Low-cost carrier battle looms in Japan

But market dynamics and constraints represent tall hurdles

Flamboyant budget airline chief Tony Fernandes isn’t one to throw in the towel. The Malaysian entrepreneur showed that on the sporting front, sticking firmly by has big cash investment in English soccer side Queens Park Rangers despite their dismal performance and relegation to the second tier of British football earlier this year.

He might be well advised, however, to think very carefully about having a second go at Japan’s embryonic budget airline market in the near future. Why? Ironically, after AirAsia’s brief love affair with All Nippon Airways (ANA) and its joint venture low-cost carrier (LCC) AirAsia Japan ended in divorce in June after management bickering. The wash-up could actually result in an increase in the number of no-frills competitors in the Japanese market, making life even tougher than it already is.