Thursday, September 23, 2010

More Low Cost Airlines Enter Japan's Market for Betterment of Everyone

More new Low Cost Carrier's (LCC) are entering Japan to the betterment of the Japanese consumer. This time a new airlines from Malaysia, AirAsia Bhd, is about to begin services.

From Nikkei Newspapers:
Five overseas budget airlines already operate regular flights to Japan, but with AirAsia Bhd to join the fray, price competition on international routes is sure to take off.
Established in 2001, the Malaysian airline is a trailblazing low-cost carrier. It has grown at breakneck speed over 10 years and now operates 132 routes covering such markets as Great Britain, South Korea, China and Australia.
Japan had been on the airline's radar for a few years, but hefty airport usage fees and limited landing spots at Narita and other airports remained stumbling blocks.
From October, Haneda airport will begin midnight flights for major overseas carriers and this has opened up available slots for other airlines to get into Narita and the LCC are taking advantage of this situation. This is especially good for businessmen as companies are getting very careful about travel expenses in a more competitive market.
Business travelers are also expected to opt for low-cost carriers as companies pare back operating expenses. With Japanese airlines caught up in the web as well, price competition is likely to soar.
All of this is to the better for business and the public at large. Hopefully these LCC can start to get even the majors involved in the price cutting and competition for better services at lower cost.

Original Nikkei article.
Keywords: Low Cost Carrier, LCC, AirAsia, Narita, Haneda

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