Japan Airlines sets sights on AirAsia's turf for first low-cost route

4 Jun 2018 21:28:20

theedgemarkets.com

Japan Airlines Co has decided to go head-first into the home turf of Asia’s largest low-fare carrier.

The Japanese operator, which is starting its own budget carrier next month, will begin flying to Southeast Asia initially, Masaru Onishi, a director at Japan Airlines, said in an interview in Sydney Monday. The new company will be able to lower per-seat costs by 50% compared with the parent airline, he said, without providing more details including the first destination.

Japan Airlines will compete with Sepang, Malaysia-based AirAsia Group Bhd, whose businesses include affiliates in Indonesia, the Philippines, Thailand and Vietnam. The Japanese carrier, which has said it plans to fly medium-to-long-haul international routes from the Narita International Airport serving Tokyo, is also assessing when it can begin services to Europe and the US, Onishi said.

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