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.

JAL Boeing 787-9 due in July; expands Sky Suite cities.

Japan Airlines [JL/JAL] will place its first Boeing 787-9 in service on the Tokyo/Narita [NRT/RJAA] – Jakarta/Soukarno-Hatta [CGK/WIII] route in July. The stretched variant of the Dreamliner will boast JAL's latest Sky Suite product with a generous layout of only 195 seats; 44 fully lie-flat Sky Suite (business class) seats, 35 Sky Premium (premium economy), and 116 Sky Wider II (economy class).

Boeing 777-346/ER JA736J on final approach to Narita. JAL has completed reconfiguring all 13 flagship 777-300ERs with the Sky Suite product. (Photo: Ryosuke Yano)

The 787-9s will basically have the same seats as the Sky Suite-configured 787-8s, the first of which entered service on the Narita – Frankfurt/Main [FRA/EDDF] route on December 1st (JAL's Sky Suite 787 makes debut.). The Sky Suite 787-8s also seat only 161, which includes 38 Sky Suite, 35 Sky Premium, and 88 Sky Wider II seats.

Meanwhile, Japan's second largest carrier is expanding Sky Suite destinations during the Summer 2015 timetable. New routes to receive the Sky Suite 787 are from Narita to Delhi/Indira Gandhi [DEL/VIDP] from March 29th, Helsinki/Vantaa [HEL/EFHK] from June 1st, and to Paris/Charles de Gaulle [CDG/LFPG] from March 29th. The Sky Suite 767 will be expanded to include Honolulu [HNL/PHNL] and Manila/Ninoy Aquino [MNL/RPLL] from Narita on March 29th.

Aimed at evoking a one-class higher feel, JAL's award-winning Sky Suite product is now available on 13 777-300ERs, four 787-8s, and nine 767-300ERs. The first Sky Suite 777 entered service on Narita – London/Heathrow [LHR/EGLL] in January 2013, and the Sky Suite 767 followed on the Narita – Vancouver [YVR/CYVR] route in December that year. In the new configuration, the 777-300ER seats eight in first, 49 in business, 40 in premium economy, and 135 in economy (232 total), and the 767-300ER seats 24 in business and 175 in economy (199 total).

Source: Japan Airlines, January 21st. (in Japanese)
Source: Japan Airlines, January 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)

JAL Sky Next to serve Itami, Hakodate, and Sapporo next.

Japan Airlines (JL/JAL), which introduced their refurbished 'JAL Sky Next' domestic aircraft on May 28th (JAL's first Sky Next 777 enters service.) on the Tokyo/Haneda (HND/RJTT) – Fukuoka (FUK/RJFF) route, will be expanding the service to Osaka/Itami (ITM/RJOO) and Hakodate (HKD/RJCH) in July, and to Sapporo/New Chitose (CTS/RJCC) in August.

Boeing 777-246 JA8985 Samurai Blue Jet supports Japan's national football (soccer) team, which is currently participating in 2014 FIFA World Cup Brazil. (Photo: Ryosuke Yano)

Boasting all-new leather seats, new carpets, Dreamliner-style LED mood lighting, and in-flight Wi-Fi (available from July), Boeing 777-289 JA007D became the first to receive the revamp. Seat pitch remains the same at 38 inches (96.5 centimeters) for Class J and 31 inches (78.7 centimeters) for economy, however, slim-style seats increased legroom by five centimeters in economy.

By mid-2016, JAL plans to have 77 aircraft with the refurbished interiors in service, comprising seven 777-300s, nine 777-200s, 20 767-300/300ERs, and 41 737-800s. Work on their 777-300s will begin in August, 767s from September, and 737-800s from October. JAL targets 34 aircraft to have completed the revamp by the end of fiscal year 2014.

Boeing 777-246 JA8981 stopped by Honolulu for refueling and crew immigrations. She is seen here leaving for her final flight to Goodyear, where she will be scrapped. (Photo: JAL)

Meanwhile, the first Triple-Seven to be retired from JAL, 777-246 JA8981 (JAL retires first Boeing 777.), was ferried via Honolulu (HNL/PHNL) to Goodyear (GYR/KGYR) in Arizona, U.S.A. on June 13th as flight JL8131. It will be dismantled for spare parts. Another five older 777-200s will be retired by March 2016, while others will receive the 'Sky Next' upgrade.

Reference: Aviation Wire, June 17th. (in Japanese)
Reference: Japan Airlines @ Facebook (in Japanese)

*Post edited/updated on June 20th.

JAL Boeing 787 makes emergency landing at Honolulu.

Japan Airlines (JL/JAL) flight JL002, service from Tokyo/Haneda (HND/RJTT) to San Francisco (SFO/KSFO) operated by a Boeing 787-8 Dreamliner, diverted to Honolulu (HNL/PHNL) and made an emergency landing in the afternoon of March 8th, local time, after the aircraft's right engine was shut down due to abnormalities with its hydraulics system.

Operated by B787-8 JA829J, the flight had departed Haneda at 0003 on March 9th, local time, and was approximately 1,800 kilometers north of Honolulu when indicators showed hydraulic oil was running low and oil pressure dropped with its No.2 engine. It was shut down and the crew made a safe emergency landing at Honolulu at 1343 on March 8th, local time, with 160 passengers and 11 crew. The Dreamliner is rated with 207-minute ETOPS (Extended Twin-engined OPerationS). JAL's B787s are powered by General Electric GEnx-1B engines and this is the first time the crew was forced to shut down an engine in flight ever since the type began service with the carrier in April 2012.

Source: Aviation Wire, March 9th. (in Japanese)