Jet­star of­fers cut price Shang­hai to Tokyo flights

China Daily (USA) - - BUSINESS - ByWUYIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn

Jes­tar Ja­pan, the largest low-cost car­rier in Ja­pan by sales rev­enue, an­nounced on Tues­day in Shang­hai that it will launch direct flights be­tween the city and Tokyo as a part of its ef­fort to ex­pandits in­ter­na­tional foot­print and meet surg­ing travel de­mand from Chi­nese tourists.

The­newroute, which of­fers 1,440 seats weekly be­tween Tokyo’s Narita air­port and Shang­hai’s Pudong air­port, gives trav­el­ers a low-fare op­tion with prices that can be as low as 198 yuan ($30).

Masaru Kataoka, chair­man and rep­re­sen­ta­tive di­rec­tor of Jet­star Ja­pan Co Ltd, said the fast grow­ing num­bers of Chi­nese tourists vis­it­ing Ja­pan will en­sure there is sta­ble de­mand for this newroute.

“We also see more Chi­nese tourists are vis­it­ing Ja­pan re­peat­edly. In Septem­ber alone, Chi­nese vis­i­tors ar­rivals grew 6.3 per­cent to 522,300. Tourism ar­rivals from China to­taled 5 mil­lion in the first nine months of 2016, ex­ceed­ing the full-year record of 4.99 mil­lion in 2015. At the same time, Shang­hai con­tin­ues to be a top re­gional draw for Ja­panese trav­el­ers and the newroute will at­tract price-con­scious busi­ness trav­el­ers,” said Kataoka.

Jet­star Ja­pan has the ca­pac­ity to of­fers low-fare op­tions to trav­el­ers by cutting costs through scal­ing up and en­hanc­ing ef­fi­ciency, said Kataoka.

The Civil Avi­a­tion Ad­min­is­tra­tion of China has called for the de­vel­op­ment of low­cost car­ri­ers in the coun­try.

Mar­ket an­a­lysts said that low-cost car­ri­ers see great growth po­ten­tial in the China mar­ket given its surg­ing num­ber of trav­el­ers head­ing to do­mes­tic des­ti­na­tions and overseas. In China, more than 392 mil­lion flights are taken ev­ery year, with an­nual growth of 10 per­cent in 2015, ac­cord­ing to China’s civil avi­a­tion au­thor­i­ties.

“Low-cost car­ri­ers, which have a com­bined mar­ket share of less than 10 per­cent, are ex­pected to dou­ble their mar­ket share in the next decade, but com­pe­ti­tion is go­ing to be fiercer at the same time. The mar­ket will be­come more con­sol­i­dated,” said re­search note fromHaitong Se­cu­ri­ties.

Strong ca­pac­ity in op­er­a­tion man­age­ment and fi­nan­cial plan­ning are the key is­sues for low-cost car­ri­ers if they wish to fly safer and at lower costs, said a mar­ket re­port by the Bei­jing-based Bosi Data Re­search Cen­ter.

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