Wednesday 2 November 2011

AirAsia Japan to add long-haul flights in 2013

AirAsia Japan Co, the start-up airline backed by the region’s biggest low-cost carrier, will add long-distance flights in 2013 as it seeks to lure holidaymakers and budget travelers with cheap flights.

The airline may offer services to Thailand, Indonesia and Singapore after introducing widebody Airbus SAS A330 planes, Chief Executive Officer Kazuyuki Iwakata said in interview yesterday. The company will begin short-haul routes from Tokyo’s Narita airport in August with single-aisle A320s.

AirAsia Japan may order the A330s with part-owner AirAsia Bhd. to help win lower prices, Iwakata said without elaboration. The Japanese carrier is also counting on AirAsia’s regionwide operations and marketing to help it carry 10 million passengers annually within five years.

“We don’t view our competitors as ANA and JAL as much as resorts such as Tokyo Disney Resort,” Iwakata said, referring to full-service carriers All Nippon Airways Co and Japan Airlines Co. “We’re aiming at families who want to enjoy the weekend or people who play Pachinko -- we want them to be able to think about taking a flight as easily as they would hop on a bus.”

The new airline, part-owned by ANA, intends to lure passengers with fares as much as two-thirds cheaper than traditional carriers. It will compete with Skymark Airlines Inc, Japan’s biggest budget carrier, and Jetstar Japan, a low- cost venture being set up by JAL and Qantas Airways Ltd.’s budget unit. ANA is also backing Peach Aviation Ltd, another planned no-frills carrier that will serve western Japan.

Separately, Singapore Airlines Ltd also yesterday detailed plans for a new long-haul discount carrier, Scoot, which will begin flights next year. -- Bloomberg
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