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.

Peach Aviation starts Haneda – Seoul.

On February 6th, Peach Aviation [MM/APJ] inaugurated Tokyo/Haneda [HND/RJTT] – Seoul/Incheon [ICN/RKSI] (Peach Aviation announces Haneda – Seoul.). It became their second route from the downtown Tokyo airport after Taipei (Peach Aviation inaugurates Haneda – Taipei.), which was only launched in August 2015, and their 10th international route overall. Meanwhile, Seoul will now be served from three points: Okinawa/Naha [OKA/ROAH], Osaka/Kansai [KIX/RJBB], and Haneda. All flights are operated by 180-seat Airbus A320s.

Airbus A320-214 JA813P at Haneda moments after arriving from Seoul's Incheon as the inaugural flight. Peach's fleet boasts a modest 17 A320s, with the next example not due until October this year. (Photo: Aviation Wire)

The inaugural inbound flight MM1008 departed Incheon on February 5th at 2301 KST with a full load of 181 passengers including an infant, and touched down at Haneda past midnight at 0106 JST. A320-214 JA813P was assigned. Meanwhile, the maiden outbound leg MM1009 departed Haneda on February 6th at 0207 JST carrying 173 passengers including two infants, and arrived at Incheon early in the morning at 0442 KST. There is no time difference between Tokyo and Seoul.

Flight Schedule:
Haneda – Seoul/Incheon NEW 1 daily with A320-200.
MM1009 HND 0200 – 0435 ICN 320 Daily *From Feb/6.
MM1008 ICN 2250 – 0100(+1) HND 320 Daily *From Feb/5.

As with Peach's Haneda – Taipei link, the new service to Korea also uses the heavily-regulated airport's under-utilized midnight slot-pairs reserved exclusively for international flights. Peach added a fourth round-trip between Kansai and Seoul from the same day, and after that aircraft arrives into Seoul, it turns around to become the inbound flight to Haneda. After a brief 60-minute stay, it returns to Seoul as the outbound red-eye flight from Haneda, in time for the first flight of the day from Seoul back to Kansai.

"If you feel like you're up for a Korean barbeque or beauty salon tomorrow, Peach has been providing the answer for those in Osaka. Now we'll be offering that to everyone in Tokyo," said Shinichi Inoue, CEO of Peach, who was present at Haneda on the day. "Travel has become much more affordable and Japan and the rest of Asia are now closer than ever. We're looking forward to opening up our third and fourth international routes from Haneda," Mr. Inoue continued, without naming any destinations. Haneda's current constraints confine Peach to arrivals and departures between 2300 and 0600 only, so the third and fourth will also likely be existing cities on Peach's network if it wishes not to sacrifice aircraft utilization. Hong Kong [HKG/VHHH] and Kaohsiung [KHH/RCKH] would be natural choices.

Source: Aviation Wire, 2016 February 6th. (in Japanese)

Peach Aviation announces Haneda – Seoul.

On November 11th, Peach Aviation [MM/APJ] revealed that they will commence Tokyo/Haneda [HND/RJTT] – Seoul/Incheon [ICN/RKSI] on February 5th, 2015. It will become their second route from the downtown Tokyo airport after Taipei (Peach Aviation inaugurates Haneda – Taipei.), which was only launched in August, and their 10th international route overall. On the same day, they are also adding a fourth round-trip between Osaka/Kansai [KIX/RJBB] and Seoul.

Airbus A320-214 JA817P/F-WWBZ at Toulouse Blagnac. Peach's 17th aircraft will be delivered later this month. (Photo: Tobias Gudat)

Along with Peach's Taipei link from Haneda, the new service will also use the heavily-regulated airport's under-utilized midnight slot-pairs reserved exclusively for international routes. The aircraft for the Seoul – Haneda route arrives into Seoul as the fourth flight from Kansai late in the evening, and turns around for the inbound flight to Haneda. After a brief 60-minute stay, it returns to Seoul as the outbound red-eye flight from Haneda, in time for the first flight of the day from Seoul back to Kansai.

Flight Schedule:
Haneda – Seoul/Incheon NEW 1 daily with A320-200.
MM1009 HND 0200 – 0435 ICN 320 Daily *From Feb/6.
MM1008 ICN 2250 – 0100(+1) HND 320 Daily *From Feb/5.

Kansai – Seoul/Incheon increase from 3 to 4 daily with A320-200.
MM001 KIX 0750 – 0945 ICN 320 Daily
MM005 KIX 1240 – 1435 ICN 320 Daily
MM009 KIX 1815 – 2010 ICN 320 Daily *No ops Feb/29 - Mar/3, Mar/7-10, 14-17, 22-24.
MM011 KIX 2000 – 2155 ICN 320 Daily *From Feb/5.
MM012 ICN 0745 – 0925 KIX 320 Daily *From Feb/6 except Feb/11-26 Thu/Fri.
MM012 ICN 0725 – 0905 KIX 320 Thu/Fri *Feb/11-26.
MM002 ICN 1025 – 1205 KIX 320 Daily
MM006 ICN 1515 – 1655 KIX 320 Daily
MM010 ICN 2050 – 2230 KIX 320 Daily *No ops Feb/29 - Mar/3, Mar/7-10, 14-17, 22-24.

One-way fares for Haneda – Seoul start from 5,680 JPY for a Happy Peach ticket, which includes a 10-kilogram carry-on baggage allowance, and will go on sale on November 18th at 1500 JST. A promotional round-trip 9,000 JPY will be offered for travel between February 16th and March 17th provided the passenger boards both legs on the same day, allowing for a 18-hour stay in South Korea's capital. Kansai – Seoul starts from 5,280 JPY and the new round-trip went on sale today.

Due to regulatory obstacles, Peach so far has a split operation for Tokyo; international routes to Seoul and Taipei leave from Haneda and domestic routes to Fukuoka [FUK/RJFF], Kansai, Sapporo/New Chitose [CTS/RJCC] depart from Tokyo/Narita [NRT/RJAA] (Peach starts Narita to Fukuoka and Sapporo.). Any new domestic flights or daytime international services need to fly from Narita as the Kansai-based LCC does not hold slots for those purposes at Haneda. Seoul becomes Peach's second international destination after Taipei to be served from three points in Japan; Okinawa/Naha [OKA/ROAH] (Peach Aviation starts Okinawa – Seoul.), Kansai, and Haneda. Will Hong Kong [HKG/VHHH] be the third?

Source: Peach Aviation, 2015 November 11th. (in Japanese)
Source: Aviation Wire, 2015 November 11th. (in Japanese)

Peach Aviation starts Okinawa – Seoul.

On September 4th, Peach Aviation [MM/APJ] launched Okinawa/Naha [OKA/ROAH] – Seoul/Incheon [ICN/RKSI] (Peach announces Okinawa – Seoul.). Operated by 180-seat Airbus A320-200s, the daily service became their fifth route out of their Naha hub (Peach launches Naha hub; but Naha – Ishigaki axed.). Japan's so far most successful LCC already serves the South Korean capital three times daily from Osaka/Kansai [KIX/RJBB].

Airbus A320-214 JA808P departs on Peach's inaugural flight from Naha to Incheon. It boasts a modest fleet of 16 A320s. Their 17th will arrive in November, followed by one aircraft each in March, July, and November next year for a total of 20. (Photo: Aviation Wire)

Inaugural flight MM905 departed Naha at 1304 JST with 151 passengers, including five children. Along with locals, many American workers at Okinawa's U.S. bases were also on the flight. Aircraft assigned was A320-214 JA808P, which arrived at Incheon 17 minutes late at 1532 due to traffic congestion. Return leg MM906 left Incheon at 1611 carrying a full load of 180 passengers, including three children, and arrived at Naha at 1824.

"Unlike the majors, Peach's target is younger travelers. We're seeing repeaters," said Shinichi Inoue, CEO of the Kansai-headquartered LCC, when asked about expansion in the Japan – South Korea market, which has seen Japanese incumbents reducing capacity due to political tensions and territorial disputes. Tokyo/Narita [NRT/RJAA]-based sister LCC Vanilla Air [JW/VNL] also withdrew from the market in March this year (Vanilla Air to suspend Seoul.).

Flight Schedule:
Naha – Seoul/Incheon NEW daily with A320-200.
MM905 OKA 1305 – 1515 ICN 320 Daily
MM906 ICN 1555 – 1805 OKA 320 Daily

Peach first arrived in Naha with service from Kansai on October 18th, 2012, and added Ishigaki [ISG/ROIG] on September 13th, 2013, followed by Taipei/Taoyuan [TPE/RCTP] seven days later. It was upgraded to a hub on July 19th, 2014 with the launch of Fukuoka [FUK/RJFF], though Ishigaki became the first route to be axed on Peach's network at the same time (Peach launches Naha hub; but Naha – Ishigaki axed.). Although Mr. Inoue cited heavy competition as the reason for the suspension, rumors point out to 39% owner ANA Holdings pressuring Peach to exit the short but high-demand route connecting the two major Okinawa islands to protect All Nippon Airways [NH/ANA]. Hong Kong [HKG/VHHH] was launched on February 21st (Peach commences Okinawa – Hong Kong.).

The growing LCC currently bases two A320s at Naha, with ambitions to turn it into a scissors hub to funnel passengers between the main islands of Japan and Southeast Asia. Peach has publicly said Thailand and Vietnam are their top priorities, followed by Malaysia and Singapore. Bangkok/Don Mueang [DMK/VTBD] is being evaluated for launch during the Winter 2015/2016 timetable (Peach mulls Okinawa – Bangkok.), possibly sometime after their 17th A320 is delivered in November. However, Peach does not offer a fly-through product as of yet, forcing passengers to buy two segments separately if they wished to connect, and this may need to change if Mr. Inoue is serious about a full-fledged transit hub.

Source: Aviation Wire, 2015 September 4th. (in Japanese)
Source: Aviation Wire, 2015 September 4th. (in Japanese)

AirAsia Japan confirms Spring 2016 launch from Nagoya.

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

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

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

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

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

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

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

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

Peach announces Okinawa – Seoul.

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

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

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

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

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

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

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

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

Vanilla Air to suspend Seoul.

On December 17th, Vanilla Air [JW/VNL] announced their Summer 2015 schedule, effective from March 29th, 2015. While increasing frequencies to the popular domestic holiday destinations of Okinawa/Naha [OKA/ROAH] and Sapporo/New Chitose [CTS/RJCC], its daily round-trip connecting Tokyo/Narita [NRT/RJAA] and Seoul/Incheon [ICN/RKSI] will be suspended. Tickets for most flights went on sale at 1400 JST on December 18th.

Airbus A320-211 JA8391 LOHACO Jet (Vanilla Air's 'LOHACO Jet' enters service.) lines up for departure from New Chitose on an autumn afternoon. All three 166-seat former ANA A320s have now been replaced by brand new A320s (Vanilla Air unveils new interior with latest Airbus A320.). JA8391 was the last of the three to leave Japanese soil on November 29th, and was ferried to Tucson, U.S.A. for part out. (Photo: Ryosuke Yano)

Network Overview (from March 29, 2015):
Narita – Amami 1 daily. (no change)
Narita – Hong Kong 2 daily. (no change)
Narita – Kaohsiung 1 daily. (no change)
Narita – Naha from up to 2 daily to up to 3 daily. (INCREASE)
Narita – New Chitose from up to 4 daily to up to 8 daily. (INCREASE)
Narita – Seoul/Incheon 1 daily suspended. (SUSPENSION)
Narita – Taipei/Taoyuan 3 daily. (no change) 

The fledgling Narita-based LCC, a wholly owned subsidiary of ANA Holdings, launched service to Incheon on March 1st (Vanilla Air adds Seoul to its network.) and quickly increased it to double-daily two weeks later. However, it was reduced to a daily service from October 26th (Vanilla Air announces Hong Kong and Kaohsiung.) and that too has now been announced to be cut. Branding itself as a leisure LCC, Vanilla Air depends heavily on tourism-oriented travelers, and performance of their sole route to South Korea has been susceptible to the fragile political relationship between the two neighboring nations.

Source: Vanilla Air, December 17th. (in Japanese)

Peach outlines Summer 2014 mass cancellations.

On April 30th, Peach Aviation (MM/APJ), which one week earlier announced up to 2,088 possible flight cancellations for Summer 2014 (Peach to cancel up to 2,088 flights this summer.) due to cockpit crew shortage, outlined details of the reduced operation from May 19th through October 25th.

A Peach Airbus A320 takes off. (Photo: Aviation Wire)

A total of 1,624 flights have been announced as cancellation possibilities during the period, in addition to the 448 flights already canceled between May 1st and 18th, which brings the total to 2,072. The Osaka/Kansai (KIX/RJBB)-based LCC is offering full refunds and re-bookings to their other flights.

Breakdown of Cancellations from May 1st through October 25th:
Okinawa/Naha (OKA/ROAH) – Ishigaki (ISG/ROIG): 198 flights
Kansai – Fukuoka (FUK/RJFF): 496 flights
Kansai – Hong Kong (HKG/VHHH): 46 flights
Kansai – Kagoshima (KOJ/RJFK): 304 flights
Kansai – Matsuyama (MYJ/RJOM): 242 flights
Kansai – Naha: 150 flights
Kansai – Sapporo/New Chitose (CTS/RJCC): 112 flights
Kansai – Sendai (SDJ/RJSS): 466 flights
Kansai – Seoul/Incheon (ICN/RKSI): 42 flights *Only in May and June.
Kansai – Tokyo/Narita (NRT/RJAA): 16 flights

Noteworthy routes include Kansai – Fukuoka, which saw the largest number of possible cancellations accounting for 36.9% of planned flights during this period, while the Naha – Ishigaki route saw the highest rate at a whopping 60.4%. The latter has become a low-fare battleground with Skymark Airlines (BC/SKY) as well as ANA Group and JAL-affiliate Japan Transocean Air (NU/JTA), which also lowered prices, pulling down yields. Meanwhile, routes to Taiwan, both to Taipei/Taoyuan (TPE/RCTP) and Kaohsiung (KHH/RCKH), and to Busan/Gimhae (PUS/RKPK) in South Korea, remain unaffected, reflecting their popularity. Incheon won't see any cancellations for the peak season from July as well.
 
Peach currently employs 52 Captains and 56 First Officers (Copilots), however, eight Captains are absent from work due to health-related issues, and the company's target to recruit 10 additional Captains from outside did not go as planned. Rumors of delays in in-house training of First Officers to become Captains, and flight attendants and maintenance crew shortages have been denied.

Peach has so far been the most successful of the Japanese LCCs, but how much affect these mass cancellations and the April 28th incident at Okinawa (Peach Airbus A320 narrowly avoids crash at Okinawa.) will have on the fledgling carrier is unsure, though it will most definitely be a negative one.

Source: Peach Aviation, April 24th. (PDF; in Japanese)
Source: Peach Aviation, April 30th. (PDF; in Japanese)
Source: Aviation Wire, April 30th. (in Japanese)

Peach to cancel up to 2,088 flights this summer.

On April 24th, Peach Aviation (MM/APJ) announced at a press conference held at Japan's Ministry of Land, Infrastructure, Transport and Tourism (MLIT) that they are considering canceling up to 2,088 flights from May 19th through October 25th due to pilot shortage.

Airbus A320-214 JA806P taxies for departure at Seoul's Incheon. (Photo: Ryosuke Yano)

The Osaka/Kansai (KIX/RJBB)-based LCC currently employs 108 cockpit crews, consisting of 52 Captains and 56 First Officers (Copilot), however, eight Captains are absent from work due to health-related issues, and the company's target to recruit 10 additional Captains from outside is not going as planned. Peach denied any reports that in-house training of First Officers to become Captains is failing as well as rumors of flight attendants and maintenance crew shortages.

As a result, they have already decided to cancel 448 flights from May 19th to June 30th, covering flights from Kansai to Fukuoka (FUK/RJFF), Hong Kong (HKG/VHHH), Kagoshima (KOJ/RJFK), Matsuyama (MYJ/RJOM), Okinawa/Naha (OKA/ROAH), Sapporo/New Chitose (CTS/RJCC), Sendai (SDJ/RJSS), and Seoul/Incheon (ICN/RKSI), offering full refunds as well as re-booking on other Peach-operated flights. It is estimated that 3 billion JPY of revenue would be lost. Final decisions on flights after that date will be announced on April 30th. 2,088 flights equates to 16% of their planned schedule, affecting over 26,000 passengers.

Peach CEO Shinichi Inoue told media "From now on, we will leave more room (for target misses) in recruitment and network plans, so that this never happens again." However, he reiterated that the fledgling LCC is on-track to launch its second hub at Naha on July 19th (Peach announces Naha - Fukuoka.) and its first full year profit is still expected for FY2013, which ended last month, and another year of profit for FY2014 could be reached by increasing aircraft utilization for Winter 2014/2015. Peach currently operates a dozen Airbus A320s, with another to arrive in June, and two more before March 2015.

Crew shortages for Airbus A320s; first Jetstar Japan (GK/JJP) with maintenance crews and now Peach with pilots. In historically Boeing-dominated Japan, recruiting and training staff certified for Airbuses is not catching up with demand. Opting for Boeing 737s for that reason, are executives of Spring Airlines Japan (IJ/SJO) (Spring Airlines Japan to launch services on June 27th.) smiling?

Source: Nikkei Shimbun, April 24th. (in Japanese)
Source: Asahi Shimbun, April 24th. (in Japanese)
Source: Aviation Wire, April 24th. (in Japanese)

Vanilla Air adds Seoul to its network.

Today on March 1st, Vanilla Air (JW/VNL) launched service to Seoul's Incheon Airport (ICN/RKSI), its fourth destination from Tokyo/Narita (NRT/RJAA) and its second international route. The inaugural flight was operated by Airbus A320-216(SL) JA01VA, its so far only aircraft in their full livery, and departed Narita at 0659 local time as JW201 with 173 passengers on board.

Airbus A320-216(SL) JA01VA takes off from Narita. (Photo: Aviation Wire)

Narita - Incheon new 2 daily with 32A/320. *4 daily March 15 - 29. 
JW201 NRT 0705 – 0950 ICN 32A/320 Daily
JW203 NRT 0845 – 1130 ICN 32A/320 Daily *March 15 - 29. 
JW203 NRT 1600 – 1835 ICN 32A/320 Daily *March 30 - June 30.
JW205 NRT 1320 – 1555 ICN 32A/320 Daily *March 1 - 29.
JW207 NRT 1515 – 1800 ICN 32A/320 Daily *March 15 - 29.
JW202 ICN 1035 – 1250 NRT 32A/320 Daily
JW204 ICN 1215 – 1430 NRT 32A/320 Daily *March 15 - 29.
JW204 ICN 1920 – 2155 NRT 32A/320 Daily *March 30 - June 30.
JW206 ICN 1645 – 1900 NRT 32A/320 Daily *March 1 - 29.
JW208 ICN 1855 – 2110 NRT 32A/320 Daily *March 15 - 29.

Just a few days ago, Vanilla Air took delivery of their fourth aircraft, Airbus A320-211 JA8385, a secondhand machine transferred from sister All Nippon Airways (NH/ANA). It debuted on March 1st on flight JW901 from Narita to Sapporo/New Chitose (CTS/RJCC). Its fifth will also come from ANA (rumors point out at JA8391) later this month. Unlike the first three, which seat 180, these two aircraft retain ANA's 166-seat configuration. Starting tomorrow, JA8385 is expected to serve primarily the Incheon route.

Meanwhile, Vanilla Air reported statistics for December and January. From December 20th, when they launched service, to December 31st, 6,088 out of 7,200 seats were filled for their Narita - Okinawa/Naha (OKA/ROAH) service for a load factor of 84.6%, and 4,065 out of 4,320 seats were filled for their Narita - Taipei/Taoyuan (TPE/RCTP) route for a load factor of 94.1%. January saw Sapporo/New Chitose (CTS/RJCC) added to their network, and 18,673 out of 33,840 seats were filled for domestic flights resulting in 54.9%, while its Taoyuan service remained popular at 91.6%, filling 10,716 out of 11,700 seats. For December, their in-service rate was 100%, on-time departure rate was 62.5%, and on-time arrival rate was 78.1%, while these figures for January were 93.3%, 82.9%, and 84.9%, respectively. 

Present at the inaugural departure, Vanilla Air's President Tomonori Ishii said they are working hard to achieve its first profitable year for fiscal year 2015, in contrast to 100%-parent ANA Holdings' forecast of fiscal year 2016. Fleet plans call for a total of six by the end of March, three additions in fiscal year 2014, and two more in fiscal year 2015. A formal announcement to start Guam and/or Saipan, both of which sister ANA does not serve, is expected to be made later this year.

Source: Vanilla Air, February 26th. (in Japanese)
Source: Aviation Wire, March 1st. (in Japanese)

CoachFlyer KE768: AOJ - ICN on Korean Air's Boeing 737.

Travel date: January 2014
Flight: KE768
Route: Aomori (AOJ/RJSA) - Seoul/Incheon (ICN/RKSI)
Carrier: Korean Air Lines (KE/KAL) d.b.a. Korean Air
Aircraft: Boeing 737-8Q8(WL) HL8224
Class: Economy
Direct distance: 1,283 km (798 miles)
Flight time: 2 hours 34 minutes 

With our flight being the sole international route from the airport, check-in, security check and immigrations were a breeze at Aomori Airport (AOJ/RJSA). Boarding began at 1335, and the doors were closed at 1352. Aomori, the northernmost prefecture of Honshu and one of the country’s snowiest prefectures along with Hokkaido and northwestern Japan, was seeing a blizzard on this day, but with the airport located on a mountain, it is not something rare at all. That is one of the reasons why Aomori Airport is one of only seven airports in Japan fully equipped with ILS Category IIIb, and also boasts Japan's fastest airport snow plowing system which airport officials have dubbed 'White Impulse'.

Our Boeing 737-8Q8(WL) HL8224 arriving at Aomori from Incheon. (Photo: Ryosuke Yano)

De-icing took some time, and push-back didn't start until 1404, nine minutes behind schedule. All announcements were made in the order of Korean, English, and Japanese, but the safety procedure video lacked English. Seven minutes later, we started moving, but visibility wasn't looking good. At 1420, we started our takeoff roll from Runway 24, but immediately after, the thrust reversers and spoilers were deployed, and we realized that takeoff had been aborted. Passengers, wondering why the aircraft could not take off, did not receive an explanation until five minutes later while waiting on the taxiway that there had been a gust warning. 10 minutes later, we tried our second takeoff run, and this time, at 1436, out aircraft lifted to the air. After a very bumpy climb, the seat-belt signs were turned off about seven minutes later, and the crew started preparing for in-flight service.

By the time boarding was ready, a blizzard had come. Poor visibility. (Photo: Ryosuke Yano)

Our aircraft, Boeing 737-8Q8(WL) HL8224, was delivered to ILFC on July 19th, 2011 and immediately leased to Korean Air. It is one of 19 B737-800s the carrier currently operates. At 1450, the crew started serving meals; sauteed chicken with rice served with Kimchi and seaweed. Their tube-packaged Korean chili paste is always a nice accompaniment. Our Captain made his welcome message to the passengers, but nothing about our delayed departure or the weather issue was mentioned. With strong headwinds, our cruising ground speed was 730 kph (450 mph) at an altitude of 9,700 meters (32,000 feet). The meal was followed by rounds of coffee and green tea, and then duty free sales dubbed ‘KAL Sky Shop’ were started. The majority of passengers seemed to be Korean, many on the way back to their home from package tours in Aomori.

Don't forget their tasty Korean chili paste (red cap)! (Photo: Ryosuke Yano)

In June 2013, Korean Air reported they were considering axing the route after load factors were in the fifties, but the airline and Aomori’s prefectural government, along with local authorities who feared the impact on tourism of losing the prefecture’s only international flight, carried out various incentives to lure passengers. Flights were moved to Wednesdays, Fridays, and Sundays which enabled weekend trips instead of the previous Tuesdays, Thursdays, and Saturdays, airport parking fees were lowered, and local transportation companies came up with more package tours. Load factors improved and are reportedly still around 60%, however, Korean Air is still keeping the route. On-going political tensions between Japan and Korea have a relatively large impact, especially on the number of outbound passengers from Aomori.

Our aircraft's Boeing Signature Interior. (Photo: Ryosuke Yano)

At 1535, cabin lights were dimmed and the pale blue mood lights were softly turned on, giving a relaxing feel. However, the cabin crew started to chat in the back of the aircraft, and their voices could be heard in rear rows. The Boeing Signature Interior (BSI) certainly gives a very different impression compared to the normal interior; a spacious cabin with a relaxing atmosphere. This B737 was also equipped with large seat-width-sized personal LCDs and an on-demand entertainment system running Korean Air's 'Beyond' product at every seat, and that also helped to give an impression that this was an international aircraft, and not just another tightly-configured Boeing narrow-body. Our aircraft flew south off the west coast of Japan, overflying Noto and Oki, then heading across the Sea of Japan (East Sea) for the Korean peninsula. Unfortunately, most of the view below us in Japanese airspace was cloudy. 

Looking to the north. The mountains of North Korea in the horizon. (Photo: Ryosuke Yano)

We entered Korean land from Pohang around 1630, and headed northwest towards the nation's capital. A few minutes later, the cabin crew came down with a rounds of water, orange juice, and fruit punch. We passed west of Andong and Chungju, before starting our descent from Suwon, south of Seoul, at 1648. 10 minutes later the seat-belt signs were turned on, and we passed Incheon Airport (ICN/RKSI) to our right. Heading north, we made a sharp turn to the right, enabling us to get a glimpse of the beautiful mountains of North Korea on the horizon. At 1707, we made our last sharp turn to the right, for a final approach to Runway 16. Gears were lowered, and the Boeing 737 touched down at 1710, local time. Total flight time was two hours and 34 minutes. We arrived at remote Spot 822 at 1719, 24 minutes behind schedule. Buses were quick and we were inside the terminal in five minutes.

Sunset seen from Spot 822 at Incheon. (Photo: Ryosuke Yano)

Korean Air provides an efficient option for long-haul travel from its 14 destinations it flies to in Japan, as these flights can feed their global network from their Incheon hub. Crowded and heavily-regulated Tokyo/Haneda (HND/RJTT) has been gradually increasing international flights, finally admitting Incheon's threat, but is still far from being called a true global hub, so many outbound passengers from areas other than Tokyo still do need to make the two-hour ground transfer to Narita Airport (NRT/RJAA) if transiting in Tokyo. Service-wise, Korean Air has a state-of-the-art hard product, but I personally feel the soft part often leaves something to be desired. The crew should have explained the takeoff abort better and at least offered a small apology, even if it was due to a weather issue. Starting to chat in the back when passengers were dozing off is not a good timing, even if it was time for the crew to rest from in-flight services.

JAL adding more Sky Suite destinations.

Japan Airlines (JL/JAL) is expanding their new all-refurbished Sky Suite 777 and 767 product to additional cities in Asia, Europe, and North America.

JAL' new Sky Suite product. (Image: JAL)

Sky Suite Boeing 777-300ERs will now also be deployed on their Tokyo/Narita (NRT/RJAA) - Chicago/O'Hare (ORD/KORD) starting on January 16th, and also on the Frankfurt/Main (FRA/EDDF) route starting in April. All 13 B777-300ERs are expected to be reconfigured by the end of 2014. Meanwhile, from mid-February the Sky Suite Boeing 767-300ERs, which are currently deployed to Vancouver (YVR/CYVR) and Kuala Lumpur/International (KUL/WMKK), will be introduced to Singapore/Changi (SIN/WSSS) on flights JL711 and JL710, to Hanoi/Noi Bai (HAN/VVNB) on flights JL751 and JL752, to Dalian (DLC/ZYTL) on flights JL827 and JL828, and to Seoul/Incheon (ICN/RKSI) on flights JL951 and JL954. Additional cities in Asia plus Hawaii are expected to be added later this year.

Aimed at 'evoking a one-class higher feel', JAL's first Sky Suite 777 entered service on Narita - London/Heathrow (LHR/EGLL) in January 2013, and the Sky Suite 767 on the Narita - Vancouver route in December 2013. In the new configuration, the B777-300ER seats 8 in first, 49 in business, 40 in premium economy, and 135 in economy (232 total), and the B767-300ER seats 24 in business and 175 in economy (199 total).

Source: Japan Airlines (in English)