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

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

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

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

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

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

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

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

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

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

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

Vanilla Air to add Kansai – Taipei in Summer 2016.

Vanilla Air [JW/VNL] will commence Osaka/Kansai [KIX/RJBB] – Taipei/Taoyuan [TPE/RCTP] sometime during the Summer 2016 schedule, which comes into effect on March 27th. Kansai becomes the fledgling LCCs fourth destination in Japan, but the first not originating from or arriving into Tokyo/Narita [NRT/RJAA], where it is based and all flights currently depart from. It has already started hiring ground staff, and descriptions say Chinese fluency is welcomed and initial work would be in the early hours after midnight.

Airbus A320-216(SL) JA01VA takes off from Narita. Vanilla Air's fleet had been capped at eight since FY2014, however, it is now posed for expansion in FY2016 with up to five aircraft to be added. (Photo: Vanilla Air)

The ANA Holdings' 100% subsidiary LCC currently flies four round-trips between Narita and Taiwan's capital. Its fourth flight out of Narita arrives into Taipei right past midnight, and sits on the ground for approximately six hours until its flight back to Narita, and Vanilla is expected to squeeze a Taipei – Kansai round-trip in that time frame. This is how sister LCC Peach Aviation [MM/APJ], minority owned by ANA, flies into Tokyo/Haneda [HND/RJTT] from Taipei (Peach Aviation inaugurates Haneda – Taipei.) and soon Seoul (Peach Aviation announces Haneda – Seoul.) during the early hours without having to base aircraft there.

Vanilla initially planned to add two Airbus A320s during FY2015, however, that was put on hold with ANA Holdings President Shinya Katanozaka also saying achieving its first full year of profit for FY2015 needed come first (Vanilla Air launches Kaohsiung but slows expansion.). But now with brand recognition gradually but firmly increasing and load factors showing significant improvements, the Narita-based LCC intends to add up to five A320s during FY2016 for expansion. President Tomonori Ishii has said China, Micronesia, Philippines were on their radar, though they view time is still not right to resume South Korea, which it axed in March 2015 (Vanilla Air to suspend Seoul.).

Vanilla's arrival in Kansai means encroaching into the stronghold of Peach, which already flies three round-trips on the Kansai – Taipei route. But for now with Vanilla opting for a red-eye flight for Kansai and Peach using that time to fly Taipei – Haneda instead, the two are effectively avoiding direct competition. However, as their respective network and frequencies grow, overlap would eventually become inevitable, and it would be interesting to see how ANA manages the two LCCs, with one only minority-owned (yet still significant) and relatively independent.

 Source: MyNavi, 2015 December 25th. (in Japanese)
Source: Aviation Wire, 2016 January 7th. (in Japanese)

Vanilla Air inaugurates Hong Kong.

On November 2nd, Vanilla Air [JW/VNL] launched thrice-weekly service to Hong Kong [HKG/VHHH] from their hub at Tokyo/Narita [NRT/RJAA]. Frequency will gradually increase, becoming daily from February 1st and then double daily from February 21st, coinciding with the delivery of their seventh and eighth 180-seat Airbus A320s. One of the two flights will run on a red-eye schedule.

Airbus A320-216(SL) JA04VA departs Narita for the first flight to Hong Kong. (Photo: Aviation Wire)

The inaugural flight to Hong Kong, flight JW299, departed at 0905 JST, five minutes before published time with a load of 175 passengers (including two infants), five cabin attendants, and two pilots. A320-216(SL) JA04VA, configured with 180 seats, was assigned. The first return leg from Hong Kong, flight JW300, had 146 bookings. One-way fares start from 8,000 JPY for a ticket with no baggage allowance (Simple Vanilla) and 9,500 JPY for an inclusive ticket with 20 kilograms of baggage allowance plus free seat selection (Komi-komi Vanilla).

Flight Schedule:
Narita – Hong Kong NEW 3 weekly with A320-200.
JW311 NRT 0750 – 1150 HKG 32A Tu *2014/Nov/2 - Dec/31.
JW311 NRT 0945 – 1345 HKG 32A Th *2014/Nov/2 - Dec/31.
JW311 NRT 0910 – 1310 HKG 32A Su *2014/Nov/2 - Dec/31.
JW311 NRT 0735 – 1150 HKG 32A Tu *2015/Jan/1 - 31.
JW311 NRT 0930 – 1345  HKG 32A Th *2015/Jan/1 - 31.
JW311 NRT 0855 – 1310 HKG 32A Su *2015/Jan/1 - 31.
JW312 HKG 1245 – 1740 NRT 32A Tu *2014/Nov/2 - Dec/31.
JW312 HKG 1445 – 1940 NRT 32A Th *2014/Nov/2 - Dec/31.
JW312 HKG 1410 – 1905 NRT 32A Su *2014/Nov/2 - Dec/31.
JW312 HKG 1245 – 1730 NRT 32A Tu *2015/Jan/1 - 31.
JW312 HKG 1445 – 1930 NRT 32A Th *2015/Jan/1 - 31.
JW312 HKG 1410 – 1900 NRT 32A Su *2015/Jan/1 - 31.

Narita – Hong Kong increase from 3 weekly to 1 daily with A320-200. *2015/Feb/1 - 21.
JW311 NRT 0855 – 1310 HKG 32A Mo
JW311 NRT 0735 – 1150 HKG 32A Tu
JW311 NRT 0805 – 1220 HKG 32A We/Fr
JW311 NRT 0930 – 1345 HKG 32A Th
JW311 NRT 0825 – 1240 HKG 32A Sa
JW311 NRT 0855 – 1310 HKG 32A Su
JW312 HKG 1410 – 1900 NRT 32A Mo
JW312 HKG 1245 – 1730 NRT 32A Tu
JW312 HKG 1320 – 1805 NRT 32A We/Fr
JW312 HKG 1445 – 1930 NRT 32A Th
JW312 HKG 1340 – 1825 NRT 32A Sa
JW312 HKG 1410 – 1900 NRT 32A Su

Narita – Hong Kong increase from 1 to 2 daily with A320-200. *2015/Feb/21 - Mar/28.
JW311 NRT 0855 – 1310 HKG 32A Mo
JW311 NRT 0735 – 1150 HKG 32A Tu
JW311 NRT 0805 – 1220 HKG 32A We/Fr
JW311 NRT 0930 – 1345 HKG 32A Th
JW311 NRT 0825 – 1240 HKG 32A Sa
JW311 NRT 0855 – 1310 HKG 32A Su
JW315 NRT 2100 – 0155(+1) HKG 32A Mo
JW315 NRT 2055 – 0135(+1) HKG 32A Tu
JW315 NRT 2055 – 0115(+1) HKG 32A We/Th/Fr/Sa/Su
JW310 HKG 0200 – 0645 NRT 32A Mo/Fr/Sa/Su *From 2015/Feb/22.
JW310 HKG 0220 – 0705 NRT 32A Tu/We/Th *From 2015/Feb/22.
JW312 HKG 1410 – 1900 NRT 32A Mo
JW312 HKG 1245 – 1730 NRT 32A Tu
JW312 HKG 1320 – 1805 NRT 32A We/Fr
JW312 HKG 1445 – 1930 NRT 32A Th
JW312 HKG 1340 – 1825 NRT 32A Sa
JW312 HKG 1410 – 1900 NRT 32A Su

"Demand for travel from Hong Kong to Japan is very strong. It's been showing double-digit growth, and there is a 20% increase so far this year compared to last year, with the total number probably falling around 800,000 passengers. On the other hand, the number of travelers from Japan to Hong Kong was 1.2 million in 2012, but decreased to 1 million in 2013. I think we can contribute in bringing that figure up," said Tomonori Ishii, President of Vanilla Air. "Our target load factor is 80%. Regarding distribution channels, we expect 80% would be sold directly by us, while the remaining 20% would be through travel agencies. The latter is especially important during off-peak periods. We're also improving our smartphone application," he added.

The fledgling Narita-based carrier becomes the first LCC to serve Hong Kong from the airport. The Tokyo – Hong Kong market remained unpenetrated by LCCs until November 2013, when Hong Kong Express Airways [UO/HKE] (d.b.a. HK Express) launched Tokyo/Haneda [HND/RJTT] – Hong Kong. All Nippon Airways [NH/ANA] operates two daily from Narita and one from Haneda, Japan Airlines [JL/JAL] flies one each from Haneda and Narita, and Cathay Pacific Airways [CX/CPA] operates five from Narita and two from Haneda. Delta Air Lines [DL/DAL] ended their single daily Narita service on October 24th. But now, HK Express is adding a second Haneda flight from November 18th as well as a Narita flight from December 8th, and ANA is launching a second Haneda flight from December 20th (ANA adds Haneda – Hong Kong midnight flight.).

In other news, Vanilla Air is starting to see improved load factors. Their September load factors for international was 87.5% (37,818 out of 43,200 seats) and domestic stood at 87.8% (80,572 out of 91,800 seats), just a few points lower than their record 90.1% (40,238 out of 44,640 seats) and 92.1% (96,946 out of 105,220 seats), respectively, for August, the peak summer vacation travel season in Japan. Their load factors before that were 83.3% for international (36,680 out of 44,280 seats) and 77.5% for domestic (79,491 out of 102,592 seats) in July, when they launched Amami [ASJ/RJKA] service (Vanilla Air launches Narita – Amami.), and 72.7% (31,388 out of 43,200 seats) and 58.7% (32,622 out of 55,600 seats), respectively, in June.

The next city on Vanilla Air's plans is Kaohsiung [KHH/RCKH], Taiwan's second largest city, to be added on February 1st next year (Vanilla Air works out details for Hong Kong and Kaohsiung.).

Reference: Aviation Wire, September 30th. (in Japanese)
Reference: Aviation Wire, October 31st. (in Japanese)
Reference: Aviation Wire, November 2nd. (in Japanese)

Vanilla Air works out details for Hong Kong and Kaohsiung.

On September 10th, Vanilla Air (JW/VNL) announced the timetable for their new routes from the Tokyo/Narita (NRT/RJAA) hub to Hong Kong (HKG/VHHH) and Kaohsiung (KHH/RCKH) (Vanilla Air announces Hong Kong and Kaohsiung.), which will be commenced from November 2nd, 2014 and February 1st, 2015, respectively.

Airbus A320-216(SL) JA01VA at Narita. Three brand-new sharklet-equipped A320s will be delivered between September and November, allowing them to phase-out the 166-seat secondhand former ANA A320s. Two more will be delivered in early 2015 to allow for the Hong Kong frequency increase and Kaohsiung inauguration. (Photo: Vanilla Air)

The wholly-owned LCC subsidiary of ANA Holdings, parent of All Nippon Airways (NH/ANA), will start Hong Kong service with three weekly round-trips, which will gradually be increased to daily from February 1st and double daily from February 21st. One of the two daily will be a red-eye flight. Meanwhile, the Kaohsiung route will be served daily from February 1st. It will be the second destination Vanilla Air serves in Taiwan after Taipei/Taoyuan (TPE/RCTP).

"Japan is seeing a growing number of tourists from Asia. Visitor numbers from Hong Kong and Taiwan have been recording the month's highest for 18 months in a row, and we're very pleased to announce the new routes. As the first LCC serving the two cities from Narita, my heart is filled with new ambitions," said Tomonori Ishii, President of Vanilla Air.

Flight Schedule:
Narita – Hong Kong NEW 3 weekly with A320-200.
JW311 NRT 0750 – 1150 HKG 32A Tu *2014/Nov/2 - Dec/31.
JW311 NRT 0945 – 1345 HKG 32A Th *2014/Nov/2 - Dec/31.
JW311 NRT 0910 – 1310 HKG 32A Su *2014/Nov/2 - Dec/31.
JW311 NRT 0735 – 1150 HKG 32A Tu *2015/Jan/1 - 31.
JW311 NRT 0930 – 1345  HKG 32A Th *2015/Jan/1 - 31.
JW311 NRT 0855 – 1310 HKG 32A Su *2015/Jan/1 - 31.
JW312 HKG 1245 – 1740 NRT 32A Tu *2014/Nov/2 - Dec/31.
JW312 HKG 1445 – 1940 NRT 32A Th *2014/Nov/2 - Dec/31.
JW312 HKG 1410 – 1905 NRT 32A Su *2014/Nov/2 - Dec/31.
JW312 HKG 1245 – 1730 NRT 32A Tu *2015/Jan/1 - 31.
JW312 HKG 1445 – 1930 NRT 32A Th *2015/Jan/1 - 31.
JW312 HKG 1410 – 1900 NRT 32A Su *2015/Jan/1 - 31.

Narita – Hong Kong increase from 3 weekly to 1 daily with A320-200. *2015/Feb/1 - 21.
JW311 NRT 0855 – 1310 HKG 32A Mo
JW311 NRT 0735 – 1150 HKG 32A Tu
JW311 NRT 0805 – 1220 HKG 32A We/Fr
JW311 NRT 0930 – 1345 HKG 32A Th
JW311 NRT 0825 – 1240 HKG 32A Sa
JW311 NRT 0855 – 1310 HKG 32A Su
JW312 HKG 1410 – 1900 NRT 32A Mo
JW312 HKG 1245 – 1730 NRT 32A Tu
JW312 HKG 1320 – 1805 NRT 32A We/Fr
JW312 HKG 1445 – 1930 NRT 32A Th
JW312 HKG 1340 – 1825 NRT 32A Sa
JW312 HKG 1410 – 1900 NRT 32A Su

Narita – Hong Kong increase from 1 to 2 daily with A320-200. *2015/Feb/21 - Mar/28.
JW311 NRT 0855 – 1310 HKG 32A Mo
JW311 NRT 0735 – 1150 HKG 32A Tu
JW311 NRT 0805 – 1220 HKG 32A We/Fr
JW311 NRT 0930 – 1345 HKG 32A Th
JW311 NRT 0825 – 1240 HKG 32A Sa
JW311 NRT 0855 – 1310 HKG 32A Su
JW315 NRT 2100 – 0155(+1) HKG 32A Mo
JW315 NRT 2055 – 0135(+1) HKG 32A Tu
JW315 NRT 2055 – 0115(+1) HKG 32A We/Th/Fr/Sa/Su
JW310 HKG 0200 – 0645 NRT 32A Mo/Fr/Sa/Su *From 2015/Feb/22.
JW310 HKG 0220 – 0705 NRT 32A Tu/We/Th *From 2015/Feb/22.
JW312 HKG 1410 – 1900 NRT 32A Mo
JW312 HKG 1245 – 1730 NRT 32A Tu
JW312 HKG 1320 – 1805 NRT 32A We/Fr
JW312 HKG 1445 – 1930 NRT 32A Th
JW312 HKG 1340 – 1825 NRT 32A Sa
JW312 HKG 1410 – 1900 NRT 32A Su

Narita – Kaohsiung NEW 1 daily with A320-200.
JW121 NRT 1145 – 1520 KHH 32A Daily *2015/Feb/1 - Mar/28.
JW122 KHH 1600 – 2025 NRT 32A Daily *2015/Feb/1 - Mar/28.

The Narita – Hong Kong route is currently only served by full-service carriers (FSCs) including ANA, Cathay Pacific Airways (CX/CPA), Delta Air Lines (DL/DAL) (final service on October 24th), and Japan Airlines (JL/JAL), however, Hong Kong-based LCC Hong Kong Express Airways (UO/HKE) (d.b.a. HK Express) runs a daily round-trip to and from Haneda (HND/RJTT), Tokyo's preferred airport, and plans are underway to launch a daily Narita service from March next year.

Vanilla Air's one-way fares to Hong Kong will start from 8,000 JPY and Kaohsiung from 7,000 JPY, excluding processing and airport fees. Reservations will start tomorrow at 1400 JST September 11th. With the new routes, the fledgling LCC's network will grow to four international and three domestic destinations. Other cities under consideration include Guam, Macau, Saipan, and Taichung.

Reference: Vanilla Air, September 10th. (in Japanese)

Vanilla Air announces Hong Kong and Kaohsiung.

On August 7th, Vanilla Air (JW/VNL) announced that they will launch Hong Kong (HKG/VHHH) in November and Kaohsiung (KHH/RCKH) in February 2015, from their hub at Tokyo/Narita (NRT/RJAA). President Tomonori Ishii reported in a press conference held in Tokyo.

Airbus A320-216(SL) JA01VA taxies for departure from Sapporo's New Chitose on a sunny winter day. (Photo: Vanilla Air)

The Hong Kong route will initially operate with three weekly round-trips, increasing to two daily by March 2015, the end of FY2014. One of the flights will fly on a red-eye schedule. Kaohsiung, which becomes Vanilla's second destination in Taiwan, will see a daily round-trip from the beginning. Details of the timetable along with fares will be released in September.

Network Overview (Oct/26/2014 - Mar/28/2015):
Narita – Amami 1 daily. (no change)
Narita – Hong Kong NEW 3 weekly, to be increased to 2 daily by Mar/2015.
Narita – Kaohsiung NEW 1 daily.
Narita – Okinawa/Naha up to 2 daily. (no change)
Narita – Sapporo/New Chitose from 5 to up to 4 daily. (reduction)
Narita – Seoul/Incheon from 2 to 1 daily. (reduction) 
Narita – Taipei/Taoyuan from 1 to 3 daily. (increase)

The wholly-owned subsidiary LCC of ANA Holdings, parent of All Nippon Airways (NH/ANA), currently operates three brand-new 180-seat Airbus A320s and three secondhand 166-seat A320s provided by sister ANA. The latter three will be replaced by three factory-fresh examples between September and November, while another two will be delivered in early 2015, bringing the fleet to eight.

In recent interviews, Mr. Ishii had revealed that other cities under consideration include Guam, Macau, Saipan, and Taichung. Vanilla's June load factor saw 58.7% for domestic and 72.7% for international flights. For the latter, Taiwan is doing particularly well seeing around 80%, while Korea is declining, due to continued political tensions between the two countries, and not made better by the ferry disaster in April, which prompted many Koreans to cancel trips and refrain from travelling for leisure for the remainder of the year. As for the former, they still haven't been able to make Narita work as a domestic airport.

Reference: Aviation Wire, August 1st. (in Japanese)
Reference: Aviation Wire, August 7th. (in Japanese)

Vanilla Air launches Narita – Amami.

On July 1st, Vanilla Air (JW/VNL) launched Tokyo/Narita (NRT/RJAA) – Amami (ASJ/RJKA), becoming the first LCC to serve the leisure resort island situated in the Amami Archipelago between Kyushu and Okinawa. The first out-bound flight, JW821, operated by Airbus A320-216(WL) JA01VA touched down at Amami at 1309 JST, 14 minutes behind schedule, carrying 166 passengers. It was greeted by a water-cannon salute.

Airbus A320-216(SL) JA01VA prepares to depart Amami back to Narita. (Photo: Aviation Wire)

Flight schedule (July 1st - August 31st):
JW821 NRT 1030 – 1255 ASJ 32A/320 Daily
JW822 ASJ 1410 – 1630 NRT 32A/320 Daily
 
Flight schedule (September 1st - 30th):
JW821 NRT 1450 – 1715 ASJ 32A/320 Daily
JW822 ASJ 1755 – 2015 NRT 32A/320 Daily
 
Flight schedule (September 30th - October 25th):
JW821 NRT 0815 – 1055 ASJ 32A/320 Daily
JW822 ASJ 1130 – 1340 NRT 32A/320 Daily

The return flight, JW822, departed Amami at 1407, three minutes early, with a load of 55 passengers. Although the assigned aircraft could seat up to 180, Vanilla Air caps its flights at 166 due to their mixed fleet of 180-seat new and 166-seat secondhand (Vanilla Air's 'LOHACO Jet' enters service.) machines. All three of the latter, sourced from sister All Nippon Airways (NH/ANA), will be replaced by brand-new 180-seat A320s between September and November this year.

President Tomonori Ishii thanked the locals saying "I'm very happy. We decided on the launch only four months after we restarted (Vanilla Air launches operations.), but the Governor of Amami as well as the locals put a lot of effort and I've felt it. Reservations are coming along." He told reporters "Our target load factor is 80%. We believe there's a potential demand," citing the island's wide range of available outdoor leisure activities including sports camps, surfing, diving, snorkeling, and fishing. The fledgling LCC also targets the estimated 200,000 people of Amami-origin living in the Kanto (Greater Tokyo) region.

Speaking about the flight cancellations due to the shortage of pilots (Vanilla Air cancels 154 flights in June due to pilot shortage.), Mr. Ishii apologized "We are very sorry for that. We'll have a stable operation from July onwards. We're putting more resources to recruiting."

The Government of Japan and the Prefectural Government of Kagoshima together agreed to allocate 2.7 billion JPY under Amami Archipelago Promotion Fund effective April 1st, where financial support will be provided to businesses that help boost economy in the islands, and Vanilla Air's once-daily service also operates under this scheme. Located approximately 380 kilometers (240 miles) south of the southern tip of Kyushu and 250 kilometres (160 miles) north of Okinawa, Amami Oshima (which translates to Amami Big Island) is an island of volcanic origin with a humid subtropical climate. Its coasts are surrounded by coral reefs. 

Until this day, Amami had been served only by Japan Airlines' (JL/JAL) group; JAL Express (JC/JEX) operates one daily each from Osaka/Itami (ITM/RJOO) and Tokyo/Haneda (HND/RJTT) with Boeing 737-800s, while Japan Air Commuter (3X/JAC) links Fukuoka (FUK/RJFF), Kagoshima (KOJ/RJFK), Kikai (KKX/RJKI), Okinoerabu (OKE/RJKB), Tokunoshima (TKN/RJKN), and Yoron (RNJ/RORY) with Bombardier DHC-8-400Qs and Saab SF340s. Ryukyu Air Commuter (RAC) flies to Okinawa/Naha (OKA/ROAH). Amami has not escaped the radar of newcomers, however, as Skymark Airlines (BC/SKY) in 2010 and 2011 briefly operated seasonal service to and from Kagoshima, which has not resumed since. 

In the long run, Vanilla Air intends to direct 70% of its routes to overseas, meaning less emphasis on the domestic market. From its small base at Narita, the wholly-owned subsidiary of ANA Holdings currently flies to Okinawa/Naha (OKA/ROAH), Sapporo/New Chitose (CTS/RJCC), Seoul/Incheon (ICN/RKSI), and Taipei/Taoyuan (TPE/RCTP) with a fleet of six A320s. China, Guam, Hong Kong, Philippines, and Saipan are being considered, and Mr. Ishii quoted "Our next destination will probably be an Asian neighbor," though he said plans have not materialized yet.

Reference: Aviation Wire, July 1st. (in Japanese)

Vanilla Air targets CASK of below 7 JPY in 2016.

As Vanilla Air (JW/VNL), a wholly-owned subsidiary of ANA Holdings, continues to improve results, it is also working hard to make cost-cutting measures to reach a CASK (Cost of Available Seat-Kilometer) of under 7 JPY by 2016. Aviation Wire's recent interview of President Tomonori Ishii revealed some of his ambitions and progresses.

The tail and sharklet of Airbus A320-216(SL) JA01VA. (Photo: Aviation Wire)

The Tokyo/Narita (NRT/RJAA)-based LCC's most recent load factors in March saw 80.6% for international, which include Seoul/Incheon (ICN/RKSI) and Taipei/Taoyuan (TPE/RCTP), and 78.0% for domestic flights, which include Naha/Okinawa (OKA/ROAH) and Sapporo/New Chitose (CTS/RJCC). Mr. Ishii, an ANA veteran, is not happy yet, who explains "80% is still not enough for us, especially because of our low prices while still offering a 20-kilogram baggage allowance." Ancillary revenues account for less than 15% of their income, but Vanilla Air plans to launch travel insurance packages as well as advertisement on board to bring that figure up.

Operating only the Airbus A320 but with two different configurations isn't helping either, but they didn't have a choice when building its fleet to match its AirAsia Japan (JW/WAJ) (CoachFlyer JW8541: NRT - FUK on AirAsia Japan's Airbus A320.) days was a priority. While their first three seat 180 and are brand new, the three recently-delivered former All Nippon Airways (NH/ANA) examples retain their 166-seat layout (Vanilla Air's 'LOHACO Jet' enters service.) and are also one of the oldest ranging from 22 to 23 years old. These are stopgap measures, and Vanilla Air will take delivery of three new examples between September and November this year to replace them. While load factors went up and flight completion rate improved to 99.4%, on-time arrival rate was 72.7% for March, again the worst among Japanese airlines. A standardized fleet should help that. A fleet of eight is planned by March 2015, and will be increased to 10 by March 2016.

Mr. Ishii is bullish that they would be able to reduce CASK to under 7 JPY sometime in 2016. Full service carriers ANA and Japan Airlines (JL/JAL) are at 12.9 JPY and 11.5 JPY, respectively (as of April 2013), while Skymark Airlines (BC/SKY) is at 8.4 JPY and Vanilla Air also with a similar figure, and Peach Aviation (MM/APJ) is thought to be around 9 to 10 JPY. All of Vanilla Air's staff help out at flight bank times at Narita, and they try to do everything in-house as much as possible. Turning unused lights off a its headquarters in Narita's Terminal 2 doesn't contribute much to the bottom line, however, Mr. Ishii enthuses "What's important is that low-cost-mindedness." He adds, "Many of our cost-cutting initiatives come from our employees."

Regarding route network, Amami (ASJ/RJKA) will be launched on July 1st (Vanilla Air announces Amami Oshima.), making it the first all-new route after being re-launched as Vanilla Air. Mr. Ishii admits that there would be initial start-up costs there, as the JAL Group has been the only carriers serving the airport. Work is underway for ETOPS (Extended Twin-Engined OPerationS) rating to enable them to launch Guam and possibly Saipan as well. China, including Hong Kong, and the Philippines are also being considered.

Source: Aviation Wire, May 12th. (in Japanese)
Source: Aviation Wire, May 13th. (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 JW8541: NRT - FUK on AirAsia Japan's Airbus A320.

Travel date: October 2013
Flight: JW8541
Route: Tokyo/Narita (NRT/RJAA) - Fukuoka (FUK/RJFF) 
Carrier: AirAsia Japan (JW/WAJ)
Aircraft: Airbus A320-214 JA02AJ
Class: Economy
Direct distance: 942 km (585 miles)
Flight time: 1 hour 33 minutes

Years 2012-2013's advent of low-cost carriers (LCCs) at Tokyo/Narita (NRT/RJAA) brought changes to transportation and accommodations as well; one-way 1,000JPY airport buses now frequent the Narita Airport - Tokyo Station route and nearby airport hotels have introduced one-night 5,000JPY stays with free airport shuttle service available from 4:30AM, aimed at the LCC passengers. So I and my wife took the opportunity to savor AirAsia Japan (JW/WAJ), the failed joint-venture between Malaysian LCC AirAsia (AK/AXM) and All Nippon Airways (NH/ANA) that was dissolved after merely 10 months in service, in October right before they ceased operations.

AirAsia Japan's domestic check-in counters at Narita. (Photo: Ryosuke Yano)

We hopped on the hotel shuttle bus for the airport at 0530 and arrived just 10 minutes later. All Narita-based LCCs currently operate from Terminal 2. AirAsia Japan's domestic check-in counters were located at the northern end of the building on the arrivals floor. Having checked-in on AirAsia's website two days before and with no baggage to check-in, we were told that we can move on to security. For AirAsia Japan's international flights, check-in counters were in the main departures hall. 0640 was our boarding time for our flight JW8541, service to Fukuoka (FUK/RJFF), so with ample time, we decided to stroll around the hall, but after only finding a single convenience store open at this time, we decided to proceed through security at 0600. At the time of traveling, AirAsia Japan had already started winding down and had only three domestic flights per day, two to Fukuoka and one to Sapporo/New Chitose (CTS/RJCC), so there was no line anywhere and everything was hassle-free. There were actually more staff on site than the number of passengers.

The deserted Red Base. (Photo: Ryosuke Yano)

Dubbed 'Red Base', the low-cost terminal used exclusively by AirAsia Japan had been envisioned to become the main hub for AirAsia's Japanese unit. Seeing just a few passengers and a single flight departing this morning, the view of the still new terminal certainly looked sad, especially when you're used to seeing the other bustling AirAsia hubs of Kuala Lumpur (KUL/WMKK), Bangkok/Don Mueang (DMK/VTBD), or Jakarta/Soekarno-Hatta (CGK/WIII). In the terminal was AirAsia Cafe, selling snacks, light meals, beverages, souvenirs, and AirAsia-branded merchandise. Products purchased here are allowed for consumption on board. Narita's current temporary LCC facilities are expected to be replaced in early 2015 by a permanent structure LCC terminal with 14 parking spots. Boarding started on time at Red Base's Gate M starting from handicapped passengers and pregnant mothers, though there were none, followed by Hot Seat (first five rows of seats with more legroom) passengers, though none again. Outside waited a bus that would take us to the remote LCC parking spot and eight minutes later we were on our way to our aircraft.

AirAsia Cafe at Narita. (Photo: Ryosuke Yano)

AirAsia Japan used the northernmost parking spots along with rival Jetstar Japan (GK/JJP), partly-owned by Japan Airlines (JL/JAL). We came to spot 100F, where JA02AJ, the airline's second Airbus A320 and also the first aircraft in the AirAsia group to wear the new billboard-style livery, was waiting for us. We found our seats at 6A and 6B, and the door was closed at 0654 with a very light load of just 27 passengers and a crew of six on board the 180-seat Airbus. At 0703, push-back was started by ANA's ground-handling, and we were moving on our own at 0709. Taxiing to so-called 'Runway C', we rotated from Runway 34R at 0713, then banking to the right heading east then banking right again heading south along the coast of Chiba prefecture. The seat-belt signs were turned off at 0720 and the crew commenced their in-flight services at 0730. We had pre-ordered a meal each for the two of us; an Asian Meal Bibimbap for 680JPY and a Beef Hamburg Steak With Tomato Sauce for 750JPY. Although not big in proportions, both satisfied our taste buds. Beverages were a bit pricey; a cup of coffee with ice at 200JPY and 350mL canned drinks offered at around 200JPY. Former JAL subsidiary TFK, which also prepares food for over 40 other carriers at Narita and Haneda, including rival Jetstar Japan, handled catering for AirAsia Japan.

Boarding JW8541. Airbus A320-214 JA02AJ. (Photo: Ryosuke Yano)

Our base fare for this flight was 5,080JPY per person, which was booked three months in advance. As AirAsia updates fares depending on demand, this price didn't change until a few days before the flight. Adding 300JPY enabled you to pick a seat in advance and a 1,200JPY add-on would entitle you to a Hot Seat. A 200JPY processing fee was charged per person when paying by credit card. Tokyo to Fukuoka is a heavily traveled route and Haneda - Fukuoka alone (not including Narita - Fukuoka) is the world's seventh busiest air route, according to 2012 statistics. Booking three months in advance, both ANA and JAL offered around 11,000 to 17,000JPY one-way depending on the time of the day (rising to 36,000JPY for last-minute purchases) on Boeing 777s and 767s with 18 and 17 round-trips respectively, while Skymark Airlines (BC/SKY) offered 10,000JPY one-way on Boeing 737-800s 11 times daily, and Starflyer (7G/SFJ) offered 10,970JPY one-way on Airbus A320s flying 10 round-trips. On the Narita - Fukuoka route, competitor Jetstar Japan offered four or five round-trips a day with a base fare of 5,590JPY plus a 300JPY processing fee. So AirAsia Japan, though with only two daily round-trips, had indeed the lowest fare in the market.

JW8541's load for this day was 27 passengers. (Photo: Ryosuke Yano)

At 0738, Captain Sakamoto made his announcement welcoming passengers and that Mt. Fuji was visible on our left. He made another seven minutes later telling we were flying over Nagoya. It was a clear day and most of the ground was visible, until near Osaka when clouds below started to obstruct our view. Soon, lights in the cabin were dimmed and most of the passengers were taking a nap, as it had been an early day's start. I took the opportunity to walk around the cabin, take a few shots, and chat with the cabin crew. After a smooth cruise, at 0820 the crew started collecting any trash remaining, and gradual descent started two minutes later. Seat-belt signs were turned on at 0835 and as our aircraft approached from the north side of Fukuoka, gears were lowered at 0844. With its proximity to downtown, this approach to Fukuoka might remind some of Hong Kong's old airport Kai Tak. Buildings in the city have a height restriction depending on the distance from the airport, and a curfew of 7AM to 10PM has limited the number of flights. Flying right above the buildings of the city, we touched down on Runway 16 at 0846, for a total flight time of one hour and 33 minutes. We taxied to Gate 13 in Terminal 1 for an 0850 arrival, 15 minutes ahead of schedule. It was a flawless flight, and enjoyable as well.

Beef Hamburg Steak With Tomato Sauce. (Photo: Ryosuke Yano)

For the staff, it must have been a roller-coaster two years. When AirAsia Japan was launched in August 31, 2011, gathered under the red banner were people with various backgrounds; some had quit the incumbents for a new career, while others had never had any experience with an airline. After a year of training at AirAsia's headquarters in Malaysia together with rigorous but exciting preparations, the airline only took off on August 1st, 2012, and JW8541 was their maiden flight. Japanese media covered the LCCs well, however, they were also quick to be strong critics, initially making LCCs synonymous with hasty service, delays, cancellations, and safety violations; flight attendants couldn't finish in-flight service, targeted turnaround times couldn't be met also due to the use of congested airports, flights were delayed and some Jetstar Japan and AirAsia Japan flights couldn't arrive back at Narita before the curfew, thus effecting next day's schedule, and Jetstar Japan had allowed some mechanics that did not meet the airline's internal standards to work. So though marking a load factor of 84.4% in August, AirAsia Japan recorded 68.3% for September, 56.9% for October, and 55.9% for November, well below the targeted 80%. During the same period, Jetstar Japan recorded 85.6%, 76.7%, 69.4%, and 64.9%, respectively. Jestar Japan provided more discount opportunities than AirAsia Japan, which helped loads, but kept yields low.

Asian Meal Bibimbap, served only on AirAsia Japan. (Photo: Ryosuke Yano)

Realizing they were falling behind the competition, AirAsia Japan started making changes in December 2012. Although both ANA veterans, CEO Kazuyuki Iwakata was replaced by Yoshinori Odagiri, and the number of executives was reduced from 10 to seven, aimed at quicker decision-making. AirAsia Japan made payments possible at Japan's ubiquitous convenience stores (420JPY charge), teamed up with travel agency BigHoliday to produce AirAsia Holidays all-inclusive packages, and abolished the 1,000JPY counter check-in fee. AirAsia Japan also wanted to reduce AirAsia's strict 45-minute check-in cut-off time to 30 minutes, with rival Jetstar Japan at 30 minutes, Peach Aviation (MM/APJ) at 25 minutes, Skymark at 20 minutes, and both ANA and JAL at 15 minutes, but that never came to fruition. Some staff admitted that the CEO had 'a difficult time' balancing out AirAsia's interests with that of ANA's. In the meantime, staff were gaining more experience, trying harder, and performing better. On March 31st, 2013, AirAsia Japan launched Nagoya/Chubu Centrair (NGO/RJGG) operations, designating the city its second hub.

Mt. Fuji in the upper left. (Photo: Ryosuke Yano)

But as though those efforts weren't enough, on June 10th, news circulated that AirAsia and ANA would dissolve the joint-venture. ANA Holdings chief Shinichiro Ito visited the Red Base the following day, assuring anxious staff that all of AirAsia Japan's jobs would be secure no matter what happens. An official announcement of the divorce was made on June 25th. Various rumors of AirAsia Japan's fate spread, including a merger with Peach, or a complete shut-down. But in times of uncertainty, the staff continued to serve with a smile, work hard, yet trying to maintain a fun mood. And on August 20th, 2013, ANA Holdings announced that AirAsia Japan would be relaunched as Vanilla Air.

JW8541's cheerful flight attendants. (Photo: Ryosuke Yano)

Peach, the so-far most successful Japanese LCC partially-owned by ANA, was unenthusiastic about absorbing AirAsia Japan's operations. Peach entered the Tokyo market with two Osaka/Kansai (KIX/RJBB) - Narita round-trips starting in October 2013, however, they made it clear that they don't intend to make any highly-regulated airport a hub. For ANA, closing down AirAsia Japan and completely pulling out of the LCC scene at Narita was also a choice, but that would have meant that ANA is giving up the pie to Jetstar Japan, minority-owned by JAL, an expanding Skymark, and possible future competitors like Spring Airlines Japan. Thus Vanilla Air, as an inevitable consequence, was born.

JA02AJ departing Fukuoka back to Narita. (Photo: Ryosuke Yano)

Of AirAsia Japan's 400 staff, approximately 30 who wished to continue working with the AirAsia brand moved to Malaysia, mostly to fly international with AirAsia X (D7/XAX), the group's medium-to-long-haul LCC, while most have chosen to work with Vanilla Air, now 100%-controlled by ANA. AirAsia Japan ceased operations under the AirAsia brand on October 26th, 2013, and re-launched flights as Vanilla Air on December 20th.

Whether AirAsia can come back to the world's third largest market is unsure, but for now, farewell AirAsia Japan. Wishing good luck to all involved!