Air Asia and All Nippon Airways Joining Forces to Budget Flight Service in Japan

All Nippon Airways and South-East Asia’s largest budget carrier, AirAsia, are joining forces to establish a low-cost airline.

AirAsia Japan will be the first low-cost carrier to be based at Tokyo’s Narita International Airport when it begins domestic and international operations next year, the companies said.

They are planning to begin services by August 2012, which means you’ll soon be able to secure cheap flights around Japan and as far afield as South Korea and Taiwan.

All Nippon Airways will hold a 67 percent stake in the AirAsia Japan venture in terms of voting rights, with AirAsia holding the remainder.

They cited Japan’s aviation market as “undergoing rapid transformation with developments including the expansion of Open Skies agreements and increased domestic competition from road and rail-based travel”.

AirAsia Japan will serve the Japanese domestic market from Narita airport as well as South Korea and Taiwan.

Narita, a major international hub is also seeking to increase capacity with the introduction of a new terminal and is expected to attract many low-cost carriers and foreign airlines, amid expectations of increasing competition in Japanese airspace.

Japan’s existing cheaper domestic carriers such as Skymark and Air Do have been unable to offer the kind of heavily discounted fares associated with budget airlines in the United States and Europe due to higher operating costs.

AirAsia has other similar joint ventures in South-East Asia – in Thailand, Vietnam, the Philippines and Thailand – while its long-haul airline AirAsia X flies to Tokyo’s Haneda airport.

“AirAsia Japan will not only boost economic growth between ASEAN and East Asia by providing better access to markets around the region, but also enhance links within travel, trade and tourism,” AirAsia CEO Tony Fernandes said.

AirAsia X launches Cheap Flights Between Kuala Lumpur and Tokyo

Malaysian long-haul budget airline AirAsia X is to launch regular flights between Kuala Lumpur and Tokyo starting December 10 airport officials said.

Its inauguration flight is scheduled to depart from Tokyo’s Haneda airport at 11:45 pm local time. The carrier plans three flights a week connecting the Malaysian capital with the Tokyo airport, the officials said.

It will be the first foreign budget airline authorised to use Haneda, which began handling an expanded array of international flights in October when it opened a fourth runway and a new terminal.
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Haneda is considered more practical than its sister airport Narita as it is located only 30 minutes from Tokyo, roughly half the amount of time it takes to travel to Narita, which is 60 kilometres from the capital.

AirAsia X plans to sell a one-way ticket for 8000 yen ($A95 excluding taxes) for an economy seat from Japan to Kuala Lumpur as an opening discount, compared with economy fares of more than 200,000 yen offered by current route operators.

AirAsia’s entry into the Japanese market is expected to further boost competition in a space that is set to become increasingly crowded as more budget carriers enter the fray.

In September Japan’s All Nippon Airways said it will establish a low-cost carrier by the end of the year that will eventually operate international and domestic short-haul routes, anticipating booming Asian demand.

Debt-hit Japan Airlines has also said it is also looking into the possibility of launching a low-cost carrier.

Japan’s existing cheaper domestic carriers such as Skymark and Air Do have been unable to offer the kind of heavily discounted fares associated with budget airlines in the United States and Europe due to higher operating costs.

Qantas Airways’ budget Jetstar airline already flies between Australia and Japan from Osaka and Narita.