JAL has announced plans to launch a low-cost carrier ahead of the 2020 Tokyo Summer Olympics, aiming to tap growing Asian demand for budget air travel and based at Narita International Airport, the as-yet unnamed airline will operate medium to long-haul international routes to select destinations in Asia, Europe, and the Americas.
With plans to operate two wide-body Boeing 787-8 aircrafts in the first stages, the new LCC will complement its existing low-cost operations, Jetstar Japan, which only features domestic and short-haul international routes.
To date, JAL had limited its low-cost operations to its minority stake in Jetstar Japan, a joint venture with Qantas Airways. JAL aims to have outside investors in its new LCC, which will become a consolidated subsidiary of JAL.
Japans LCC market has been expanding of late and in March 2018, All Nippon Airways Co., Ltd., (ANA) announced plans to integrate its LCC affiliates. Scheduled to begin services in 2020, Peach Aviation and Vanilla Air will operate under the Peach brand and will feature medium-length international routes.
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