Wednesday, October 8, 2014

ANA to launch domestic Wi-Fi product in FY2015.

On October 8th, All Nippon Airways (NH/ANA) announced that they will launch in-flight internet connectivity for domestic services in FY2015. Japan's largest carrier eventually plans to have approximately 100 aircraft, including Boeing 777s, 787s, and many other aircraft with over 100 seats, offering the new product.
Boeing 777-381/ER JA733A taxies at Narita. (Photo: Ryosuke Yano)

Flights from Tokyo/Haneda (HND/RJTT) to Fukuoka (FUK/RJFF), Okinawa/Naha (OKA/ROAH), Osaka/Itami (ITM/RJOO), and Sapporo/New Chitose (CTS/RJCC) would be the first to see the service, naturally. Details of the providing firm along with prices would be released in due course.

Branded 'ANA WiFi Service', ANA already offers in-flight internet connection on selected international flights on selected days (ANA to offer in-flight Wi-Fi for international from March.), with retrofitting of 19 Boeing 777-300ERs and nine 767-300ER to be completed by March 2015. 32 additional international-configured aircraft, mostly expected to be 787s, will receive the upgrade in FY2015. Service is provided by SITA subsidiary OnAir, formerly a joint-venture with Airbus.

ANA comes late, as archrival Japan Airlines (JL/JAL) has been offering domestic in-flight Wi-Fi since July (JAL SKY Wi-Fi to be launched on July 23rd.) and is well underway in retrofitting 77 aircraft by mid-2016, while Skymark Airlines (BC/SKY) also commenced service on board their all-premium Airbus A330s in August (Skymark to offer free Wi-Fi on Airbus A330.). JAL provides the service at a cost, while Skymark offers it free of charge.

Reference: All Nippon Airways, October 8th. (in Japanese)
Reference: Aviation Wire, October 8th. (in Japanese)

Saturday, October 4, 2014

Spring Japan eyes Sapporo and China in 2015.

Spring Airlines Japan's (IJ/SJO) Chairman Wang Wei revealed that the fledgling Tokyo/Narita (NRT/RJAA)-based LCC is planning two to four international routes to China in 2015, in an interview by Traicy. For domestic, Sapporo/New Chitose (CTS/RJCC) is the next city being considered, to connect with Spring Airlines' (9C/CQH) link from Shanghai/Pudong (PVG/ZSPD) to the capital of Hokkaido, which will be launched on October 26th, 2014.
Spring Airlines Japan's first aircraft Boeing 737-81D(WL) N272LM/JA01GR at King County 'Boeing Field'. It is leased from AWAS. (Photo: Rick Schlamp/AirlinersGallery.com)

Regarding the recent decision to cut Narita – Saga (HSG/RJFS) to a single round-trip (Spring Japan reduces schedule for Winter 2014/2015.), the airline told that from Winter 2014/2015, Narita only allowed for a slot that would make an arrival into Saga within 10 minutes of an All Nippon Airways (NH/ANA) flight from Tokyo/Haneda (HND/RJTT) and a departure time within 20 minutes of ANA's return leg. Saga is equipped with one jet-bridge each for domestic and international, and thus only has one security check-point and one waiting area per jet-bridge, and the airport authorities deemed it difficult to handle two Tokyo-area-bound flights at the same time.

Mr. Wang reiterates that they would like to bring the Saga service back to two flights as soon as they can get favorable slot times. For August, the route saw a load factor of 60.1%, which Mr. Wang views as "not bad for a young airline like us," though he admits that "We need to become better known and increase our load factors." Meanwhile, reliability also has to be worked on, as from August 1st through September 21st, Spring Airlines Japan's Saga route saw seven cancellations and a dozen delays of over one hour, while ANA's link to Haneda saw zero cancellations and nine delays, even with five daily round-trips, which is three more than Spring.

For the time being when only two Boeing 737-800s are needed to run the entire schedule, their third will be used as back-up equipment and for crew training. "We have no problem as our plan for winter only called for two airplanes in the first place," said Mr. Wang. Spring Airlines Japan is the Japanese unit of China's first LCC, and only began operations on August 1st (Spring Airlines Japan commences operations.).

Reference: Saga Shimbun, September 26th. (in Japanese)
Reference: Traicy, September 28th. (in Japanese)

Friday, October 3, 2014

Skymark hopes to settle Airbus A380 penalty in October.

On October 2nd, Skymark Airlines (BC/SKY) admitted a report by Nikkei Shimbun which said Japan's third largest carrier and Airbus have started talks for a settlement for the canceled Airbus A380 order (Skymark's Airbus A380 order in jeopardy.). Representatives from both sides, including Skymark's President and CEO Shinichi Nishikubo and senior officials of the European planemaker, met in France on September 29th for the first time after the termination of the order.
Airbus A380-841 F-WWSL/JA380A takes off from Toulouse. Rumors have it that Airbus has found a buyer for the first two A380s that had been destined for Skymark, leading to eased talks. Who's buying them? (Photo: Airbus)

On July 29th, Airbus unilaterally axed the contract for six A380s worth more than 2 billion USD at list prices after Skymark stopped making installment payments from April. It subsequently demanded the Japanese carrier pay a penalty estimated at 700 million USD (76 billion JPY), or come under the umbrella of a major carrier. In turn, Skymark said that Airbus was demanding an unreasonable cancellation fee.

During the new talks, the two agreed to reach a settlement by the end of October. According to Skymark, Airbus would consider the financial state of the troubled airline in discussing the penalty so that it can remain a listed company on the Tokyo Stock Exchange. It currently operates four A330s (Skymark Airlines inaugurates Airbus A330 service.) with another six to be delivered by September 2015, and though these are leased from Intrepid Aviation and not purchased from Airbus, the European planemaker confirmed that Skymark would continue to be a valued customer. News of possible settlement sent Skymark's shares up 11% on October 2nd, after the stock had lost nearly a third since the issue came to light in July.

Meanwhile, Skymark denied an Asahi Shimbun report that claimed both parties had reached a deal in principle, with the cancellation fee limited to somewhere between 20 to 23 billion JPY and that it would be paid from the already-made prepayments amounting to 26.5 billion JPY. Contractually, Airbus does not need to refund this, and penalties would come on top of this figure. The article claims that Airbus has found a buyer for the first two A380s (Skymark's first Airbus A380 completes maiden flight.) which were earmarked for Skymark, leading to easing the penalties. Skymark vehemently denied this, and stressed that talks have just commenced and no details of the settlement have been agreed on yet.

In July, Skymark had posted a staggering 5.7 billion JPY net loss for just the first quarter of FY2014, more than triple the amount they lost for the whole year of FY2013 (Skymark posts 5.7 billion JPY loss for 1Q FY2014.). Their cash reserves and near-term assets had declined to 7.2 billion JPY as of June, and the A380 penalty, depending on the figure, could force them into insolvency. However, if the above report turns out to be true, that could be avoided. Meanwhile, talks are well underway with various firms for potential investment and capital injection, but none will go ahead without knowing how big (or small) the penalty is. In any case, the industry is moving on and competition will only get more fierce, and Skymark's settlement with Airbus would only be their first step to get themselves back on track.

Reference: Aviation Wire, October 2nd. (in Japanese)
Reference: Asahi Shimbun, October 3rd. (in Japanese)
Reference: Nikkei Shimbun, October 3rd. (in Japanese)

Thursday, October 2, 2014

Vanilla Air unveils new interior with latest Airbus A320.

On October 1st, Vanilla Air (JW/VNL) introduced its newest aircraft, Airbus A320-216(SL) JA04VA, on flight JW805, service from Tokyo/Narita (NRT/RJAA) to Okinawa/Naha (OKA/ROAH). The aircraft had only arrived at Narita from Toulouse (TLS/LFBO) on September 28th. This fourth new machine in the fleet boasts not only the fledgling carrier's full livery, but also an all-new interior.
Brand-new Airbus A320-216(SL) JA04VA parked at Narita. (Photo: Vanilla Air)

Currently, Vanilla Air operates six aircraft, of which three are secondhand examples leased from sister company All Nippon Airways (NH/ANA) and seat 166, retaining ANA's interior. And though the first three are brand-new and seat 180, as they were earmarked for their predecessor AirAsia Japan (Mk I) (JW/WAJ), they basically retain the AirAsia interior (CoachFlyer JW8541: NRT - FUK on AirAsia Japan's Airbus A320.) with just the titles covered. So the fourth airplane becomes the first aircraft tailored for Vanilla Air inside and out.

Seats and carpets boast a dark blue color to resemble the sea, with walls and overhead bins boasting yellow to represent the sun. Seat belts are in light blue. Designed by Italian aerospace firm Geven, the new slim seats will be taken up by all future deliveries starting from JA04VA. Their fifth factory-fresh example will arrive in October, with the sixth to be delivered in November, allowing Vanilla Air to retire the three aging 166-seat odd-ball airframes. Two more A320s are to be delivered in early 2015 for a total of eight by the end of fiscal year 2014, with another two to arrive in fiscal year 2015 for a total of 10.
JA04VA's all-new 180-seat interior was designed by Geven. (Photo: Vanilla Air)

Meanwhile, Vanilla Air reported that its August load factor for domestic routes was 92.1% and for international was 90.1%, giving it a system-wide average of 91.5%, which is a 12.3% improvement over the previous month. Yes, August is summer vacation peak month, however, the figures mean that Vanilla Air is starting to become known. During the period, two flights were canceled by a typhoon, keeping the in-service rate at 99.8%, and on-time arrival rate was 76.7%.

From its base at Narita, Vanilla Air serves Amami (ASJ/RJKA) (Vanilla Air launches Narita – Amami.), Naha, and Sapporo/New Chitose (CTS/RJCC) for domestic, and Seoul/Incheon (ICN/RKSI) and Taipei/Taoyuan (TPE/RCTP) for international. Hong Kong (HKG/VHHH) will be added on November 2nd, followed by Kaohsiung (KHH/RCKH) from February 1st, 2015 (Vanilla Air works out details for Hong Kong and Kaohsiung.). The wholly-owned subsidiary of ANA Holdings, parent of ANA, is also considering Guam, Macau, Saipan, and Taichung.

Reference: Aviation Wire, September 30th. (in Japanese)
Reference: Aviation Wire, October 1st. (in Japanese)

Wednesday, October 1, 2014

JAL Express is merged into JAL.

On October 1st, JAL Express (JC/JEX) merged into parent Japan Airlines (JL/JAL), ending the 17-year history of a carrier which under the slogan 'Safe, casual, and fresh,' set the basis for the current more efficient JAL. JEX eventually operated 41 Boeing 737-800s on domestic routes on behalf of its parent. All aircraft now operate directly under JAL, and repainting of aircraft from 'JAL Express' to 'Japan Airlines' will be completed by 2016.
Boeing 737-846(WL) JA341J in JEX's final crane livery arrives at Misawa on an October afternoon. The titles will gradually be replaced by 'Japan Airlines' titles by 2016. (Photo: Ryosuke Yano)

JEX was originally set up on April 1st, 1997 as a lower-cost subsidiary to take over some of its parent's regional domestic routes. It inaugurated service on July 1st, 1998 from Osaka/Itami (ITM/RJOO) to Kagoshima (KOJ/RJFK) and Miyazaki (KMI/RJFM) using Boeing 737-400s transferred from JAL. Some McDonnell Douglas MD-81s JAL inherited from the merger with Japan Air System (JD/JAS) had a brief spell with JEX between 2005 and 2010, however, with the transferring of its remaining 737-400s to sister Japan Transocean Air (NU/JTA) in 2011, the fleet was standardized on 737-800s.
Boeing 737-446 JA8993 in the 'Arc of the Sun' livery, which was their second color scheme. It was transferred to Japan Transocean Air in August 2011. (Photo: Ryosuke Yano)

Although JEX was originally based at Itami and J-Air (XM/JLJ) at Nagoya/Komaki (NKM/RJNA), JAL's bankruptcy in 2010 and subsequent restructuring led to significant downsizing for mainline, and thus JEX moved its operations to Haneda while Komaki was closed and J-Air moved into Itami. It eventually formed the backbone of JAL's regional domestic network from Haneda, serving more domestic destinations than any other carrier in the JAL Group. JEX's official last flight took place on September 30th.

JEX was a pioneer in many ways, setting the basis for the now lower-cost JAL. The carrier's flight attendants were originally called 'SkyCasts', where they were also responsible for cabin cleaning (mainline JAL hired outside firms just to clean the aircraft at that time) and accomplished 25-minute turnaround times, increasing fleet utilization. It had a family-style, interdisciplinary culture where all professionals worked together to make the passenger experience better and achieve a 20% reduction in overall costs compared to its parent. JEX also became the first Japanese carrier to have a female captain in July 2010.
Boeing 737-446 JA8992 in JEX's original livery. This aircraft now flies with Japan Transocean Air in Sakura Jimbei (Encounter Japan Transocean Air's 'Sakura Jimbei'!) special livery. (Photo: JEX)

Now that JAL has shed a lot of costs, especially during its bankruptcy, JAL employees essentially carry out the same tasks and amount of work that JEX crew do, so presumably, it became unnecessary to keep JEX. Furthermore, the majority of JEX's flight attendants are hired on few-year contracts, so merging that employee base into JAL prevents them from joining other carriers, like the growing LCCs, some of which are facing crew shortages. "The merger stabilizes JAL Group's domestic operations for the long term," said a JAL spokesperson, and this probably means by that. This is similar to what ANA did when they upgraded all contracted employees to full-time staff last year to prevent a 'brain drain'.

From March 27th, 2011, along with J-Air, JEX started operating all flights under the JL code seen from the passengers' eyes, though paper-wise it was a code-share operated by XM and JC, respectively. SkyCasts previously wore a red coat-style uniform, different from mainline JAL, but these too were standardized throughout JAL, JEX, and J-Air in June 2013, with the only noticeable difference being the color of the scarves. So the merger will not be so visible to the normal traveler, but whenever you see a young and cheerful flight attendant on a JAL flight, ask if she worked with JEX. She may give back a big smile. Adieu, JEX.

Monday, September 29, 2014

Solaseed Air bids farewell to the Boeing 737-400.

On September 29th, Skynet Asia Airways (6J/SNJ), doing business as Solaseed Air, retired the Boeing 737-400. The last revenue flight was 6J022, departing Kumamoto (KMJ/RJFT) at 1900 JST and touching down at Tokyo/Haneda (HND/RJTT) at 2022 with a load of 136 passengers, three flight attendants, and two pilots. It was operated by 737-46M JA392K. Passengers were handed out last-flight certificates, magnets, and stickers.
Boeing 737-46Q JA737B at Nagasaki. She became the penultimate 737-400 in the fleet, operating its last flight on September 23rd as 6J034 from Nagasaki to Haneda. (Photo: Ryosuke Yano)

The second variant of the new generation 'Baby Boeing' was the first type to be flown by the airline when they launched operations on August 1st, 2002 as the third child of Japan's deregulation with a Haneda – Miyazaki (KMI/RJFM) service. Skynet Asia has since flown a dozen different 737-400s, operating 10 at peak time between July 2010 and April 2012. However, the introduction of the 737-800 in July 2011, which coincided with their re-branding into Solaseed Air, marked the gradual transition to the Next-Generation 737.
Boeing 737-4Y0 JA391K in Skynet Asia Airways' original livery. It was retired in April 2012. ANA owns a 8.56% minority stake in the Miyazaki-based carrier, but maintains a much greater near-subsidiary influence. (Photo: Ryosuke Yano)

Last year, I had the opportunity to fly on JA737B (CoachFlyer 6J034: NGS - HND on Solaseed Air's Boeing 737.), which was retired six days earlier. With fleet modernization now complete, Solaseed Air's average fleet age will be reduced to just 1.75 years. It operates 11 737-800s, with the 12th due in May 2015. Japan Transocean Air (NU/JTA) is now the sole and last Japanese operator of the 737-400 with a dozen, though that fleet too will be replaced by 737-800s starting in January 2016 (JTA finalizes order for 12 Boeing 737-800s.).

Reference: FlightLiner, September 29th. (in Japanese)

Saturday, September 27, 2014

Jetstar Japan surpasses 6 million passengers.

On September 24th, Jetstar Japan (GK/JJP) carried their 6 millionth passenger. The Tokyo/Narita (NRT/RJAA)-based carrier, which started operations on July 3rd, 2012 with routes to Fukuoka (FUK/RJFF) and Sapporo/New Chitose (CTS/RJCC), reached the latest milestone in 813 days, the fastest for a Japanese LCC.
Airbus A320-232 JA04JJ takes off from Matsuyama. (Photo: Jetstar Japan)

From the Winter 2014/2015 timetable, Jetstar Japan will operate up to 104 daily flights covering 11 domestic destinations with 18 routes (Jetstar Japan to launch Kumamoto with three routes.). Their long-awaited second hub at Osaka/Kansai (KIX/RJBB) was finally launched on June 12th (Jetstar Japan launches Kansai hub.) and regional international routes are expected from early 2015. Although their fleet of Airbus A320s had been capped at 18 due to lack of maintenance personnel, it will be on expansion mode again with three new examples to be delivered by the end of this year.

The 1 million mark was passed on March 22nd, 2013 (262 days), 2 million on August 12th (405 days), 2013, 3 million on December 6th, 2013 (521 days), 4 million on March 24th, 2014 (629 days), and 5 million on July 6th (733 days) (Jetstar Japan carries 5 millionth passenger.). The Japanese unit of the Australian-born brand is owned 33.3% by Qantas Airways (QF/QFA), 33.3% by Japan Airlines (JL/JAL), 16.7% by Mitsubishi, and 16.7% by Century Tokyo Leasing.

Reference: Jetstar Japan, September 25th. (in Japanese)

Friday, September 26, 2014

Spring Japan reduces schedule for Winter 2014/2015.

Spring Airlines Japan (IJ/SJO) has released their Winter 2014/2015 timetable effective October 26th. Their planned increase of Tokyo/Narita (NRT/RJAA) – Takamatsu (TAK/RJOT) service to two daily round-trips has been postponed, and their current double-daily Narita – Saga (HSG/RJFS) link will be reduced to once-daily. Meanwhile, all flights, including to Hiroshima (HIJ/RJOA), are being re-timed.
Boeing 737-86N(WL) JA03GR passing through Honolulu on delivery in March 2014. The aircraft is leased from GECAS. (Photo: HNL RareBirds)

The fledgling Narita-based LCC, which just launched operations on August 1st (Spring Airlines Japan commences operations.), cites Saga not being able to accept the airline's desired time as the main reason for the frequency cut, while also noting their inability to sustain their current utilization rates. However, the new timetable leaves just four daily round-trips for a trio of Boeing 737-800s. Is there a lack of staff?

Flight Schedule (Oct/25/2014 - Mar/28/2015):
Narita – Hiroshima 2 daily with 737-800.
IJ621 NRT 0845 – 1030 HIJ 73H Daily
IJ623 NRT 1655 – 1840 HIJ 73H Tu/Th
IJ623 NRT 1725 – 1910 HIJ 73H Mo/Sa
IJ623 NRT 1730 – 1915 HIJ 73H We/Fr/Su 
IJ622 HIJ 1115 – 1235 NRT 73H Daily
IJ624 HIJ 1925 – 2045 NRT 73H Tu/Th
IJ624 HIJ 1955 – 2115 NRT 73H Mo/Sa
IJ624 HIJ 2000 – 2120 NRT 73H We/Fr/Su

Narita – Saga reduced from 2 to 1 daily with 737-800.
IJ603 NRT 1420 – 1650 HSG 73H Daily
IJ604 HSG 1735 – 1910 NRT 73H Daily

Narita – Takamatsu 1 daily with 737-800. Planned 2nd daily postponed.
IJ613 NRT 1230 – 1410 TAK 73H Daily
IJ614 TAK 1455 – 1610 NRT 73H Mo/Tu/Th/Fr/Sa/Su
IJ614 TAK 1515 – 1630 NRT 73H We

Spring Airlines Japan is the Japanese unit of China's largest LCC Spring Airlines (9C/CQH). Japanese largest travel agency JTB also holds a minority interest. Flights were originally planned for May, however, paperwork delays and crew training taking more time forced them to postpone their launch twice (Spring Airlines Japan delays launch to August 1st.).

Although they haven't released load factors, the figures are estimated to be lower than the target line of 70% (breakeven is probably around 75 - 80%), especially for the Saga and Takamatsu routes. It was reportedly considering its fourth domestic destination in early 2015, and plans call for five aircraft to be added each year from next year, but can they keep up with their ambitions?

Reference: Spring Airlines Japan, September 25th. (in Japanese)

Saturday, September 20, 2014

JAL Boeing 767 encounters turbulence near Seoul.

On September 12th around 1730 KST (no time difference with JST), Japan Airlines' (JL/JAL) flight JL093, service from Tokyo/Haneda (HND/RJTT) to Seoul/Gimpo (GMP/RKSS), encountered sudden rough air as it was descending to its destination. Although no injuries were reported among the passengers, seven flight attendants sustained minor injuries.
Sistership Boeing 767-346/ER JA613J awaits its next assignment at Haneda. (Photo: Ryosuke Yano)

The aircraft involved was Boeing 767-346/ER JA654J, which had departed Haneda at 1535 JST with a load of 218 passengers, including three children, 10 flight attendants, and two pilots. As the 767 was descending to Gimpo, at 4,900 meters (16,000 feet) it experienced what was likely caused by wake turbulence approximately 25 minutes prior to landing, about 95 kilometers southeast of Seoul's airport near downtown. The aircraft landed safely at 1759, four minutes behind schedule.

Of the seven injured cabin crew, one was diagnosed of neck and back sprain which required two weeks of rest and treatment. The Japan Civil Aviation Bureau (JCAB) designates any event that results in injuries requiring treatment for over 48 hours an aviation accident, so this case fell under that category. However, South Korea, which has the authority to investigate the matter as it happened in Korean airspace, is not considering this an accident. 

Reference: Aviation Wire, September 17th. (in Japanese)

Wednesday, September 10, 2014

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)

Monday, September 8, 2014

Skymark's fate: MLIT discourages foreign investment.

Follow-up from Skymark's fate: AirAsia, ANA, Delta, or...?

Seeing reports of an investment in Skymark Airlines (BC/SKY) by the AirAsia Group circulating (Is AirAsia considering a Skymark takeover?), a senior official of the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) has told that if there is a significant ownership structure change, their precious slots at Tokyo/Haneda (HND/RJTT) would have to be returned to the MLIT for redistribution over all carriers.

"Haneda slots are prized properties that belong to the Japanese public. We gave Skymark slots as part of a scheme to promote young airlines. But if they declare bankruptcy, the MLIT will collect all of their slots. If there is a significant ownership structure change, we would view the airline as a different company, so the slots would also have to be returned to us and we would consider a reallocation process," the source said.
Airbus A330-343E JA330B. Skymark currently has three, with seven more to arrive by September 2015. All will be deployed on their lucrative Haneda domestic routes. They are also pushing the MLIT to grant night-time international slots at Haneda for flights to Hawaii, Singapore, and Thailand using the A330. (Photo: Ryosuke Yano)

The MLIT rule says that if a carrier owns more than 20% of another airline that holds Haneda slots, those slots must be relinquished and redistributed, but the above statement in response to the AirAsia rumor tells that overseas airlines are no exception. This almost rules out foreign investment; AirAsia Group would probably want managerial control (and a re-brand as well) and now that would be impossible, and it would also be a questionable use of cash for Delta Air Lines (DL/DAL), which is currently concentrating on raising its investor value.

So who now? Under the so-called '8-10 Paper' (released on August 10th, 2013), Japan Airlines (JL/JAL) is still required to submit all investment and route plans to the government for monitoring and evaluation before they go ahead, so that leaves All Nippon Airways (NH/ANA) as the only cash-rich option. Some internet-based travel firms have also been named as possible contenders as well, but nothing more has come out yet, and many believe the MLIT currently favors an ANA investment in Skymark. Wanting to portrait JAL's bailout by the previous government (Democratic Party of Japan) as a failure, the current (Liberal Democratic Party) has been putting ANA first.

When domestic slot-pairs at Haneda were increased by 25 in March 2013, ANA received eight, Air Do (HD/ADO) two, Skynet Asia Airways (d.b.a. Solaseed Air) (LQ/SNJ) three, Star Flyer (7G/SFJ) five, while Skymark was awarded four and JAL only three. But with ANA virtually controlling Air Do, Solaseed, and Star Flyer and code-sharing and coordinating schedules, they essentially got 18 slot-pairs. For international slot-pairs that were awarded in March 2014, ANA received 11 (ANA's Summer 2014 international expansion.) while JAL only five.
Boeing 777-281 JA8968 arrives at Okinawa's Naha Airport. (Photo: Ryosuke Yano)

On the other hand, after JAL placed its historical first Airbus order for up to 56 A350 XWBs, the government is said to have asked ANA to order the Boeing 777X (ANA selects Boeing 777-9X and Airbus A321neo.) to save the U.S. ally's face. This was probably one of the reasons for the order, though obviously not the only one, along with Boeing offering much more aggressive discounts and the Japanese aerospace industry pressing to order Boeing products. Initially, ANA was also leaning towards the A350. The government has since ordered a pair of 777-300ERs to replace the nation's aging two 747-400s used to transport government VIPs and the imperial family, and they will switch its maintenance contract from JAL to ANA in 2019 when the aircraft are delivered.

But, we all know that a Skymark investment by ANA would give Japan's now largest carrier too much power. It would be detrimental to the flying public as there would be no 'third force' at Haneda, Japan's largest and most important market, to challenge the ANA/JAL duopoly. And we could potentially be going back to an age of high ticket prices. Narita has a growing portfolio of LCCs, but most of the public still prefer convenient Haneda for domestic travel.

On the other hand, on September 5th, Skymark's President and CEO Shinichi Nishikubo promised the Governor of Tottori Prefecture that Haneda – Yonago (YGJ/RJOH) would be resumed from the Summer 2015 schedule. They only recently announced the axing of the unprofitable route as part of their restructuring (Skymark announces Narita closure and Yonago cuts.), so this is peculiar. Is there a prospect for a potential major investor willing to respect Skymark's independence and Mr. Nishikubo's leadership?

Anyway, backroom politicking is probably already well underway, but everyone will likely keep their mouths closed, at least until Skymark settles on a penalty price with Airbus for the A380 cancellation (Skymark's Airbus A380 order in jeopardy.), which is expected by October. The European planemaker is reportedly calling for 70 billion JPY, in addition to the 26.5 billion JPY of prepaid deposits that will not be refunded. Stay tuned.

Reference: Jiji Press, September 5th. (in Japanese)
Reference: J-Cast, September 6th. (in Japanese)

Sunday, September 7, 2014

Mitsubishi mulls launching feeder airline.

On September 4th, Mitsubishi and group company Mitsubishi Heavy Industries, along with Japan Tourism Marketing, a wholly-owned subsidiary of Japan's largest travel agency JTB, University of Tokyo, Development Bank of Japan, Ministry of Land, Infrastructure, Transport, and Tourism (MLIT), and others held the first meeting of a committee aiming at launching a new commuter airline that would fly regional jets to serve rural routes. Officials from All Nippon Airways (NH/ANA) and Japan Airlines (JL/JAL) were invited as well.
Prototype Mitsubishi MRJ90 JA21MJ inside their factory at Nagoya's Komaki. Official roll-out is planned for October 18th with first flight to take place in spring 2015. (Photo: Mitsubishi)

The Committee for Next Generation Community Airline Network calls for the new carrier to fly the Mitsubishi Regional Jet (MRJ) family to connect existing major hubs, rural cities, and regional international destinations in China and South Korea on behalf of major carriers ANA, JAL, and overseas airlines. Members believe that operating the fuel-efficient MRJ on a platform to commonly feed all the major carriers would enable them to cut costs and offer lower fares that would lead to "revitalizing underutilized rural airports," according to Yuichi Hiromoto, the Mitsubishi executive heading the group.

Similar to the model common in the U.S., the new airline would be a feeder carrier for the majors and would not be selling tickets on their own. However, current laws in Japan do not allow the operating airline and the ticket-selling company to be different corporations, so the committee will ask the MLIT to ease the rules. Japan is targeting 20 million annual visitors by the 2020 Tokyo Olympics/Paralympics, and the new airline would offer a cost-effective alternative to Tokyo's congested Haneda (HND/RJTT) and Narita (NRT/RJAA) airports, members say. Operations are targeted as early as 2017, when the first MRJ is delivered to launch customer ANA, which has 25 on order. 

Although plagued by delays, the prototype MRJ will finally be rolled out on October 18th at Mitsubishi's plant at Nagoya/Komaki (NKM/RJNA), with first flight slated for April or May 2015. Along with ANA, JAL also recently became a customer (JAL orders 32 Mitsubishi MRJs and 27 Embraer E-Jets.), ordering 32 for deliveries starting in 2021. Powered by Pratt & Whitney's PurePower PW1200G series geared turbofan engines, the MRJ family consists of the 78-seat MRJ70, which can fly 3,380 kilometers (2,100 miles), and the 92-seat MRJ90, with a 3,310-kilometer (2,050 miles) range. It is Japan's first commercial airliner since the NAMC YS-11 was introduced in 1965.

Reference: Nikkei Shimbun, September 2nd. (in Japanese)
Reference: NHK, September 5th. (in Japanese)