Vanilla Air announces Okinawa – Taipei.

On May 25th, Vanilla Air [JW/VNL] announced that it will commence Okinawa/Naha [OKA/ROAH] – Taipei/Taoyuan [TPE/RCTP] on September 14th. An additional Tokyo/Narita [NRT/RJAA] – Naha round-trip will also be added at the same time. All flights will be operated by 180-seat Airbus A320-200s. The LCC arm of ANA Holdings continues to add more destinations from Taipei, which is set to become their second hub and the first outside Japan.

Airbus A320-214(SL) JA03VA is one of two aircraft in Vanilla Air's fleet with a non-standard white livery. When the first AirAsia Japan (Mk I) was re-launched as Vanilla Air, they did not have enough time to fully paint the aircraft before they needed it. Their original three A320s still retain the basic AirAsia interior. (Photo: Aviation Wire)

Tickets went on sale on May 26th. One-way fares start from 4,590 JPY for a ticket with no baggage allowance (Simple Vanilla) and 6,590 JPY for an inclusive ticket with 20 kilograms of baggage allowance plus free seat selection (Komi-komi Vanilla).

Flight Schedule:
Naha – Taipei/Taoyuan NEW daily with A320-200.
JW189 OKA 2110 – 2145 TPE 32A/320 Mo/Tu/Th/Fr/Sa/Su *From Sep/15.
JW189 OKA 2035 – 2110 TPE 32A/320 We *From Sep/14.
JW180 TPE 0610 – 0845 OKA 32A/320 Daily *From Sep/15.

The aircraft for the outbound service will arrive from Narita into Naha flying the newly added flight, and then hop to Taipei, to turn around for their Osaka/Kansai [KIX/RJBB] link, which was only launched on April 27th (Vanilla Air adds Kansai – Taipei, plans SE Asia in 4Q2016.). The inbound leg will be part of the Kansai – Taipei – Naha – Narita routing.

Naha becomes Vanilla Air's third destination from Taipei, and it is part of their strategy to make the Taiwanese capital a scissors hub to connect Japan and Southeast Asia (Vanilla Air eyes China, Southeast Asia, and Okinawa hub.), which is similar to what part-sister Peach hopes to do at Naha (Peach launches Naha hub; but Naha – Ishigaki axed.). From Taipei, it currently flies to Narita four times daily, and plans are underway to add Singapore, Thailand, and Vietnam using fifth freedom rights, as well as Sapporo/New Chitose [CTS/RJCC].

Bangkok/Don Mueang [DMK/VTBD] is likely to become their first destination in Southeast Asia, and Vanilla is reportedly in talks with fellow Value Alliance (Vanilla Air joins seven LCCs to form Value Alliance.) member Nok Airlines (d.b.a. Nok Air) [DD/NOK] for a stronger partnership.

Source: Vanilla Air, 2016 May 25th. (in Japanese)

Vanilla Air joins seven LCCs to form Value Alliance.

On May 16th, Vanilla Air [JW/VNL], together with LCCs Cebu Air (d.b.a. Cebu Pacific) [5J/CEB] including subsidiary Cebgo [DG/SRQ], Jeju Air [7C/JJA], Nok Airlines (d.b.a. Nok Air) [DD/NOK], NokScoot Airlines [XW/NCT], Scoot [TZ/SCO], Tiger Airways Australia (d.b.a. Tigerair Australia) [TT/TGW], and Tiger Airways Singapore (d.b.a. Tigerair) [TR/TGW], announced the creation of Value Alliance. The founding members currently operate a collective fleet of 176 aircraft across the Asia Pacific region and serve over 160 destinations, carrying 47 million passengers in 2015.

Airbus A320-214(SL) JA07VA arrives at Narita. Vanilla Air took delivery of its ninth A320 on April 22nd and will receive two more during FY2016, with its fleet planned to reach 25 by FY2020. New President Katsuya Goto has mentioned the possibility of the A321neoLR, which would allow non-stop flights from Japan to Southeast Asia. (Photo: Ryosuke Yano)

The partnership enables customers to book flights from any of the eight airlines' websites in a single transaction through technology developed by Air Black Box (ABB). Travelers will also be able to choose ancillary services including seat selection, meals, and check-in baggage for flights from different airlines in a single itinerary. ABB’s Air Connection Engine (ACE) platform has filed for NDC Certification with IATA and is expected to complete full certification soon.

However, the cooperation will be limited to enhancing sales and ticket distribution among members, at least initially, unlike the comprehensive alliances of legacy carriers such as Oneworld, Skyteam, and Star, which go far as offering mileage transfers, joint marketing, standardizing service and quality, and coordinating schedules and sharing revenues where anti-trust immunity (ATI) has been granted. At this time, Value seems to be largely an experiment to better compete with the likes of LCC groups AirAsia and Jetstar, and to a lesser extent Lion Air, which have gained network scale by having subsidiaries in multiple nations and marketing them under a single brand and website.

Value becomes only the second LCC grouping of its kind after U-FLY Alliance, which was formed in January and includes Hong Kong Express Airways (d.b.a. HK Express) [UO/HKE], Lucky Air [8L/LKE], Urumqi Air [UQ/CUH], and West Airlines (d.b.a. West Air) [PN/CHB], all HNA Group carriers. Both alliances are keen to court more members, though there are not many remaining in the region. VietJet Aviation [VJ/VJC] will likely go alone, with a strong and growing domestic home market along with a healthy aircraft orderbook. Also, the government, which controls Vietnam Airlines [VN/HVN] and indirectly owns Jetstar Pacific Airlines [BL/PIC], may not be comfortable in allowing them to forge international partnerships for now.

On another note, the exclusion of Tigerair Taiwan [IT/TTW] from Value is a further hint that its majority owner China Airlines [CI/CAL] is planning to buy Tigerair's 10% shareholding to take full control, which would likely result in the LCC re-branding and moving to a different reservations system. Also, Tigerair Taiwan competes with Scoot in the Taiwan – Singapore and Taiwan – Japan markets and with NokScoot in the Taiwan – Thailand market. However, some competition within the alliance seems inevitable as Vanilla prepares to launch Southeast Asia from a new Taipei/Taoyuan [TPE/RCTP] hub by year-end (Vanilla Air adds Kansai – Taipei, plans SE Asia in 4Q2016.).

Source: Vanilla Air, 2016 May 16th. (in Japanese)

New AirAsia Japan launch slips to 4Q2016 at earliest.

AirAsia Japan (Mk II) [DJ] has officially admitted that they will miss its target launch in Summer 2016 (New AirAsia Japan reveals China, SE Asia, USA ambitions.), and a new date has yet to be set. "Additional time is necessary to ensure the safety of operations," revealed a company spokesperson on May 11th to local media outlets in Nagoya, adding "At this time we are unable to confirm our launch date." This becomes the third delay for the reincarnation of AirAsia's Japanese unit (New AirAsia Japan delays service entry to July 2016.).

Airbus A320-216(SL) JA02DJ/F-WWBO (msn 6972) lands at wet Toulouse after a test flight. It was delivered on April 27th and arrived at Chubu Centrair on May 5th. AirAsia Japan will commence operations with two aircraft. (Photo: Tobias Gudat)

Japan's fifth LCC in five years, AirAsia Japan (Mk II) took delivery of its second Airbus A320 on April 27th, and hiring ground-handling staff at Sapporo/New Chitose [CTS/RJCC] and Sendai [SDJ/RJSS] has been completed. However, the airline reportedly still lacks the adequate number of pilots, maintenance personnel, and operations control staff required by regulator Japan Civil Aviation Bureau (JCAB). Demand for trained aviation professionals is high due to the rapid growth of LCCs and AirAsia Japan (Mk II) may be having difficulty recruiting. It received an Air Operator's Certificate (AOC) in October last year (New AirAsia Japan receives AOC; takeoff in April 2016.), but has yet to pass inspections in maintenance and operations preparedness.

The latest delay pushes back its in-service date to October at earliest, and that is if actual flight training starts by June and JCAB checks including proving flights could be commenced by August. Training flights have yet to begin, and its two aircraft remain grounded at Nagoya/Chubu Centrair [NGO/RJGG] apart from a few sporadic flights to keep them airworthy. The later their launch, the more its competitors would become established in the market. AirAsia Japan (Mk II) had selected Chubu Centrair as there were no LCCs based at the airport serving the nation's third largest metropolitan area at that time (AirAsia Japan selects Nagoya Chubu Centrair.), however, now Jetstar Japan [GK/JJP] (Jetstar Japan starts Nagoya and Kansai to Manila.) and Spring Airlines [9C/CQH] among other LCCs are building up their networks.

Meanwhile, Chubu Centrair has decided to go ahead to build its LCC Terminal, which was planned but shelved when the first AirAsia Japan (Mk I) [JW/WAJ] suspended operations (CoachFlyer JW8541: NRT - FUK on AirAsia Japan's Airbus A320.). They will confirm its design and begin construction in FY2017, with completion slated for summer 2019. Jetstar Japan and Spring Airlines are also considering moving into the new terminal. The airport believes capacity at Tokyo/Haneda [HND/RJTT] and Tokyo/Narita [NRT/RJAA] is not large enough to absorb the increased demand during the 2020 Tokyo Olympics/Paralympics.

Source: Nikkei Shimbun, 2016 April 1st. (in Japanese)
Source: Aviation Wire, 2016 May 6th. (in Japanese)
Source: Travel Vision, 2016 May 12th. (in Japanese)
Source: Traicy, 2016 May 12th. (in Japanese) 

Vanilla Air adds Kansai – Taipei, plans SE Asia in 4Q2016.

On April 27th, Vanilla Air [JW/VNL] inaugurated Osaka/Kansai [KIX/RJBB] – Taipei/Taoyuan [TPE/RCTP] (Vanilla Air announces Kansai – Taipei.). The new daily red-eye service is actually a spoke from Taiwan's capital, making Osaka's premier gateway the fledgling LCCs fourth destination in Japan, but the first not linking with their hub at Tokyo/Narita [NRT/RJAA]. All flights are operated by 180-seat Airbus A320-200s.

Airbus A320-214(SL) JA05VA at Kansai waiting for her inaugural outbound flight to Taipei. Vanilla Air received its ninth A320 on April 22nd, and will receive two more during FY2016. The three aircraft are leased from BOC Aviation to ANA, which sub-leases them to Vanilla. Its fleet is projected to reach 25 by FY2020. (Photo: Aviation Wire)

The aircraft for Taipei – Kansai arrives into Taipei as the last flight of the day from Narita just past midnight, and turns around for the inbound flight to Kansai. After a brief 60-minute stay, it departs for Taipei as the outbound flight from Kansai, in time for the first flight of the day from Taipei back to Narita. One-way fares start from 6,490 JPY for a ticket with no baggage allowance (Simple Vanilla) and 9,490 JPY for an inclusive ticket with 20 kilograms of baggage allowance plus free seat selection (Komi-komi Vanilla).

Flight Schedule:
Kansai – Taipei/Taoyuan NEW daily with A320-200.
JW178 TPE 2150 – 0135(+1) KIX 32A/320 Daily *Apr/27 - Sep/13.
JW178 TPE 2235 – 0220(+1) KIX 32A/320 Daily *Sep/13 - Oct/29.
JW179 KIX 0235 – 0430 TPE 32A/320 Daily *Apr/28 - Sep/14.
JW179 KIX 0315 – 0510 TPE 32A/320 Daily *Sep/14 - Oct/30.

Maiden inbound flight JW178 departed Taipei at 2145 CST, five minutes before published time, with a load of 114 passengers, and arrived at Kansai at 0112 JST, 23 minutes before schedule, on April 28th. Meanwhile, the first outbound flight JW179 blocked out from Kansai at 0233 JST, two minutes early, carrying 120 passengers, and arrived at Taoyuan Airport at 0440 CST, 10 minutes behind schedule. A320-214(SL) JA05VA was assigned to both flights.

A second round-trip is already being considered, which would put them in direct competition against part-sister Peach Aviation [MM/APJ]. Kansai – Taipei now boasts LCCs Jetstar Asia Airways [3K/JSA], Jetstar Japan [GK/JJP] (Jetstar Japan adds Nagoya and Kansai to Taipei.), homegrown Peach, Tigerair Taiwan [IT/TTW], and V Air [ZV/VAX], alongside legacy carriers Cathay Pacific Airways [CX/CPA], China Airlines [CI/CAL], EVA Air [BR/EVA], Japan Airlines [JL/JAL], and TransAsia Airways [GE/TNA]. Philippine Airlines [PR/PAL] is preparing to enter on June 25th as the 12th airline, making it the route with the most carriers in the world.

Vanilla Air has opened a reservations center in Taipei, and the new service is part of their strategy to make Taoyuan Airport its second hub, and their first outside Japan (Vanilla Air eyes China, Southeast Asia, and Okinawa hub.). From Taipei, it currently flies to Narita four times daily, and plans are underway to add Singapore, Thailand, and Vietnam using fifth freedom rights, as well as Sapporo/New Chitose [CTS/RJCC]. "We hope to launch our first city in Southeast Asia by year-end. We've already decided which city, but we can't disclose that yet," said Katsuya Goto, Vanilla's new President from April 1st. It will coincide with the delivery of their 10th A320 this autumn.

"Together with Kaohsiung (Vanilla Air launches Kaohsiung but slows expansion.), the Taiwan market generates roughly 50-60% of our revenue, and 70-80% of our customers are Taiwanese," said Chairman Tomonori Ishii, who was promoted from President effective April 1st, adding "So Taiwan-originating travelers will probably make up most of our customer base for our first flights to Southeast Asia, but as we grow our network, we believe the Japanese will come along as well." In preparation for their Taipei hub, Vanilla has started offering a fly-through product, for now only available through Narita, which guarantees connections between their flights. An interline agreement with a LCC in Southeast Asia is also being considered.

The Narita-based LCC is expected to announce its first full-year profit for FY2015, which ended on March 31st. Vanilla Air is a wholly-owned subsidiary of ANA Holdings, parent of All Nippon Airways [NH/ANA].

Source: Toyo Keizai, 2016 April 9th. (in Japanese)
Source: Nikkei Business, 2016 April 15th. (in Japanese)
Source: Traicy, 2016 April 28th. (in Japanese)
Source: Aviation Wire, 2016 April 28th. (in Japanese)
Source: MyNavi, 2016 April 28th. (in Japanese)

Jetstar Japan starts Nagoya and Kansai to Manila.

Jetstar Japan [GK/JJP] commenced Nagoya/Chubu Centrair [NGO/RJGG] – Manila/Ninoy Aquino [MNL/RPLL] on April 1st, followed by Osaka/Kansai [KIX/RJBB] – Manila on April 7th (Jetstar Japan reveals Manila, downsizes Kumamoto.). Japan's now largest LCC had only added the Filipino capital on March 15th with service from Tokyo/Narita [NRT/RJAA] (Jetstar Japan launches Narita – Manila.). All flights are operated by 180-seat Airbus A320-200s.

Airbus A320-232(SL) JA12JJ prepares for another flight at Narita. Jetstar Japan has capped its fleet at 20 since December 2014 and growth has been achieved by increasing aircraft utilization. (Photo: Ryosuke Yano)

Chubu Centrair – Manila started with four weekly flights, which increases to seven weekly during peak travel periods. Kansai – Manila launched with up to four times weekly, however, sister Jetstar Asia Airways [3K/JSA] already operates three times weekly on the Kansai – Manila route, and together the Jetstar Group will offer up to seven-times-weekly service. Along with Jetstar Airways [JQ/JST], the three carriers had received antitrust immunity from Japanese authorities to coordinate schedules and prices on routes between Japan and Taiwan and the Philippines last October.

The inaugural flight from Chubu Centrair on April 1st departed at 2047 JST, 17 minutes behind schedule, with a load of 179 passengers, including five children. A320-232(SL) JA11JJ was assigned. Meanwhile, the first revenue flight from Kansai on April 7th departed at 2048 JST, 18 minutes behind schedule, carrying 169 passengers. It was operated by A320-232 JA04JJ.

Flight Schedule:
Chubu Centrair – Manila/Ninoy Aquino NEW up to daily with A320-200.
GK095 NGO 2030 – 2335 MNL 32A/320 Fr/Sa/Su *Apr/1-3.
GK095 NGO 2030 – 2335 MNL 32A/320 Mo/Fr/Sa/Su *Apr/4-28, May/9-31.
GK095 NGO 2030 – 2335 MNL 32A/320 Daily *Apr/29-May/8, Jun/1-30.
GK094 MNL 0105 – 0555 NGO 32A/320 Mo/Sa/Su *Apr/2-4.
GK094 MNL 0105 – 0555 NGO 32A/320 Mo/Fr/Sa/Su *Apr/5-29, May/10-Jun/1.
GK094 MNL 0105 – 0555 NGO 32A/320 Daily *Apr/30-May/9, Jun/2-Jul/1.

Kansai – Manila/Ninoy Aquino NEW up to 4 weekly with A320-200.
GK081 KIX 2030 – 2335 MNL 32A/320 Tu/We/Th/Fr *Apr/7-28, Jun/1-30.
GK081 KIX 2030 – 2335 MNL 32A/320 Tu/Th *Apr/29-May/31.
GK080 MNL 0035 – 0530 KIX 32A/320 We/Th/Fr/Sa *Apr/8-29, Jun/2-Jul/1.
GK080 MNL 0035 – 0530 KIX 32A/320 We/Fr *Apr/30-Jun/1.

"Manila is an important city as we expand internationally," said Chairman Masaru Kataoka at Chubu Centrair on the inaugural day, adding "The Chubu (Greater Nagoya) region's Filipino population is big, and there is significant demand for VFR (Visiting Friends and Relatives) travel, something we LCCs are good at catering to and expanding." Mr. Kataoka also said "It may not be common to see airlines launching a destination with three routes at the same time, but that would enable us to leverage synergies and we have a single strategy for the three routes altogether."

Manila becomes Jetstar Japan's second overseas destination from Chubu Centrair after Taipei/Taoyuan [TPE/RCTP] (Jetstar Japan adds Nagoya and Kansai to Taipei.), and the third from Kansai after Hong Kong [HKG/VHHH] (Jetstar Japan goes international with Kansai – Hong Kong.) and Taipei. Chubu Centrair – Manila sees Cebu Air [5J/CEB] (d.b.a. Cebu Pacific Air) flying four times weekly and Philippine Airlines [PR/PAL] daily, while Kansai – Manila has Cebu Pacific operating five times weekly, Jetstar Asia three times weekly, and Philippine Airlines daily. Zest Airways [Z2/EZD] (d.b.a. Philippines AirAsia) is preparing to enter the Philippines – Japan market during the second half of this year.

Source: Travel Watch, 2016 April 1st. (in Japanese)
Source: Chunichi Shimbun, 2016 April 2nd. (in Japanese)
Source: Flight Liner, 2016 April 8th. (in Japanese)

Jetstar Japan launches Narita – Manila.

On March 15th, Jetstar Japan [GK/JJP] added Manila/Ninoy Aquino [MNL/RPLL] with initial service from its Tokyo/Narita [NRT/RJAA] hub (Jetstar Japan reveals Manila, downsizes Kumamoto.), making the Filipino capital their third international destination after Hong Kong [HKG/VHHH] (Jetstar Japan goes international with Kansai – Hong Kong.) and Taipei/Taoyuan [TPE/RCTP] (Jetstar Japan launches Taipei, next up Manila.). All flights are operated by 180-seat Airbus A320-200s. They became the first Japanese budget carrier to serve the Philippines.

Airbus A320-232(SL) JA15JJ departs for Jetstar Japan's maiden flight to the Philippines. Its fleet has been capped at 20 since December 2014 and growth has been achieved by increasing aircraft utilization, which is expected to approach maximum when frequency on the three new routes to Manila are increased. (Photo: Aviation Wire)

The inaugural outbound flight GK041 was operated by A320-232(SL) JA15JJ, which departed Narita at 2039 JST, 34 minutes behind schedule. It arrived at Manila past midnight at 0012 PHT, just seven minutes behind published time. The three-times-weekly service will be up-gauged to up to daily from April 29th. "Filipinos account for the third largest expatriate population in Japan. There's a huge opportunity there," said CEO Gerry Turner, revealing booking rates for March are exceeding 90%.

Flight Schedule:
Narita – Manila/Ninoy Aquino NEW up to daily with A320-200.
GK041 NRT 2005 – 0005(+1) MNL 32A/320 Tu/Th/Sa *Mar/15-19.
GK041 NRT 2005 – 0005(+1) MNL 32A/320 Mo/Tu/We/Th/Sa *Mar/20-26.
GK041 NRT 2010 – 0010(+1) MNL 32A/320 Fr *Mar/20-26.
GK041 NRT 2030 – 0005(+1) MNL 32A/320 Tu/Th/Fr/Sa/Su *Mar/27-Apr/3.
GK041 NRT 2030 – 0005(+1) MNL 32A/320 Tu/We/Th/Fr/Sa/Su *Apr/4-28.
GK041 NRT 2030 – 0005(+1) MNL 32A/320 Daily *Apr/29-May/8, Jun/1-30.
GK041 NRT 2030 – 0005(+1) MNL 32A/320 Tu/Th/Fr/Sa/Su *May/9-31.
GK040 MNL 0105 – 0615 NRT 32A/320 We/Fr/Su *Mar/16-20.
GK040 MNL 0105 – 0615 NRT 32A/320 Tu/We/Th/Fr/Sa/Su *Mar/21-27.
GK040 MNL 0105 – 0635 NRT 32A/320 Mo *Mar/28.
GK040 MNL 0105 – 0635 NRT 32A/320 We/Fr *Mar/29-Apr/4.
GK040 MNL 0105 – 0635 NRT 32A/320 We/Th *Apr/5-29.
GK040 MNL 0105 – 0635 NRT 32A/320 We *May/10-Jun/10.
GK040 MNL 0035 – 0605 NRT 32A/320 Mo/Sa/Su *Mar/29-Apr/4.
GK040 MNL 0035 – 0605 NRT 32A/320 Mo/Tu/Sa/Su *Apr/5-29.
GK040 MNL 0035 – 0605 NRT 32A/320 Daily *Apr/30-May/9.
GK040 MNL 0035 – 0605 NRT 32A/320 Mo/Tu/Sa/Su *May/10-Jun/1.
GK040 MNL 0035 – 0605 NRT 32A/320 Daily *Jun/2-Jul/1.

All flights are timed to leave Japan in the evening, arriving in the Philippines past midnight, and make a red-eye departure for an early-morning return back to Japan. This helps to increase aircraft utilization, as Narita has a curfew between 2300 and 0600 JST and most other domestic airports are also closed during midnight hours. Narita – Manila is currently served by All Nippon Airways [NH/ANA] daily, Cebu Air [5J/CEB] (d.b.a. Cebu Pacific Air) daily, Japan Airlines [JL/JAL] twice daily, Delta Air Lines [DL/DAL] daily, and Philippine Airlines [PR/PAL] twice daily.

Jetstar Japan will also link Manila with Nagoya/Chubu Centrair [NGO/RJGG] starting on April 1st and Osaka/Kansai [KIX/RJBB] on April 7th. Last October, Jetstar Airways [JQ/JST], Jetstar Asia Airways [3K/JSA], and Jetstar Japan had received antitrust immunity to coordinate flight times and prices on international routes to and from Japan to Taiwan and the Philippines. The Singapore/Changi [SIN/WSSS]-based sister's existing Kansai – Taipei and Kansai – Manila services are included in the scheme.

According to Qantas Airways' [QF/QFA] earnings report released on February 23rd, Jetstar Japan's EBIT for the second half of 2015 was in the black, making it the first time the Narita-based LCC recorded a profit since starting operations in July 2012. Their system-wide load factor for the same period also increased to 84% compared to 75% one year ago. Mr. Turner attributes the turnaround to its second hub at curfew-free Kansai (Jetstar Japan launches Kansai hub.), new international flights, and lower fuel costs. For FY2014 ending in June 2015, it had posted a 7.9 billion JPY loss and its two major shareholders Japan Airlines [JL/JAL] and Qantas together injected 7 billion JPY in November 2014 and another 4 billion JPY in June 2015.

Source: Asahi Shimbun, 2016 February 25th. (in Japanese)
Source: Asahi Shimbun, 2016 February 25th. (in Japanese)
Source: Aviation Wire, 2016 February 25th. (in Japanese)
Source: Aviation Wire, 2016 March 16th. (in Japanese)

Vanilla Air announces Kansai – Taipei.

On March 14th, Vanilla Air [JW/VNL] revealed that it will launch Osaka/Kansai [KIX/RJBB] – Taipei/Taoyuan [TPE/RCTP] on April 27th, making it just in time for Japan's Golden Week peak travel period (Vanilla Air to add Kansai – Taipei in Summer 2016.). The new service will be operated daily using 180-seat Airbus A320-200s. Kansai becomes the fledgling LCCs fourth destination in Japan, but the first not linking with Tokyo/Narita [NRT/RJAA], where it is based and all flights currently depart from.

Airbus A320-216(SL) JA01VA rotates from Amami bound for Narita. Vanilla Air will take delivery of their ninth A320 in April followed by the 10th in autumn. It plans to add up to five during FY2016 and build its fleet to 25 by FY2020. (Photo: Aviation Wire)

The aircraft for Taipei – Kansai arrives into Taiwan's largest city as the last flight of the day from Narita just past midnight, and turns around for the red-eye inbound flight to Kansai. After a brief 60-minute stay, it departs for Taipei as the outbound flight from Kansai, in time for the first flight of the day from Taipei back to Narita. Tickets went on sale on March 15th at 1400 JST with one-way fares starting from 6,490 JPY.

Flight Schedule:
Kansai – Taipei/Taoyuan NEW daily with A320-200.
JW178 TPE 2150 – 0135(+1) KIX 32A/320 Daily *Apr/27 - Sep/13.
JW178 TPE 2235 – 0220(+1) KIX 32A/320 Daily *Sep/13 - Oct/29.
JW179 KIX 0235 – 0430 TPE 32A/320 Daily *Apr/28 - Sep/14.
JW179 KIX 0315 – 0510 TPE 32A/320 Daily *Sep/14 - Oct/30.

This schedule is similar to how part-sister Peach Aviation [MM/APJ] flies into Tokyo/Haneda [HND/RJTT] from Seoul/Incheon [ICN/RKSI] (Peach Aviation starts Haneda – Seoul.) and Taipei (Peach Aviation inaugurates Haneda – Taipei.). However, it is ironic that Peach does it to access Haneda, where only midnight international slots are available, while Vanilla will do it to get around the curfew it endures at Narita and increase aircraft utilization.

Vanilla is expected to report its first full-year profit of an estimated 1.5 billion JPY for FY2015 ending on March 31st. In January, parent ANA Holdings had publicly announced that it would have its wholly-owned LCC arm build hubs at Okinawa/Naha [OKA/ROAH] and Taipei (Vanilla Air eyes China, Southeast Asia, and Okinawa hub.). Vanilla has already opened a reservations center in Taipei, and hopes to add flights to Philippines, Singapore, Thailand, and Vietnam by 2020 using fifth freedom rights, effectively making the Taiwanese capital a transfer hub with strong local demand as well.

Japan – Taiwan is a booming market with a plethora of LCCs alongside full-service airlines operating, but also now highly-competitive, with Kansai – Taipei soon to become the route with the most carriers in the world with a dozen airlines. Current LCCs include Jetstar Asia Airways [3K/JSA], Jetstar Japan [GK/JJP] (Jetstar Japan adds Nagoya and Kansai to Taipei.), homegrown Peach, Tigerair Taiwan [IT/TTW], and V Air [ZV/VAX], while legacy carriers include Cathay Pacific Airways [CX/CPA], China Airlines [CI/CAL], EVA Air [BR/EVA], Japan Airlines [JL/JAL], and TransAsia Airways [GE/TNA], with Philippine Airlines [PR/PAL] posed to enter from June 25th.

Source: Nikkei Business, 2016 March 10th. (in Japanese)
Source: Vanilla Air, 2016 March 14th. (in Japanese)

Peach Aviation commences Okinawa – Narita.

On February 20th, Peach Aviation [MM/APJ] launched Okinawa/Naha [OKA/ROAH] – Tokyo/Narita [NRT/RJAA] (Peach Aviation grows Okinawa; Narita and more Taipei.). It initially started out with an evening round-trip flying three times weekly, operating on Mondays, Thursdays, and Saturdays, due to limited availability of favorable slot times at Narita, but will be up-gauged to daytime hours and go daily from March 27th, the beginning of the Summer 2016 schedule. 180-seat Airbus A320s are assigned.

Airbus A320-214 JA803P departs Peach's second hub at Naha. It plans a modest fleet of 20 by October 2017 with a third hub at Narita and a fourth in Sendai. (Photo: Aviation Wire)

Inaugural flight MM508 departed Naha at 1617 JST, 17 minutes behind schedule, with a load of 168 passengers (including one infant), four flight attendants, and two pilots, and arrived at Narita at 1815, 10 minutes before the published time. A320-214 JA803P operated both legs.

Flight Schedule:
MM504 OKA 1100 – 1340 NRT 320 Daily *From Mar/27.
MM508 OKA 1600 – 1825 NRT 320 Mo/Th/Sa *Feb/20 - Mar/26.
MM505 NRT 1425 – 1715 OKA 320 Daily *From Mar/27.
MM509 NRT 1900 – 2215 OKA 320 Mo/Th/Sa *Feb/20 - Mar/26.

The Ryukyu capital became the growing LCC's fourth destination from Narita, after Fukuoka [FUK/RJFF], Osaka/Kansai [KIX/RJBB], and Sapporo/New Chitose [CTS/RJCC] (Peach starts Narita to Fukuoka and Sapporo.), and the sixth overall from the Tokyo region, as it serves Seoul/Incheon [ICN/RKSI] (Peach Aviation starts Haneda – Seoul.) and Taipei/Taoyuan [TPE/RCTP] (Peach Aviation inaugurates Haneda – Taipei.) from Tokyo/Haneda [HND/RJTT] using midnight slots. Meanwhile, Narita is the sixth city from their Naha hub, which already sees service to Fukuoka, Hong Kong [HKG/VHHH], Kansai, Seoul (Peach Aviation starts Okinawa – Seoul.), and Taipei.

The Naha – Narita route currently has three other airlines operating; All Nippon Airways [NH/ANA], subsidiary of Peach's 38.67% shareholder ANA Holdings, mainly feeds its international flights, while Jetstar Japan [GK/JJP] and Vanilla Air [JW/VNL], ANA's wholly-owned LCC arm, compete with Peach. Japan Airlines [JL/JAL] withdrew from the route in October 2014 and instead code-shares with 33% subsidiary Jetstar Japan to feed its international flights (JAL to terminate Narita – Okinawa.).

One year ago, Peach had publicly stated that Narita would become its third hub after Kansai and Naha (Peach confirms Narita hub; adds Fukuoka and Sapporo.), however, CEO Shinichi Inoue has admitted that it could be delayed due to the unavailability of favorable slot times, and hubbing Sendai [SDJ/RJSS] may end up coming before (Peach plans Sendai hub by Summer 2017.). Meanwhile, Mr. Inoue is eager to add more midnight international flights from Haneda, with Hong Kong being the most likely candidate. Peach does not have any access to daytime slots, hence a split operation for Tokyo.

Source: Aviation Wire, 2016 February 20th. (in Japanese)

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.

Spring Airlines Japan launches Wuhan and Chongqing.

On February 13th, Spring Airlines Japan [IJ/SJO] launched its first international service from Tokyo/Narita [NRT/RJAA] to Wuhan [WUH/ZHHH], followed by Chongqing [CKG/ZUCK] the following day on February 14th. Thus, the affiliate of Spring Airlines [9C/CQH] became the first Japanese LCC to serve mainland China. Regulator Japan Civil Aviation Bureau (JCAB) had granted the fledgling airline approval to operate international routes on December 16th (Spring Airlines Japan granted approval to go international.). All flights are operated by 189-seat Boeing 737-800s.

Boeing 737-86N(WL) JA03GR rotates from Narita for her maiden flight to Wuhan. Spring Airlines Japan has so far capped its fleet at just three aircraft. (Photo: Aviation Wire)

Maiden international flight IJ1011 departed Narita at 1024 JST, four minutes behind schedule, with a load of 138 passengers including 11 infants. 737-86N(WL) JA03GR was assigned. Wuhan started with a three-times-weekly frequency, operating on Mondays, Wednesdays, and Saturdays, while Chongqing runs four times a week on Tuesdays, Thursdays, Fridays, and Sundays. Both round-trips are timed to depart Narita in the morning for an afternoon arrival into the Chinese cities and an evening return to Japan.

Flight Schedule:
Narita – Wuhan NEW 3 weekly with B737-800.
IJ1011 NRT 1020 – 1415 WUH 73H Mo/We/Sa
IJ1012 WUH 1515 – 1940 NRT 73H Mo/We/Sa

Narita – Chongqing NEW 4 weekly with B737-800.
IJ1021 NRT 0900 – 1415 CKG 73H Tu/Th/Fr/Su
IJ1022 CKG 1515 – 2025 NRT 73H Tu/Th/Fr/Su

"As a group, we are looking forward to bringing more Chinese tourists to Japan, and hopefully more Japanese to China as well," said Wang Zhenghua, Chairman of Spring Airlines Group, while the Japanese affiliate's President Hiroshi Ukai enthused "This is our first step to build our international network. We will be adding many more destinations from Narita to China." Lanzhou [LHW/ZLLL] has been mentioned as the possible next city, while Osaka/Kansai [KIX/RJBB] and Sapporo/New Chitose [CTS/RJCC] have been evaluated as the next domestic destinations (Spring Airlines Japan plans Kansai, Sapporo, and China.).

Having commenced operations in August 2014 (Spring Airlines Japan commences operations.), Spring Airlines Japan was founded given the specific mission to connect Chinese cities with the main international airport serving Tokyo, which would be difficult for its Chinese parent to accomplish due to restrictions and politics that protect government-owned Air China [CA/CCA], China Eastern Airlines [MU/CES], and China Southern Airlines [CZ/CSN]. For example, Narita – Chongqing already had Air China operating daily, while Narita – Wuhan sees twice-weekly China Southern service, so approval to enter the markets by Spring Airlines would not have come easy, and Spring Airlines Japan is the group's answer to get around with it.

Peer LCCs Jetstar Japan [GK/JJP], Peach Aviation [MM/APJ], and Vanilla Air [JW/VNL], have all omitted the Chinese market so far, due to them having small or no brand recognition in China, a higher cost base than its Chinese counterparts, and political tensions, though now to a lesser extent. Peach has mulled Shanghai for some time but has remained quiet, while Vanilla Air only recently announced its commitment to China (Vanilla Air eyes China, Southeast Asia, and Okinawa hub.). Being able to take advantage of its parent's brand awareness as well as the group's distribution channels puts Spring Airlines Japan in the best position among Japanese LCCs to serve the booming China – Japan market. While there are still more Japanese visiting China than Chinese traveling to Japan, the latter is fast increasing while the former is declining.

In other news, in December 2015, Japanese electronics retailer Bic Camera and housing firm Sekisui House announced plans to acquire stakes in Spring Airlines Japan. The former has invested 1 billion JPY to control 6% of the LCC's voting shares, and will have the airline promote its products and hand out discount vouchers eligible for use at its stores. Additionally, it may also be allocated seats for promotions. Meanwhile, the latter is looking to invest 3 billion JPY for an 18% share by the end of March. Japan's largest housing company is looking to partner with the Spring Airlines Group in opening a chain of budget hotels in Japan under the brand Spring Sunny Hotel. It would be a joint-venture (JV) between the LCC group and a Japanese real estate management company Sun Frontier Fudousan.

Source: Nikkei Shimbun, 2015 December 22nd. (in Japanese)
Source: Aviation Wire, 2015 December 22nd. (in Japanese)
Source: Nikkei Shimbun, 2015 December 23rd. (in Japanese)
Source: Aviation Wire, 2016 February 13rd. (in Japanese)

New AirAsia Japan delays service entry to July 2016.

On February 10th, AirAsia Japan (Mk II) [DJ] officially admitted that it would be unable to meet its target operations launch in April 2016 (New AirAsia Japan receives AOC; takeoff in April 2016.). The company explained it was due to "a number of factors." This becomes the second delay (AirAsia admits Skymark bid defeat, Japan unit delay to 2016.), and they will now work to start flying in July, which would put it more than one year behind their original time schedule (New AirAsia Japan takeoff slipping to Summer 2016?).

Airbus A320-216(SL) JA02DJ/F-WWBO (msn 6972), AirAsia Japan's second aircraft, will be delivered in late February, though its first A320 has yet to fly since delivery last October. A special livery designed by Mika Ninagawa was planned for the second example, but seems to have been postponed to a later airframe. Flight training was originally slated to begin in November last year, but is now planned by March. (Photo: Tobias Gudat)

Japan's fifth LCC had already been set back with a 10-month delay (AirAsia Japan is officially reborn; first flight June 2015.), largely due to shifting strategy to focus more on the international market rather than domestic, difficulties in recruiting pilots and setting up a maintenance scheme, and much-longer-than-anticipated preparation to apply for an Air Operator's Certificate (AOC). It finally obtained one on October 6th, 2015 and announced that it would launch in April with flights from Nagoya/Chubu Centrair [NGO/RJGG] to Sapporo/New Chitose [CTS/RJCC], Sendai [SDJ/RJSS], and Taipei/Taoyuan [TPE/RCTP] (New AirAsia Japan receives AOC; takeoff in April 2016.). However, until now their first Airbus A320 has not flown once since delivery four months ago (New AirAsia Japan receives first Airbus A320.).

Dissatisfied with slow progress, effective December 1st, the LCC group replaced CEO Yoshinori Odagiri, formerly a veteran from All Nippon Airways [NH/ANA] who also headed the first AirAsia Japan (Mk I) [JW/WAJ], with ex-Skymark Airlines' [BC/SKY] Chairman Takashi Ide and President Masakazu Arimori in a surprise move (Skymark relaunched with ANA sponsorship.). Mr. Ide was made AirAsia Japan's Chairman while Mr. Arimori took the place of CFO, while ex-Dell Osamu Hata was promoted to CEO (AirAsia Japan CEO to quit, ex-Skymark executives coming.). However, it must be noted that Skymark and AirAsia Japan are different; the former has been a domestic player centered around its precious slots at Tokyo/Haneda [HND/RJTT], while the latter is based at Chubu Centrair with at least 55% of its capacity to be international.

Nonetheless, the Skymark duo have wide and deep knowledge of the domestic market and expertise in running a low-cost operation in Japan's unique economic and regulatory environment. And, the hidden agenda may be that, they along with management at AirAsia have not given up on eventually merging AirAsia Japan and Skymark, which has so far been politically impossible (Is AirAsia considering a Skymark takeover?) (ANA and AirAsia bid to save Skymark.). Skymark's new President Nobuo Sayama still maintains close relations with the duo, and Skymark's new owners Integral Corporation and ANA Holdings have agreed to re-list the airline by 2020. Meanwhile, the government has hinted liberalizing Haneda to a significant extent sometime, but not long, after the 2020 Tokyo Olympics/Paralympics, and AirAsia and Skymark may be quietly waiting for the appropriate time.

With the latest postponement, some media have voiced concerns over whether AirAsia Japan could really take off. However, though it may be delayed, the Japanese unit of Asia's largest LCC has so much potential it could realize and Tony Fernandes is probably serious about it. Aside from Spring Airlines Japan [IJ/SJO], AirAsia Japan is best placed among Japanese LCCs to tap into China, the single largest (and still growing) source of inbound visitors to Japan, as it already has brand-awareness with AirAsia Group carriers serving 17 Chinese cities. Furthermore, sister carrier AirAsia X [D7/XAX] (and probably Thai AirAsia X [XJ/TAX] as well when Thailand's ICAO red flag is lifted and FAA rating is returned to Category 1) is venturing into the trans-Pacific market (starting with Honolulu [HNL/PHNL]) with a stop in Japan using fifth freedom rights, and if this proves successful, it could grow not only to provide a Japan – North America operation (which is a shrinking market), but a competitive one-stop China – North America (growing market) option.

Source: Nikkei Shimbun, 2016 February 10th (in Japanese) 
Source: Travel Vision, 2016 February 10th. (in Japanese)