It appears that Japan is finally entering the age of low-cost flights. All Nippon Airways has set up a joint venture, Peach Aviation, with a Chinese investment fund and plans to set up another joint venture, AirAsia Japan, with AirAsia of Malaysia, a leading low-coast carrier (LCC) in Asia. Japan Airlines, now undergoing rehabilitation, has decided to launch an LCC joint venture, Jetstar Japan, with Australia's Qantas group and Mitsubishi Corp.
Peach Aviation will use Kansai airport as its base airport, starting flight operations in March 2012. AirAsia Japan will use Narita airport, starting flight services in August 2012. Jetstar Japan plans to start business in 2012.
At present, nine overseas LCCs are flying to and out of Japanese airports. Most of these airports are located outside the Tokyo metropolitan area and the LCCs' share in the market is only around 2 percent. The entry of ANA and JAL will help increase the weight of LCCs in Japan's aviation business.