Japan Airlines announced Thursday that it will establish a new discount fare system for its Tokyo-Fukuoka route to compete with fledgling newcomer Skymark Airlines.

During the month of October, JAL will lower fares by 30 percent on three flights on the route while raising the discount rate by 5 percent on two flights between the cities.

Skymark, which earlier this month became the first domestic carrier in 35 years to receive an operating license, has said it would offer three daily flights on the route for fares less than 50 percent of those charged by the current airlines.

The one-way fare for flights between Tokyo and Fukuoka on Japan Airlines, All Nippon Airways, and Japan Air System is 27,400 yen. Skymark said its fare will be set at 13,700 yen. Industry sources said the remaining two airlines are most likely to follow JAL's move and lower rates on the route.