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)

Spring Airlines Japan granted approval to go international.

On December 16th, Spring Airlines Japan [IJ/SJO] announced that it had received approval from regulator Japan Civil Aviation Bureau (JCAB) to launch international routes, paving way to commence Wuhan [WUH/ZHHH] and Chongqing [CKG/ZUCK] from their Tokyo/Narita [NRT/RJAA] hub on February 13th and 14th, respectively (Spring Airlines Japan files for Chongqing and Wuhan.).

Leased from GECAS, Boeing 737-86N(WL) JA02GR is one of only three aircraft in Spring Japan's tiny fleet. Initial plans to expand its fleet to 20 by 2017 have been delayed indefinitely. (Photo: Spring Airlines Japan)

Wuhan will start with a three-times-weekly service, operating on Mondays, Wednesdays, and Saturdays, while Chongqing will operate four times a week on Tuesdays, Thursdays, Fridays, and Sundays. Both routes are timed to depart Narita in the morning for an afternoon arrival into the Chinese cities and an evening return to Japan. 189-seat Boeing 737-800s will be assigned. Tickets will go on sale at a later date not yet disclosed.

Flight Schedule:
Narita – Wuhan NEW 3 weekly with B737-800.
IJ1011 NRT 1020 – 1415 WUH 73H Mo/We/Sa *From Feb/13.
IJ1012 WUH 1515 – 1940 NRT 73H Mo/We/Sa *From Feb/13.

Narita – Chongqing NEW 4 weekly with B737-800.
IJ1021 NRT 0900 – 1415 CKG 73H Tu/Th/Fr/Su *From Feb/14.
IJ1022 CKG 1515 – 2025 NRT 73H Tu/Th/Fr/Su *From Feb/14.

Parent Spring Airlines [9C/CQH] already connects the two Chinese cities with Osaka/Kansai [KIX/RJBB], while it also links Chongqing with Luoyang [LYA/ZHLY], Shanghai/Hongqiao [SHA/ZSSS], Shanghai/Pudong [PVG/ZSPD], Shenyang [SHE/ZYTX], Shenzhen [SZX/ZGSZ], and Shijiazhuang [SJW/ZBSJ]. It does not offer any domestic flights from Wuhan. Narita – Chongqing currently has Air China [CA/CCA] operating daily, while Narita – Wuhan sees a twice-weekly round-trip with China Southern Airlines [CZ/CSN] with All Nippon Airways [NH/ANA] slated to enter with a daily service on April 28th, 2016.

Chairman Wang Wei had disclosed over a year ago that the two cities would be their first overseas destinations (Spring Japan considering Chongqing and Wuhan.). The Japanese affiliate of China's largest LCC only started flying in August 2014 with three routes from Narita (Spring Airlines Japan commences operations.). However, Takamatsu [TAK/RJOT] was suspended in October (Spring Airlines Japan to drop Takamatsu.), leaving the fledgling carrier with just twice-daily Hiroshima [HIJ/RJOA] and daily Saga [HSG/RJFS] round-trips. That said, Spring Japan is not envisioned to become a major domestic player, but a vehicle of the Spring Airlines Group to better access the China – Tokyo market as well as carry Chinese travelers visiting multiple cities in Japan.

Source: Spring Airlines Japan, 2015 December 16th. (in Japanese)

Spring Airlines Japan files for Chongqing and Wuhan.

On November 4th, Spring Airlines Japan [IJ/SJO] announced that they had officially filed an application with the Japan Civil Aviation Bureau (JCAB) to launch its first international routes from Tokyo/Narita [NRT/RJAA] to Chongqing [CKG/ZUCK] and Wuhan [WUH/ZHHH] in February 2016, coinciding with the Chinese New Year peak travel season. Chairman Wang Wei had disclosed over a year ago that these would be their first overseas destinations (Spring Japan considering Chongqing and Wuhan.).

Boeing 737-86N(WL) JA02GR taxies at Narita. Spring Japan is not envisioned to become a major domestic player; it is a vehicle of the Spring Airlines Group to better access the Tokyo market, both politically and regulatorily, and carry Chinese travelers visiting multiple Japanese cities. (Photo: Aviation Wire)

Wuhan will start on February 13th with a three-times-weekly service, operating on Mondays, Wednesdays, and Saturdays, while Chongqing will follow on February 14th operating four times a week on Tuesdays, Thursdays, Fridays, and Sundays. Details of the schedule will be released at a later date. 189-seat Boeing 737-800s will fly the new routes.

Parent Spring Airlines [9C/CQH] already connects the two Chinese cities with Osaka/Kansai [KIX/RJBB], while it also links Chongqing with Luoyang [LYA/ZHLY], Shanghai/Hongqiao [SHA/ZSSS], Shanghai/Pudong [PVG/ZSPD], Shenyang [SHE/ZYTX], Shenzhen [SZX/ZGSZ], and Shijiazhuang [SJW/ZBSJ]. It does not offer any domestic flights from Wuhan. Meanwhile, Narita – Chongqing currently sees Air China [CA/CCA] operating daily and Narita – Wuhan has a twice-weekly round-trip with China Southern Airlines [CZ/CSN].

The Japanese affiliate of China's largest LCC only launched revenue flights last year in August 2014 with three routes from their Narita hub (Spring Airlines Japan commences operations.). However, Takamatsu [TAK/RJOT] was suspended after October 23rd (Spring Airlines Japan to drop Takamatsu.), leaving the fledgling carrier with just twice-daily Hiroshima [HIJ/RJOA] and daily Saga [HSG/RJFS] services for a still small fleet of three 737s. It will not be adding any aircraft for the time being. Domestic expansion is also reportedly in the works, with Kansai and Sapporo/New Chitose [CTS/RJCC] to be launched as early as Spring 2016 (Spring Airlines Japan plans Kansai, Sapporo, and China.). Its Chinese parent is building a hub at Kansai, while it also serves the Hokkaido capital from Shanghai/Pudong.

Source: Aviation Wire, 2015 November 4th. (in Japanese)
Source: Nikkei Shimbun, 2015 November 4th. (in Japanese)

Spring Airlines Japan plans Kansai, Sapporo, and China.

Spring Airlines Japan [IJ/SJO] is poised to add Osaka/Kansai [KIX/RJBB] and Sapporo/New Chitose [CTS/RJCC] along with multiple Chinese cities during the Winter 2015/2016 timetable, which starts on October 25th. From their hub at Tokyo/Narita [NRT/RJAA], Kansai will be served twice daily and New Chitose once daily. Chongqing [CKG/ZUCK] and Wuhan [WUH/ZHHH] are expected to become their first international destinations (Spring Japan cuts flights but hopeful for China in 2015.). Details will officially be released in late August.

Boeing 737-81D(WL) N272LM/JA01GR climbs on a pre-delivery test flight. Spring Japan's fleet of three Baby Boeings has remained the same since launching operations. (Photo: Spring Airlines Japan)

Kansai is natural considering Spring Airlines [9Q/CQH], which owns 48% (33% of voting rights) of the Japanese unit, already boasts nonstop services from there to 10 Chinese cities: Chengdu [CTU/ZUUU], Chongqing, Qingdao [TAO/ZSQD], Quanzhou [JJN/ZSQZ], Shanghai/Pudong [PVG/ZSPD], Tianjin [TSN/ZBTJ], Wuhan, Xian [XIY/ZLXY], and Zhengzhou [CGO/ZHCC]. Spring has ambitious plans to turn Kansai into a hub, flying 100 weekly flights to 20 Chinese destinations by 2020. Meanwhile, New Chitose is also served by China's biggest LCC five times weekly from Shanghai/Pudong.

Using a small fleet of three 189-seat Boeing 737-800s, Spring Japan only started operations last August (Spring Airlines Japan commences operations.) and currently flies from Narita to Hiroshima [HIJ/RJOA] twice daily, Saga [HSG/RJFS] daily, and Takamatsu [TAK/RJOT] four times weekly. These secondary routes are still unprofitable, except maybe for Hiroshima. It reported a 4.92 billion JPY loss for 2014, and its Chinese parent had injected 900 million JPY last December in the form of third-party allocation of non-voting stocks (Spring Japan posts heavy loss but mulls Asia expansion.).

Spring Japan's original mission had been to tap into secondary Chinese markets carrying mostly Chinese tourists to the Kanto (Greater Tokyo) region, as batch of slots and rights don't come easily for foreign carriers at Narita, much less at Tokyo/Haneda [HND/RJTT]. Hence it hasn't emphasized expanding in Japan's domestic market compared to other LCCs such as Jetstar Japan [GK/JJP] and Peach Aviation [MM/APJ]. However, Spring Japan will likely connect its Chinese parent's destinations in Japan as with Kansai, Saga, New Chitose, and Takamatsu, and has publicly stated international flights will not only serve China but Hong Kong, Macau, South Korea, Taiwan, and Southeast Asia as well in the long term.

Source: Traicy, 2015 July 28th. (in Japanese)

Spring Japan posts heavy loss but mulls Asia expansion.

Spring Airlines Japan [IJ/SJO] reported a 4.92 billion JPY loss for 2014. Total revenue was 836 million JPY, operating loss stood at 4.89 billion JPY, while its ordinary loss was 4.94 billion JPY. In December, largest shareholder Spring Airlines [9Q/CQH] injected 900 million JPY in the form of third-party allocation of non-voting stocks, raising total capital to 6.9 billion JPY (Spring Japan receives 900 million JPY injection.). The Japanese unit of China's biggest LCC only started operations last August (Spring Airlines Japan commences operations.).

Boeing 737-86N(WL) JA02GR taxies for departure from Narita. Original plans called for adding five new aircraft each year to reach 20 by 2017, however, all new deliveries seem to have been postponed indefinitely. (Photo: Aviation Wire)

From its Tokyo/Narita [NRT/RJAA] hub using a small fleet of three 189-seat Boeing 737-800s, Spring Japan currently flies double-daily to Hiroshima [HIJ/RJOA], daily to Saga [HSG/RJFS], and four times weekly to Takamatsu [TAK/RJOT]. These secondary routes are still unprofitable, except maybe for Hiroshima. On April 8th, it moved into Narita's Terminal 3, which is dedicated for LCCs (Narita opens Tokyo's LCC gateway: Terminal 3.).

Japan's youngest operating LCC has talked of launching international flights to China by the end of this year (Spring Japan cuts flights but hopeful for China in 2015.) with Chongqing [CKG/ZUCK], Lanzhou [LHW/ZLLL], and Wuhan [WUH/ZHHH] to become its initial destinations (Spring Japan considering Chongqing and Wuhan.). In addition, parent Spring Airlines' CEO Zhang Xiuzhi revealed in March that Hong Kong, Macau, South Korea, Taiwan, and Southeast Asia are also on Spring Japan's radar, with Osaka/Kansai [KIX/RJBB] and Sapporo/New Chitose [CTS/RJCC] (Spring Japan eyes Sapporo and China in 2015.) on the wishlist for domestic cities.

However, Spring Japan's original mission had been to tap into secondary Chinese cities catering to mostly Chinese tourists traveling to Japan, with much less emphasis on Japan's domestic market. And with parent Spring Airlines now setting up its own hub at Kansai, envisioning 100 weekly flights serving 20 Chinese cities and basing 10 aircraft by 2020, they may not feel the need to tolerate the Japanese unit's red ink after all, especially if they deem the domestic market unimportant. System-wide average booking rate for the upcoming Golden Week peak travel period is a pale 57.6% so far. Will Spring Japan be able to live up to its ambitions?

Source: Aviation Wire, March 3rd. (in Japanese)
Source: Aviation Wire, April 8th. (in Japanese)
Source: Spring Airlines Japan, April 24th. (in Japanese)

Spring Japan cuts flights but hopeful for China in 2015.

Spring Airlines Japan [IJ/SJO] has released its Summer 2015 timetable, effective March 29th, which sees no new routes but a reduction of Tokyo/Narita [NRT/RJAA] – Takamatsu [TAK/RJOT] from daily to four-times weekly. It will maintain their twice-daily service to Hiroshima [HIJ/RJOA] and a daily flight to Saga [HSG/RJFS]. Meanwhile, regional international routes to China (Spring Japan eyes Sapporo and China in 2015.), which were planned for Summer 2015, are now targeted "by year-end 2015," according to officials of Japan's latest LCC.

Boeing 737-86N(WL) JA03GR is the third aircraft in Spring Japan's tiny fleet. Two, including this aircraft, are leased from GECAS, while the other is leased from AWAS. (Photo: Aviation Wire)

Frequency for the Takamatsu service was reduced due to "load factors much lower than anticipated," according to the official. They had originally targeted 80% and had plans to make it double-daily. Rival LCC Jetstar Japan [GK/JJP] competes on the same route with two daily round-trips. From March 29th, Spring Japan will operate the service four days a week, on the same days when Chinese parent Spring Airlines [9C/CQH] flies in from Shanghai/Pudong [PVG/ZSPD] to the Shikoku airport, to raise brand awareness.

System Flight Schedule:
Narita – Hiroshima 2 daily with 737-800. (Mar/29 - May/31)
IJ621 NRT 0850 – 1030 HIJ 73H Daily
IJ623 NRT 1655 – 1835 HIJ 73H Daily
IJ622 HIJ 1115 – 1245 NRT 73H Daily
IJ624 HIJ 1920 – 2050 NRT 73H Daily

Narita – Saga 1 daily with 737-800. (Mar/29 - May/31)
IJ601 NRT 1125 – 1340 HSG 73H Daily
IJ602 HSG 1425 – 1610 NRT 73H Daily

Narita – Takamatsu reduced from 7 to 4 weekly with 737-800. (Mar/29 - May/31)
IJ611 NRT 0700 – 0830 TAK 73H Tu/Th/Fr/Su
IJ612 TAK 0915 – 1040 NRT 73H Tu/Th/Fr/Su

Spring Japan's first international routes, which will be regional flights to China, have been delayed and are now planned by the end of 2015. Chongqing [CKG/ZUCK], Lanzhou [LHW/ZLLL], and Wuhan [WUH/ZHHH] are currently being considered (Spring Japan considering Chongqing and Wuhan.), according to the official. The fledgling carrier has started recruiting more cockpit crew, and is calling for 10 pilots at this time. It currently has 15 captains and 12 first officers, and before the end of FY2014 intends to begin training to promote first officers to captains.

Meanwhile, the so-far unprofitable Japanese arm of China's largest LCC group was recapitalized in December with an injection of 900 million JPY from an unnamed source (Spring Japan receives 900 million JPY injection.). However, considering it was raised by issuing new non-voting stocks, the investor is most likely parent Spring Airlines. Spring Japan only launched operations last August (Spring Airlines Japan commences operations.), with the aim of connecting secondary Chinese cities with Japan.

Original plans called for adding five aircraft each year, however, the fleet will be kept at three Boeing 737-800s at least through FY2015 even after it starts international services.

Source: Spring Airlines Japan, January 30th. (in Japanese)
Source: Traicy, February 3rd. (in Japanese)
Source: Aviation Wire, February 3rd. (in Japanese)

Spring Japan considering Chongqing and Wuhan.

Spring Airlines Japan [IJ/SJO] is planning to launch international flights to China from Spring 2015, according to Wang Wei, Chairman of the airline, in an interview carried out by Kyodo Press. Four Chinese destinations are currently being considered by the fledgling Tokyo/Narita [NRT/RJAA]-based LCC for next year, including Chongqing [CKG/ZUCK] and Wuhan [WUH/ZHHH].

Boeing 737-86N(WL) JA02GR arrives back at the airline's Narita hub. (Photo: Ryosuke Yano)

"There's a huge yet-to-be-tapped market from China to Japan," said Mr. Wang, who added "Japan is the most tourism resource-rich neighbor, but China's number of visitors to Japan is still below (South) Korea." Mr. Wang also revealed that they intend to open around 10 Chinese routes from their hub at Narita in the coming years, with eyes especially on secondary Chinese cities not facing the sea. The current fleet of three 189-seat Boeing 737-800s will be expanded to 20 by the end of 2017.

Spring Airlines Japan only began flying this August initially with domestic routes (Spring Airlines Japan commences operations.) linking Narita with Hiroshima [HIJ/RJOA], Saga [HSG/RJFS], and Takamatsu [TAK/RJOT]. It is the Japanese unit of China's largest LCC Spring Airlines [9C/CQH], which already operates to the big cities of Osaka/Kansai [KIX/RJBB] and Sapporo/New Chitose [CTS/RJCC], as well as the secondary destinations of Ibaraki [IBR/RJAF], Saga, and Takamatsu.

Reference: Oita Godo Shimbun, November 8th. (in Japanese)