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)

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)

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)

Vanilla Air eyes China, Southeast Asia, and Okinawa hub.

On January 29th, Vanilla Air's [JW/VNL] owner ANA Holdings, parent of Japan's largest carrier All Nippon Airways [NH/ANA], announced that it would increase the Tokyo/Narita [NRT/RJAA]-based LCC's capacity by 218% as measured by available seat kilometers (ASKs) by the end of FY2020. It aims to become the number one LCC at Narita, going head to head with rival Jetstar Japan [GK/JJP], and also partly competing with sister Peach Aviation [MM/APJ], minority-owned by ANA.

Airbus A320-216(SL) JA06VA taxies for departure from Narita. Vanilla Air plans to add up to five aircraft in FY2016, with another dozen to be inducted by FY2020. (Photo: Ryosuke Yano)

Vanilla will add more leisure-oriented markets, including cities which have yet to be served by the ANA Group, and enter the Chinese market to tap into Japan's largest source of inbound tourists. It also envisions setting up its second hub at Okinawa/Naha [OKA/ROAH], and designating Taipei/Taoyuan [TPE/RCTP] a strategic focus city, which would inevitably increase overlap with Peach (Peach Aviation grows Okinawa; Narita and more Taipei.). Guam, Saipan, Philippines, along with Southeast Asia are on the horizon, though Osaka/Kansai [KIX/RJBB] – Taipei (Vanilla Air to add Kansai – Taipei in Summer 2016.) is expected to become the next route.

Its current fleet of eight 180-seat Airbus A320s will be grown to 25 by FY2020, and the re-engined A320neo is under consideration. Acquisition of A330 wide-body aircraft will also continue to be evaluated, but it would be necessary if Vanilla wishes to fly to Southeast Asia nonstop from Narita both ways without payload penalties. "A single-type operation is the LCC formula, but we're also evaluating a plan with wide-bodies," said ANA Holdings President Shinya Katanozaka, adding "Asian LCCs are evolving, and they're entering longer routes. We may operate two types side-by-side, or even a complete shift to wide-body-only operations in the long-term is also a possibility."

Some sources say there is already an undisclosed done deal for ANA to lease a few A330s from CIT Aerospace for deployment at Vanilla. Pleasing CIT, Skymark Airlines' [BC/SKY] fourth largest creditor after Intrepid Aviation, Airbus, and Rolls-Royce, was also necessary for ANA to win support to sponsor Japan's bankrupt third largest airline (Bye-bye Skymark, Hello ANA Airbus A380?). Meanwhile, Vanilla has become quiet on any plans to fly to Hawaii after ANA finally released plans to fly Skymark's displaced A380s to the popular resort destination. With ANA's A380s planned to accommodate 500 to 600 passengers, they would virtually be dumping seats in the market overnight, and an entry by Vanilla would result in excessive overcapacity.

Source: ANA Holdings, 2016 January 29th. (in Japanese)
Source: Aviation Wire, 2016 February 3rd. (in Japanese)

*Edited/updated on 2016 February 3rd. 

Jetstar Japan reveals Manila, downsizes Kumamoto.

On January 19th, Jetstar Japan [GK/JJP] announced that it will add Manila/Ninoy Aquino [MNL/RPLL] to its network this spring (Jetstar Japan launches Taipei, next up Manila.), with service from Tokyo/Narita [NRT/RJAA] commencing on March 15th, Nagoya/Chubu Centrair [NGO/RJGG] on April 1st, and Osaka/Kansai [KIX/RJBB] on April 7th. All flights will be operated by 180-seat Airbus A320-200s. This marks the first time a Japanese LCC lands in the Philippines.

Airbus A320-232(SL) JA19JJ taxies for departure from Narita's Terminal 3, dedicated to LCCs. (Photo: Ryosuke Yano)

Narita – Manila will initially start off with three weekly round-trips, gradually increasing to up to seven times weekly. Chubu Centrair – Manila will commence with up to seven weekly, and Kansai – Manila with up to four times weekly. 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 had received antitrust immunity from Japanese authorities to coordinate schedules and prices on routes between Japan and Taiwan and the Philippines last October.

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.

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.

All flights 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. Tickets went on sale at 1600 JST today, and promotional fares are offered for all three new routes starting from one-way 990 JPY, excluding tax and fuel surcharges. The promotion is limited to 2,000 seats, and are only available for 26 hours. Normal one-way fares start from 9,000 JPY for Narita – Manila and Chubu Centrair – Manila and 8,500 JPY for Kansai – Manila, both excluding tax and fuel surcharges.

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] (x2 daily), Delta Air Lines [DL/DAL] (daily), and Philippine Airlines [PR/PAL] (x2 daily), while Chubu Centrair – Manila sees Cebu Pacific (x4 weekly) and Philippine Airlines (daily) and Kansai – Manila has Cebu Pacific (x5 weekly), Jetstar Asia (x3 weekly), and Philippine Airlines (daily). Zest Airways [Z2/EZD] (d.b.a. AirAsia Zest) is preparing to enter the Philippines – Japan market during the second half of 2016.

Meanwhile, on January 15th, Jetstar Japan had disclosed that it would axe Kansai – Kumamoto [KMJ/RJFT] effective March 27th, the beginning of the Summer 2016 timetable. It was initially launched on October 26th, 2014 with two round-trips per day (Jetstar Japan starts three routes from Kumamoto.), but later reduced to daily. Recent load factors have reportedly hovered around 50-60%. It becomes the third route suspended by the growing LCC after Chubu Centrair – Kumamoto and Kansai – Oita [OIT/RJFO] (Jetstar Japan cuts Nagoya – Kumamoto and Kansai – Oita.).

Source: Jetstar Japan, 2016 January 15th. (in Japanese)
Source: Jetstar Japan, 2016 January 19th. (in Japanese)
Source: Aviation Wire, 2016 January 19th. (in Japanese)

Fuji Dream mulls Chubu – Narita and international charters.

Fuji Dream Airlines [JH/FDA] will reportedly launch a base at Nagoya/Chubu Centrair [NGO/RJGG] by 2017 (Fuji Dream plans Izumo, Kitakyushu, and Chubu Centrair.) and start international charters along with Chubu Centrair – Tokyo/Narita [NRT/RJAA], according to an interview by Chunichi Shimbun with President Yohei Suzuki. The niche regional carrier currently operates only domestic routes from its hubs at Nagoya/Komaki [NKM/RJNA], Chubu (Greater Nagoya) region's older but convenient airport near downtown, and Shizuoka [FSZ/RJNS], where it is headquartered.

Embraer ERJ170-200/STD JA08FJ Tea Green at Aomori, moments before rotation. Fuji Dream plans a fleet of a dozen E-Jets by 2018, though the Mitsubishi Regional Jet is currently being evaluated as a replacement in the long-term. (Photo: Ryosuke Yano)

FDA flies nine aircraft, comprised of six 84-seat Embraer ERJ170-200/STD (E175) and three 76-seat ERJ170-100 (E170), with the next E175 arriving in March 2016 and another coming one year later (Fuji Dream orders up to six more Embraer E175s.). All of its aircraft either return to Komaki or Shizuoka for the night, as most of the airports it serves have curfews, and FDA intends to take advantage of Chubu Centrair's 24-hour operation to experiment late-night or early-morning international charters to China, South Korea, and Taiwan. Other open-around-the-clock airports such as Kitakyushu [KKJ/RJFR] and Osaka/Kansai [KIX/RJBB] are also being considered as points of origin.

The Shizuoka-based airline also plans to add Chubu Centair – Narita in the daytime to cater to international connecting passengers, and they are reportedly talking with European and North American airlines (non-Star, non-Oneworld?) for a code-sharing agreement. Meanwhile, it will maintain its domestic network from Komaki, which currently boasts nine destinations including Aomori [AOJ/RJSA], Fukuoka [FUK/RJFF], Hanamaki [HNA/RJSI], Izumo [IZO/RJOC] (Fuji Dream launches Izumo and Kitakyushu.), Kochi [KCZ/RJOK], Kitakyushu, Kumamoto [KMJ/RJFT], Niigata [KIJ/RJSN], and Yamagata [GAJ/RJSC].

FDA has largely been able to gain popularity due to it being the sole carrier at Nagoya's preferred airport near downtown, where it essentially filled the void left by J-Air [XM/JLJ], which withdrew in March 2011. However, their upcoming 10th aircraft cannot be based at Komaki due to limited parking space, and further expansion at Komaki would come against the Aichi Government and local companies' desire to consolidate all flights at Chubu Centrair. A gentleman's agreement also prohibits flights over 1,000 kilometers from Komaki.

But for FDA, moving its entire operation to Chubu Centrair would not only mean it would lose Komaki's proximity advantage, but also suddenly put itself in competition with the plethora of LCCs adding services at Nagoya's premier international gateway. Jetstar Japan [GK/JJP] flies both domestic and international routes (Jetstar Japan adds Nagoya and Kansai to Taipei.), while the second AirAsia Japan [DJ] is starting services in April with a hub at Chubu Centrair (New AirAsia Japan receives AOC; takeoff in April 2016.). Overseas LCCs include Spring Airlines [9C/CQH] and V Air [ZV/VAX], while Tigerair Taiwan [IT/TTW] plans to start on January 29th. So for now, FDA's answer to Nagoya is a split hub.

Source: Chunichi Shimbun, 2015 December 23rd. (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)

Peach Aviation grows Okinawa; Narita and more Taipei.

On December 8th, Peach Aviation [MM/APJ] announced that it will launch Okinawa/Naha [OKA/ROAH] – Tokyo/Narita [NRT/RJAA] on February 20th, 2016. The new link will initially be operated three times per week, increasing to daily from the Summer 2016 timetable effective March 27th, using 180-seat Airbus A320-200s. The growing LCC will also expand Naha – Taipei/Taoyuan [TPE/RCTP] service from daily to 10 weekly from February 19th, and to twice daily from the Summer 2016 schedule.

Airbus A320-214 JA809P along with two others prepare for their next assignment at Kansai Airport's Terminal 2. Peach currently flies 17 A320s with the 18th due in March 2016. (Photo: Ryosuke Yano)

One-way fares for Naha – Narita start from 5,890 JPY for a Happy Peach ticket, which includes a 10-kilogram carry-on baggage allowance, and for Naha – Taipei/Taoyuan from 4,780 JPY. Tickets went on sale today. Both new round-trips are timed in the evening.

Flight Schedule:
Naha – Narita NEW three times weekly with A320-200. (From Feb/20.)
MM508 OKA 1600 – 1825 NRT 320 Mo/Th/Sa *Daily from Mar/27.
MM509 NRT 1900 – 2215 OKA 320 Mo/Th/Sa *Daily from Mar/27.

Naha – Taipei/Taoyuan increase from daily to 10 weekly with A320-200. (From Feb/19.)
MM921 OKA 0905 – 0940 TPE 320 Daily
MM927 OKA 1640 – 1715 TPE 320 We/Fr/Su *NEW. Daily from Mar/27.
MM922 TPE 1015 – 1245 OKA 320 Daily
MM928 TPE 1750 – 2020 OKA 320 We/Fr/Su *NEW. Daily from Mar/27.

Peach's second hub at Naha (Peach launches Naha hub; but Naha – Ishigaki axed.) currently boasts Fukuoka [FUK/RJFF], Hong Kong [HKG/VHHH], Osaka/Kansai [KIX/RJBB], Seoul/Incheon [ICN/RKSI] (Peach Aviation starts Okinawa – Seoul.), and Taipei/Taoyuan, while Narita sees Fukuoka, Kansai, and Sapporo/New Chitose [CTS/RJCC] (Peach starts Narita to Fukuoka and Sapporo.). The Kansai-based LCC will make Tokyo's main international gateway its third hub (Peach confirms Narita hub; adds Fukuoka and Sapporo.), though Sendai [SDJ/RJSS] could come before depending on the availability of favorable slots at Narita (Peach plans Sendai hub by Summer 2017.).

Narita – Naha is also served by All Nippon Airways [NH/ANA], mostly catering to international – domestic connections, along with Jetstar Japan [GK/JJP] and Peach's sister Vanilla Air [JW/VNL], making it the second route after Narita – New Chitose to see three LCCs competing. That said, ANA Holdings' two sister LCCs will initially avoid direct competition, as Vanilla's flight is in the morning while Peach's is in the evening, unlike with Narita – New Chitose. ANA has always considered consolidating the two as their network overlap becomes inevitable, however, while Vanilla is wholly-owned by ANA, it only holds a minority (though still significant) 39% stake in Peach and its CEO Shinichi Inoue has repeatedly shown preference to grow organically, making any merger out of question at least in the near term.

Source: Peach Aviation, 2015 December 8th. (in Japanese)
Source: Aviation Wire, 2015 December 8th. (in Japanese) 

Jetstar Japan launches Taipei, next up Manila.

On November 27th, Jetstar Japan [GK/JJP] launched Taipei/Taoyuan [TPE/RCTP], initially serving the Taiwanese capital three times a week from Tokyo/Narita [NRT/RJAA] (Jetstar Japan is coming to Taipei in November.). Taiwan becomes the Narita-based LCC's only second international destination after Hong Kong [HKG/VHHH] (Jetstar Japan goes international with Kansai – Hong Kong.). Operated by 180-seat Airbus A320s, the new link will be increased to four times weekly on December 14th and daily from December 23rd.

Airbus A320-232(SL) JA20JJ arrives at Narita. Jetstar Japan operates 20 aircraft, while another four are currently sub-leased out to other carriers. (Photo: Aviation Wire)

The outbound flight departs Narita approximately one hour before the 2300 curfew, and arrives into Taipei in the middle of the night, while the return leg departs Taipei before dawn and arrives back at Narita in the morning, about an hour after the airport opens at 0600. Inaugural flight GK011 departed at 2132 JST, eight minutes ahead of schedule, carrying 169 passengers. A320-232(SL) JA20JJ, the airline's newest machine, was assigned. Unlike most inaugural flights, ceremonial events were only held at the departure gate and not during the flight, as it runs on a red-eye timetable. The flight arrived at Taipei at 0035 CST.

Flight Schedule:
Tokyo/Narita – Taipei/Taoyuan NEW three weekly with A320-200 (daily from Dec/23).
GK011 NRT 2140 – 0040(+1) TPE 32A/320 Fr *From Nov/27.
GK011 NRT 2200 – 0100(+1) TPE 32A/320 We/Su *Nov/27 - Dec/9.
GK011 NRT 2200 – 0100(+1) TPE 32A/320 Mo/We/Su *Dec/11 - 21.
GK011 NRT 2200 – 0100(+1) TPE 32A/320 Mo/Tu/We/Th/Sa/Su *From Dec/23.
GK012 TPE 0330 – 0730 NRT 32A/320 Mo/Th/Sa *Nov/28 - Dec/10.
GK012 TPE 0330 – 0730 NRT 32A/320 Mo/Tu/Th/Sa *Dec/12 - 22.
GK012 TPE 0330 – 0730 NRT 32A/320 Daily *From Dec/24.

"So far, about 60-65% of passengers are from Taiwan, and 35-40% are from Japan," said Chairman Masaru Kataoka, adding "Since it's timed for an early-morning arrival in Tokyo and late-night return to Taiwan, it may be a good schedule for the Taiwan side." Mr. Kataoka believes it can take advantage of brand recognition as Taipei is already served by sister airline Jetstar Asia Airways [3K/JSA], with service to and from Singapore/Changi [SIN/WSSS] and Osaka/Kansai [KIX/RJBB].

Jetstar Japan only launched international flights in February this year, with service to Hong Kong from Kansai (Jetstar Japan goes international with Kansai – Hong Kong.) followed by Narita from June (Jetstar Japan starts Narita – Hong Kong.). For Taipei, flights to and from Kansai will follow on December 11th and Nagoya/Chubu Centrair [NGO/RJGG] on December 12th (Jetstar Japan is coming to Taipei in November.). The carrier hopes to add  Manila/Ninoy Aquino [MNL/RPLL], to become its third overseas city, in Spring 2016. Sister Jetstar Asia already flies Kansai – Manila.

Jetstar Japan, Jetstar Asia, and Jetstar Airways [JQ/JST] already have regulatory approval to coordinate flight times and prices on international routes between Japan and Taiwan and the Philippines, which they received from Japan's Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) on October 2nd.

Source: Aviation Wire, 2015 November 28th. (in Japanese)