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JAL to Add Low-Cost Long-Haul Unit

Photo: Japan Airlines will use a pair of Boeing 787-8 Dreamliners for its as-yet unnamed new low-cost long-haul carrier. (Photo Boeing)

 

Japan Airlines (JAL) is establishing a low-cost long-haul carrier at Tokyo/Narita, which is due to start operations before the 2020 summer Olympic Games being held in the Japanese capital.

The as-yet unnamed airline will initially use a pair of Boeing 787-8 Dreamliner’s on services within Asia as well as to Europe and the Americas.  The move follows a previous announcement by rival ANA Holdings that it was merging its two budget brands – Vanilla Air and Peach – into a single entity ahead of launching medium-haul services, also in 2020.

JAL hopes the move, part of the company’s 2017-2020 Medium Term Management Plan, will capitalise on the growing demand for long-haul low-cost services in Asia as well as boosting outbound passenger growth which has been stagnating in recent years.

The carrier also made it clear that its new long-haul unit would complement the domestic and regional international services of its joint venture with Qantas, Jetstar Japan in which it owns an equal 47.1% stake with the Australian flag carrier, with Century Tokyo Corporation and Mitsubishi holding the remaining share.

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