ANA will determine LCC brand after March and aim to clear debt in 5 years

Discussion in 'ANA | Mileage Club' started by JALPak, Feb 10, 2011.  |  Print Topic

  1. JALPak
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    ANA's LCC JV with First Eastern Investment Group was established today. And it is called A&F Aviation Co. and they will decide the brand name after March. And be prepared to pay for the "unnecessary" services

    http://online.wsj.com/article/BT-CO-20110210-704440.html

     
  2. QSG
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    So how is this any different than Jetstar, Air Asia, ? It will mop up those price conscious Asian tour groups and budget travelers . Good on NH for seeing the light (if not a little late).....if JL had any money I am sure they would do the same thing[​IMG]!
     
  3. JALPak
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    No problem with that at all. It's just a matter of how far they would go for a la carte pricing. Think Ryanair :)
     
  4. QSG
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    So if was Ryanair-esque you can look for them to be quite profitable.....and putting downward pressure on fares to China, Korea, and other regional destinations from KIX! It is perfect for the Osaka(Kansai) market.....I am sure we will see JL start a subsid called Jetstar Japan in cooperation with QF and some other financial partner (hope they let QF run the show, if they want to see profit).
     
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  5. JALPak
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    Without a doubt it will challenge the legacy carriers. But as JAL CEO said, this is a double sword, it will hurt NH too.
     
  6. QSG
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    NH knows where they are making the good money and will steer the flights to where the pickings are slim. This will impact JL as they have very little capacity coming on line in the next little while! NH can take planes off routes that are presently not making enough money and put the planes into markets that are!
     
  7. wingspan
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    I'm interested to see whether they compete with BC and HD in the domestic market at all. It might bring domestic travel down a little, which wouldn't hurt.
     
  8. wingspan
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    JL already have JC operating services to PVG and HGH so it would be nice if this pushes them to expand services a little wider.
     
  9. JALPak
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    But JC is not really a LCC.
     
  10. QSG
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    But the prices are fixed in the domestic market in bands , by the MOT ! The bureaucrats feel it would cause confusion if the airlines were able to set prices freely!
     
  11. QSG
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    Just a division of JL International ,no?
     
  12. wingspan
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    It's wholly-owned but independently-run subsidiary of JL.

    No but it claims to be, and it could be used as such if the JAL group wanted to expand to the East Asian market as NH will be doing.
     
  13. QSG
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    But where will JL get the money to fund this adventure...they are having a hard time lining up investors as it is.
     
  14. wingspan
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    It would make it easier for those of us who want to commute to TKS if prices were to come down there. I can understand the MOT fixing prices in areas where JR run much more feasible transport options around the country.
     
  15. wingspan
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    Ideally, from QF and a financial partner, as you mentioned [​IMG]

    I'd fly with them [​IMG]
     
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  16. QSG
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    JR/Airlines/Highways all lobby the MOT hard! That is why it is like it is! I am just happy with 1000 JPY tolls on weekend and holidays!
     
  17. Chinese Banks :)
     
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  18. QSG
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    Stand
    Stands to reason as that is where NH is getting theirs....
     
  19. Simon
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    5 years is pretty hardcore. Would be a pretty difficult task but NH have a better idea of how to run things unlike JAL.
     
  20. Chinese banks have been very aggressive in lending money. Also most banks are careful lending money to Airlines.
     
  21. Does anyone know if the new carrier will be operating Airbus or Boeing?
     
  22. JALPak
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    I heard it will be a 737 fleet from @flyingwithfish on twitter
     
  23. QSG
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    Didn't they talk about the A320?
     
  24. i hope they are 737 Boeing needs the money :)
     
  25. I hope they are A320 family. I don't like 737s [​IMG]

    P.S. Totally academic for me since I don't normally fly LCCs! But I am still curious...
     
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