Meanwhile J* Japan
Japan slowing down aircraft deliveries
The three new LCCs – Peach, Jetstar and Vanilla – carried 6% of traffic. While depressed from the AirAsia/Vanilla switch, it marks a start for the first carriers to eliminate all frills, unlike predecessors such as Skymark, which alone carried 7% of traffic. The adoption to LCCs in Japan is slow, and there were some early painful lessons, but growth is near-guaranteed.
Jetstar Japan added nearly as many seats as JAL while Peach added nearly as many seats as ANA. Meanwhile ANA and JAL project long-term decreases in Japan's domestic market. Further, Jun-2014 sees the launch of Spring Airlines Japan with domestic flights and in the future international services, mainly to China. This is the first (but will not be the last) international JV for China's Spring Airlines. AirAsia is also looking to re-enter. However, five new LCCs plus three existing mean excessive market fragmentation.
Although it may challenge the epithet that airlines never die in Japan, consolidation is in order. But more importantly, until prevailing legacy attitudes are redirected towards supporting economic expansion goals, LCCs will continue to labour under unnecessary handicaps.
Jetstar Japan slowing down aircraft deliveries | CAPA - Centre for Aviation
My take, growth is one thing profit quite another... there must be additional costs associated with the start up of a second hub... not good timing for AJ and the coming reporting period... how will they dress up this part of the amazing business....? He will probably have the urge to load it all on Qantas International as if it is all their fault, again.
Of course AJ has the full support of the board which must be a comfort to him... amaaazing...
http://youtu.be/7t173zQi7J4
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