Jetstar Japan to be operational next year

The new airline was officially launched on 16 August. It expects to fly from Tokyo (Narita) and Kansai International airports, with other destination airports and bases being considered including Sapporo, Fukuoka, and Okinawa.

It also plans to offer short haul international services to key Asian cities.

Bruce Buchanan, chief executive officer of Jetstar, said the expansion into new markets across Asia gives the airline the economies of scale to strengthen its low-cost advantage right across its network.

Alan Joyce, CEO at Qantas, said the establihsment of Jetstar Japan was an historic and important step for the Qantas Group. "The Qantas Group has a wealth of experience in establishing low-cost carriers and we are looking forward to working with our partners on this new venture which will offer low fars to the Japanese travelling public."

Fares are expected to be an average of 40 per cent lower than current prices, the partners said.

Jetstar Japan is expected to start flying with an initial fleet of three new Airbus A320 aircraft, configured for 180 customers in a single class. This fleet is planned to grow to 24 A320s within a few years. Total capitalisation commitment for the new airline is up to US$156.3 million.

Jetstar’s existing network offers connections to 17 countries, including Australia, Singapore, Vietnam and New Zealand.

Masaru Onishi, president of JAL, said the partnership with Jetstar was a two-airline strategy that will allow the Japanese carrier to competitively serve a larger part of the Japanese market.

"We are confident that Jetstar Japan will broaden the spectrum of travellers as it creates new demand in this market. It will encourage even mor emovement of people wihtin the country and also increase the number of visitors from Asia to Japan. We anticipate this to stimulate consumer spending and play a role in revitalising the Japanese economy."

Meanwhile, Hideshi Takeuchi, executive vice president and CEO of the industrial finance, logistics and development group within Mitsubishi Corporation, said Jetstar's entrance to Japan ishowed how a successful low cost airline operation could revitalise the country's domestic air transportation market.

"That is the reason for our participation, and we would like to support Jetstar Japan's success in Japan as well as eastern Asia with our variety of services such as aircraft leasing," he added.

In 2007, Jetstar was the first low cost airline to enter Japan with flights from Osaka and Tokyo to Cairns and the Gold Coast. Subsequently, in July last year, Singapore and Taipei were connected to Osaka. More than two million people have since travelled on these routes.