JAL May Launch New Budget Carrier in 2020 at Earliest

May 9, 2018

Tokyo- Japan Airlines <9201> is considering a plan to launch a new low-cost carrier as early as 2020, informed sources said Tuesday.

JAL hopes to expand its LCC business after seeing in spring last year the end of restrictions on its new flight route openings and fresh investments introduced due to its 2010 bankruptcy, the sources said.

The new LCC is likely to start operating flights connecting Japan with European and U.S. cities as early as 2020, when the Tokyo Olympics and Paralympics are held.

JAL holds one-third of shares in Jetstar Japan, an LCC created in 2011 with Australia's Qantas Airways and other companies.

Jetstar Japan operates flights on 26 domestic and international routes, including those linking Japan with Hong Kong and Taiwan.

Competition is heating up in the LCC industry in Japan, as passenger flight demand is forecast to continue growing in the Asia-Pacific region.

ANA Holdings Inc. <9202> plans to merge LCC units Peach Aviation and Vanilla Air by the end of fiscal 2019. Jiji Press