News
Japan Airlines to install its LCC B787s with up to 300 seats
August 24th 2018
Japan Airlines (JAL) is looking to install 290-300 seats on B787-8s earmarked for its newly-announced long-haul low-cost carrier (LHLCC), ATW has reported, citing JAL VP for global sales, Steve Smith. Read More »
This is a sharp deviation from current practice. Mainline JAL B787s flying today feature low-density configurations of 161-184 seats only.
Earlier this month, the Japanese flag carrier formally established a corporate entity that will operate medium and long-haul low-cost B787 flights from 2020. The company’s interim name is TBL Co. Ltd., which stands for “to be launched.”
Shinto Nishida is the representative director on the LHLCC. The carrier’s headquarters will be at Tokyo Narita Airport. JAL owns 100% of the company, although it is seeking other investors.
Initially, the LHLCC will fly two B787-8s to Southeast Asia, Europe and the U.S. to complement the domestic and regional networks of its joint venture, Jetstar Japan. It plans to have a fleet of 10 B787s by 2023. To avoid cannibalization, JAL said “TBL Co. Ltd” would not operate to destinations served by mainline JAL.
“When JAL establishes the new LCC business, the company aims to create new demand, working with the successful services of Jetstar Japan, which features domestic and short-haul international flights,” the airline group said.
In the interim, JAL’s arch rival, All Nippon Airways, is strengthening its LCC position by merging its two subsidiary LCCs, Peach Aviation and Vanilla Air, into a single entity that will operate under the Peach brand and expand onto long haul routes.
On LCC growth in Asia, JAL’s Steve Smith noted that forecasts predict budget carriers will hold 50% of the market going forward. “That’s one in every two seats. We are a high-yield carrier and we are missing out on a big part of the market,” Smith said.
