Big in Japan

Japan Airlines, already in the budget sector with partner Qantas, surprised with its decision to launch a new low-cost carrier. Will it threaten Jetstar Japan, their existing offering? Despite some reports to the contrary, the answer is a definite “No”.

When the news began to filter through that Japan Airlines (JAL), still on the recovery trail after its spectacular A$33 billion bankruptcy in 2010, the biggest collapse in the country’s history, was intending to launch a new low-cost carrier, eyebrows were raised at Jetstar Japan’s base at Tokyo’s Narita Airport. Initially, the plan wasn’t clear. After all, JAL was already the majority stakeholder in Jetstar Japan with partner Qantas Airways and it was now the biggest budget operator in the Japanese domestic market.