/AirAsia-heading-for-Japan-next-year.jpg?n=4250&tr=w-160%2Ch-90%2Cfo-auto "AirAsia heading for Japan next year")
AirAsia heading for Japan next year
Malaysian budget carrier AirAsia in July said that it would return to Japan with new local partners that include the nation's biggest online retailer, a cosmetics firm and a ski-equipment maker.
A new Timetric report has revealed that Japanese outbound tourism recorded slow growth, with international trips rising from 15.4 million in 2009 to 17.5 million in 2013.
Although the market is picking up, the limited number of international low cost carrier (LCC) flights remains one of the major factors constraining the Japanese outbound tourism market, with tourists tempted to choose domestic tourism instead, Timetric reported.
Jetstar Japan, Peach and Vanilla Air are currently the only airlines that offer LCC flights. Jetstar Japan has extension plans, while Spring Airlines Japan has expressed interest in introducing LCC flights between Japan and China.
Malaysian budget carrier AirAsia in July said that it would return to Japan with new local partners that include the nation's biggest online retailer, a cosmetics firm and a ski-equipment maker.
AirAsia, which ended a partnership with the parent of Japan's ANA in June last year, plans to start flights under the new joint venture next year.
AirAsia said it would own a 49% stake in the new company, while Rukuten, controlled by Japanese Internet billionaire Hiroshi Mikitani, will hold an 18% stake.
Rakuten aims to boost its online travel site—already one of the biggest in Japan—through the partnership.
Arnie van Groesen, analyst at Timetric, said: “Where other Asian countries have an impressive international LCC penetration rate, Japan’s rate is relatively low, with only a 5.9% share.
“As Japan is more isolated than most countries in Asia, it has fewer options for short-haul international routes, and needs to get the numbers up. “Although LCCs arrived relatively late to the Japan, the domestic LCC market is booming and outperforming the international market, with many Japanese LCCs only offering domestic flights.”