JAL`s LCC Strategy Based in Narita Starts in Earnest
～SPRING JAPAN becomes a member of the JAL Group～
One of the pillars of JAL`s medium-term management plan is to strengthen its LCC business, generate revenue in the tourism and VFR markets, which are expected to recover and grow, and expand its business domain.
As part of these efforts, we will make additional investments in both Spring Japan and Jetstar Japan, and
together with ZIPAIR, we will build a Narita-based LCC network while responding to changes in the
post-Corona market through business development by the three companies. The investment in the above two
LCCs will be made with a portion of the funds raised through the public offering conducted in November 2020.
VFR/Visit Friends and Relatives
SPRING JAPAN has recently become a consolidated subsidiary of the JAL Group. In addition to responding to the strong inbound passenger demand from China to Japan by leveraging the Spring Group`s high brand power and sales capabilities in China, in the future we aim to expand our network from Narita to points in China where there are currently no direct flights, and contribute as a bridge between China and Japan.
Jetstar Japan will continue to work with the Australian Qantas Group to contribute to the expansion of the LCC market in Japan, based on a dual brand strategy that combines the strengths of the Jetstar brand (LCC) and the JAL brand (full service carrier).Through this investment, we will quickly recover our financial position that was damaged by the impact of the Corona disaster, and we will respond to the expected market recovery with a sense of speed, leading to further growth.
Another JAL Group LCC, ZIPAIR ,also based in Narita, will resume service on the Honolulu route on
Wednesday, July 21, and plans to expand its network to medium to long haul routes, including the U.S. West Coast and Asia. ZIPAIR will grow by attracting new customers that JAL, the conventional full-service carrier, has not been able to reach.
The JAL Group will continue to build a global network that leverages the strengths of the three Narita based
LCCs, while maintaining the basic premise of safety and security, to realize the goal of “reaching regions of
Japan from around the world and regions of Japan from around the world. We will also contribute to the
revitalization of Japan`s regions and meet the diverse needs of our customers.
Please look forward to the JAL Group`s LCC wings.