Low-cost carrier Peach Aviation Ltd. started operations Thursday, a move sure to intensify competition among air and ground transportation companies.

Describing its flights as "flying trains," the budget airline is aiming to attract passengers by offering low-priced tickets while cutting costs by providing minimal service and charging customers for extras such as meals and blankets.

The first flight took off from Peach's home base, Kansai International Airport in Osaka Prefecture, in the morning bound for New Chitose Airport near Sapporo. The carrier will operate three round-trip flights on that route and four round-trip flights a day connecting Kansai and Fukuoka.