kansai.

Flight Schedule (effective February 21st through March 28th, 2015):
Naha – Hong Kong NEW 4 weekly with A320-200.
MM965 OKA 1645 – 1830 HKG 320 Mo
MM965 OKA 1530 – 1715 HKG 320 We
MM965 OKA 1525 – 1710 HKG 320 Sa
MM965 OKA 1305 – 1450 HKG 320 Su
MM964 HKG 1235 – 1550 OKA 320 Mo/We/Sa/Su
 
Prices will range from 7,180 JPY to 33,580 JPY for a one-way unbundled Happy Peach fare, while one-way Happy Peach Plus, which includes one baggage allowance, free seat selection, and no charge for flight change, will range from 9,980 JPY to 41,580 JPY. Tickets will go on sale tomorrow on November 26th.

The new route also becomes the first to be launched after Peach encountered pilot shortages which caused widely-publicized travel disruptions (Peach outlines Summer 2014 mass cancellations.) this past summer. Their 14th A320 was delivered earlier this month, and Peach will start expanding again cautiously, on top of what was already a conservative plan to add only three aircraft each year through 2016.

Reference: Nikkei Shimbun, November 24th. (in Japanese)
Reference: Aviation Wire, November 25th. (in Japanese) 

Vanilla Air inaugurates Hong Kong.

On November 2nd, Vanilla Air [JW/VNL] launched thrice-weekly service to Hong Kong [HKG/VHHH] from their hub at Tokyo/Narita [NRT/RJAA]. Frequency will gradually increase, becoming daily from February 1st and then double daily from February 21st, coinciding with the delivery of their seventh and eighth 180-seat Airbus A320s. One of the two flights will run on a red-eye schedule.

Airbus A320-216(SL) JA04VA departs Narita for the first flight to Hong Kong. (Photo: Aviation Wire)

The inaugural flight to Hong Kong, flight JW299, departed at 0905 JST, five minutes before published time with a load of 175 passengers (including two infants), five cabin attendants, and two pilots. A320-216(SL) JA04VA, configured with 180 seats, was assigned. The first return leg from Hong Kong, flight JW300, had 146 bookings. One-way fares start from 8,000 JPY for a ticket with no baggage allowance (Simple Vanilla) and 9,500 JPY for an inclusive ticket with 20 kilograms of baggage allowance plus free seat selection (Komi-komi Vanilla).

Flight Schedule:
Narita – Hong Kong NEW 3 weekly with A320-200.
JW311 NRT 0750 – 1150 HKG 32A Tu *2014/Nov/2 - Dec/31.
JW311 NRT 0945 – 1345 HKG 32A Th *2014/Nov/2 - Dec/31.
JW311 NRT 0910 – 1310 HKG 32A Su *2014/Nov/2 - Dec/31.
JW311 NRT 0735 – 1150 HKG 32A Tu *2015/Jan/1 - 31.
JW311 NRT 0930 – 1345  HKG 32A Th *2015/Jan/1 - 31.
JW311 NRT 0855 – 1310 HKG 32A Su *2015/Jan/1 - 31.
JW312 HKG 1245 – 1740 NRT 32A Tu *2014/Nov/2 - Dec/31.
JW312 HKG 1445 – 1940 NRT 32A Th *2014/Nov/2 - Dec/31.
JW312 HKG 1410 – 1905 NRT 32A Su *2014/Nov/2 - Dec/31.
JW312 HKG 1245 – 1730 NRT 32A Tu *2015/Jan/1 - 31.
JW312 HKG 1445 – 1930 NRT 32A Th *2015/Jan/1 - 31.
JW312 HKG 1410 – 1900 NRT 32A Su *2015/Jan/1 - 31.

Narita – Hong Kong increase from 3 weekly to 1 daily with A320-200. *2015/Feb/1 - 21.
JW311 NRT 0855 – 1310 HKG 32A Mo
JW311 NRT 0735 – 1150 HKG 32A Tu
JW311 NRT 0805 – 1220 HKG 32A We/Fr
JW311 NRT 0930 – 1345 HKG 32A Th
JW311 NRT 0825 – 1240 HKG 32A Sa
JW311 NRT 0855 – 1310 HKG 32A Su
JW312 HKG 1410 – 1900 NRT 32A Mo
JW312 HKG 1245 – 1730 NRT 32A Tu
JW312 HKG 1320 – 1805 NRT 32A We/Fr
JW312 HKG 1445 – 1930 NRT 32A Th
JW312 HKG 1340 – 1825 NRT 32A Sa
JW312 HKG 1410 – 1900 NRT 32A Su

Narita – Hong Kong increase from 1 to 2 daily with A320-200. *2015/Feb/21 - Mar/28.
JW311 NRT 0855 – 1310 HKG 32A Mo
JW311 NRT 0735 – 1150 HKG 32A Tu
JW311 NRT 0805 – 1220 HKG 32A We/Fr
JW311 NRT 0930 – 1345 HKG 32A Th
JW311 NRT 0825 – 1240 HKG 32A Sa
JW311 NRT 0855 – 1310 HKG 32A Su
JW315 NRT 2100 – 0155(+1) HKG 32A Mo
JW315 NRT 2055 – 0135(+1) HKG 32A Tu
JW315 NRT 2055 – 0115(+1) HKG 32A We/Th/Fr/Sa/Su
JW310 HKG 0200 – 0645 NRT 32A Mo/Fr/Sa/Su *From 2015/Feb/22.
JW310 HKG 0220 – 0705 NRT 32A Tu/We/Th *From 2015/Feb/22.
JW312 HKG 1410 – 1900 NRT 32A Mo
JW312 HKG 1245 – 1730 NRT 32A Tu
JW312 HKG 1320 – 1805 NRT 32A We/Fr
JW312 HKG 1445 – 1930 NRT 32A Th
JW312 HKG 1340 – 1825 NRT 32A Sa
JW312 HKG 1410 – 1900 NRT 32A Su

"Demand for travel from Hong Kong to Japan is very strong. It's been showing double-digit growth, and there is a 20% increase so far this year compared to last year, with the total number probably falling around 800,000 passengers. On the other hand, the number of travelers from Japan to Hong Kong was 1.2 million in 2012, but decreased to 1 million in 2013. I think we can contribute in bringing that figure up," said Tomonori Ishii, President of Vanilla Air. "Our target load factor is 80%. Regarding distribution channels, we expect 80% would be sold directly by us, while the remaining 20% would be through travel agencies. The latter is especially important during off-peak periods. We're also improving our smartphone application," he added.

The fledgling Narita-based carrier becomes the first LCC to serve Hong Kong from the airport. The Tokyo – Hong Kong market remained unpenetrated by LCCs until November 2013, when Hong Kong Express Airways [UO/HKE] (d.b.a. HK Express) launched Tokyo/Haneda [HND/RJTT] – Hong Kong. All Nippon Airways [NH/ANA] operates two daily from Narita and one from Haneda, Japan Airlines [JL/JAL] flies one each from Haneda and Narita, and Cathay Pacific Airways [CX/CPA] operates five from Narita and two from Haneda. Delta Air Lines [DL/DAL] ended their single daily Narita service on October 24th. But now, HK Express is adding a second Haneda flight from November 18th as well as a Narita flight from December 8th, and ANA is launching a second Haneda flight from December 20th (ANA adds Haneda – Hong Kong midnight flight.).

In other news, Vanilla Air is starting to see improved load factors. Their September load factors for international was 87.5% (37,818 out of 43,200 seats) and domestic stood at 87.8% (80,572 out of 91,800 seats), just a few points lower than their record 90.1% (40,238 out of 44,640 seats) and 92.1% (96,946 out of 105,220 seats), respectively, for August, the peak summer vacation travel season in Japan. Their load factors before that were 83.3% for international (36,680 out of 44,280 seats) and 77.5% for domestic (79,491 out of 102,592 seats) in July, when they launched Amami [ASJ/RJKA] service (Vanilla Air launches Narita – Amami.), and 72.7% (31,388 out of 43,200 seats) and 58.7% (32,622 out of 55,600 seats), respectively, in June.

The next city on Vanilla Air's plans is Kaohsiung [KHH/RCKH], Taiwan's second largest city, to be added on February 1st next year (Vanilla Air works out details for Hong Kong and Kaohsiung.).

Reference: Aviation Wire, September 30th. (in Japanese)
Reference: Aviation Wire, October 31st. (in Japanese)
Reference: Aviation Wire, November 2nd. (in Japanese)

Vanilla Air works out details for Hong Kong and Kaohsiung.

On September 10th, Vanilla Air (JW/VNL) announced the timetable for their new routes from the Tokyo/Narita (NRT/RJAA) hub to Hong Kong (HKG/VHHH) and Kaohsiung (KHH/RCKH) (Vanilla Air announces Hong Kong and Kaohsiung.), which will be commenced from November 2nd, 2014 and February 1st, 2015, respectively.

Airbus A320-216(SL) JA01VA at Narita. Three brand-new sharklet-equipped A320s will be delivered between September and November, allowing them to phase-out the 166-seat secondhand former ANA A320s. Two more will be delivered in early 2015 to allow for the Hong Kong frequency increase and Kaohsiung inauguration. (Photo: Vanilla Air)

The wholly-owned LCC subsidiary of ANA Holdings, parent of All Nippon Airways (NH/ANA), will start Hong Kong service with three weekly round-trips, which will gradually be increased to daily from February 1st and double daily from February 21st. One of the two daily will be a red-eye flight. Meanwhile, the Kaohsiung route will be served daily from February 1st. It will be the second destination Vanilla Air serves in Taiwan after Taipei/Taoyuan (TPE/RCTP).

"Japan is seeing a growing number of tourists from Asia. Visitor numbers from Hong Kong and Taiwan have been recording the month's highest for 18 months in a row, and we're very pleased to announce the new routes. As the first LCC serving the two cities from Narita, my heart is filled with new ambitions," said Tomonori Ishii, President of Vanilla Air.

Flight Schedule:
Narita – Hong Kong NEW 3 weekly with A320-200.
JW311 NRT 0750 – 1150 HKG 32A Tu *2014/Nov/2 - Dec/31.
JW311 NRT 0945 – 1345 HKG 32A Th *2014/Nov/2 - Dec/31.
JW311 NRT 0910 – 1310 HKG 32A Su *2014/Nov/2 - Dec/31.
JW311 NRT 0735 – 1150 HKG 32A Tu *2015/Jan/1 - 31.
JW311 NRT 0930 – 1345  HKG 32A Th *2015/Jan/1 - 31.
JW311 NRT 0855 – 1310 HKG 32A Su *2015/Jan/1 - 31.
JW312 HKG 1245 – 1740 NRT 32A Tu *2014/Nov/2 - Dec/31.
JW312 HKG 1445 – 1940 NRT 32A Th *2014/Nov/2 - Dec/31.
JW312 HKG 1410 – 1905 NRT 32A Su *2014/Nov/2 - Dec/31.
JW312 HKG 1245 – 1730 NRT 32A Tu *2015/Jan/1 - 31.
JW312 HKG 1445 – 1930 NRT 32A Th *2015/Jan/1 - 31.
JW312 HKG 1410 – 1900 NRT 32A Su *2015/Jan/1 - 31.

Narita – Hong Kong increase from 3 weekly to 1 daily with A320-200. *2015/Feb/1 - 21.
JW311 NRT 0855 – 1310 HKG 32A Mo
JW311 NRT 0735 – 1150 HKG 32A Tu
JW311 NRT 0805 – 1220 HKG 32A We/Fr
JW311 NRT 0930 – 1345 HKG 32A Th
JW311 NRT 0825 – 1240 HKG 32A Sa
JW311 NRT 0855 – 1310 HKG 32A Su
JW312 HKG 1410 – 1900 NRT 32A Mo
JW312 HKG 1245 – 1730 NRT 32A Tu
JW312 HKG 1320 – 1805 NRT 32A We/Fr
JW312 HKG 1445 – 1930 NRT 32A Th
JW312 HKG 1340 – 1825 NRT 32A Sa
JW312 HKG 1410 – 1900 NRT 32A Su

Narita – Hong Kong increase from 1 to 2 daily with A320-200. *2015/Feb/21 - Mar/28.
JW311 NRT 0855 – 1310 HKG 32A Mo
JW311 NRT 0735 – 1150 HKG 32A Tu
JW311 NRT 0805 – 1220 HKG 32A We/Fr
JW311 NRT 0930 – 1345 HKG 32A Th
JW311 NRT 0825 – 1240 HKG 32A Sa
JW311 NRT 0855 – 1310 HKG 32A Su
JW315 NRT 2100 – 0155(+1) HKG 32A Mo
JW315 NRT 2055 – 0135(+1) HKG 32A Tu
JW315 NRT 2055 – 0115(+1) HKG 32A We/Th/Fr/Sa/Su
JW310 HKG 0200 – 0645 NRT 32A Mo/Fr/Sa/Su *From 2015/Feb/22.
JW310 HKG 0220 – 0705 NRT 32A Tu/We/Th *From 2015/Feb/22.
JW312 HKG 1410 – 1900 NRT 32A Mo
JW312 HKG 1245 – 1730 NRT 32A Tu
JW312 HKG 1320 – 1805 NRT 32A We/Fr
JW312 HKG 1445 – 1930 NRT 32A Th
JW312 HKG 1340 – 1825 NRT 32A Sa
JW312 HKG 1410 – 1900 NRT 32A Su

Narita – Kaohsiung NEW 1 daily with A320-200.
JW121 NRT 1145 – 1520 KHH 32A Daily *2015/Feb/1 - Mar/28.
JW122 KHH 1600 – 2025 NRT 32A Daily *2015/Feb/1 - Mar/28.

The Narita – Hong Kong route is currently only served by full-service carriers (FSCs) including ANA, Cathay Pacific Airways (CX/CPA), Delta Air Lines (DL/DAL) (final service on October 24th), and Japan Airlines (JL/JAL), however, Hong Kong-based LCC Hong Kong Express Airways (UO/HKE) (d.b.a. HK Express) runs a daily round-trip to and from Haneda (HND/RJTT), Tokyo's preferred airport, and plans are underway to launch a daily Narita service from March next year.

Vanilla Air's one-way fares to Hong Kong will start from 8,000 JPY and Kaohsiung from 7,000 JPY, excluding processing and airport fees. Reservations will start tomorrow at 1400 JST September 11th. With the new routes, the fledgling LCC's network will grow to four international and three domestic destinations. Other cities under consideration include Guam, Macau, Saipan, and Taichung.

Reference: Vanilla Air, September 10th. (in Japanese)