Wednesday, June 19, 2013
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Low cost flying arrives in luxury loving Japan

NARITA, Japan — Japan has a reputation for loving expensive things like overpriced real estate, gourmet melons and luxury brands. But the nation is finally discovering the joy of flying cheap, with the arrival this year of three low-cost carriers.

The takeoff of AirAsia Japan, Peach Aviation and Jetstar Japan could change lifestyles. No longer will air travel be mostly confined to business trips and fancy once-in-a-lifetime vacations to places such as Hawaii.

Flying is suddenly growing more casual, including for weekend dining, visits with friends, even day trips. Ticket prices are plunging by about half, to 16,000 yen ($200) trips to the southwestern resort island of Okinawa or a 5,000 yen ($60) hop to Seoul.

The airlines are not only out to woo Japanese away from regular leisure activities such as spending money at Disneyland or watching a movie. They are also out to convince the notoriously workaholic Japanese not to work so hard.

They may revitalize Japan’s 3 trillion yen ($38 billion) aviation market — already the world’s third largest, comprising about 5.5 percent of global traffic and 11 percent of industry revenues — that critics say is untapped for its tremendous potential.

Helping to drive the change is the expansion of two Tokyo airports, Haneda and Narita, which has opened up more landing slots for airlines.

Twenty-two-year-old graduate student Chie Kodama recently used Jetstar for an urban planning research trip to Okinawa, and was surprised at how the planes were “normal,” like any other airline’s.

“And it is so cheap you forgive any shortcomings,” she said.

As with other low-cost carriers around the world, flyers get charged for meals and extra luggage. Efficiency is critical and so the airlines use online advertising and reservations, fit more seats into each jet, and take off quickly after landing.

Booking early is a must for the best deals, and refunds and schedule changes aren’t allowed. The gates are typically at the farthest end of airports. Flights are sometimes delayed. The wait feels longer because LCC users have to check in extra early.

Masato Yamaguchi, 22, said his friends had to run like mad when their AirAsia flight back to Tokyo from Okinawa was delayed, and they barely had time to catch the last bus.

As he noted: What would be the point of having to pay hundreds of dollars for a cab home, if they had endured the cramped space of a low cost carrier to pinch pennies?

“There was no way to cross your legs,” Yamaguchi grumbled. “You wouldn’t want to use it if you’re going someplace far away.”

Still, the carriers are doing well so far.

During the nation’s Obon holidays in August, domestic flights at Peach were 94 percent filled, those at AirAsia were at 91 percent and at Jetstar, 89 percent. The companies are hoping to do as well for the year-end and New Year’s holidays.

“It’s not that the meals on standard fares were ever free. The charge was just part of the ticket price,” Kazuyuki Iwakata, president of AirAsia Japan, told The Associated Press. “With us, people pay only for what they need.”

As a marketing ploy, AirAsia Japan, which started operations in August, offered tickets for just 5 yen (5 cents) to the first 10,000 people. They quickly sold out.

During the go-go “bubble years” of the late 1980s and early 1990s, Japanese were especially seen as finicky consumers who delighted in 3,000 yen ($30) cups of fancy coffee and snatched up 500,000 yen ($5,000) designer bags.

Such spending has lost some of its glamor as Japanese become less status-conscious, perhaps poorer and look for discounts. Such shifts in consumer tastes is underlined in the popularity, for instance, of Fast Retailing Co.’s no-nonsense Uniqlo clothing chain, which is also opening shops in the U.S.

Geoffrey Tudor, analyst with Japan Aviation Management Research, said low-cost carriers are introducing the fun of flying to young people and retirees. They are also popular with families who live apart to juggle work assignments and children’s education needs — a practice so widespread a special phrase has been coined to describe it, “tanshin funin.”

Jetstar Japan Chief Executive Miyuki Suzuki said a tenth of those who use her carrier are first-time fliers.

“We aim to grow the piece of the pie,” she told reporters recently. “People can travel more for less and have many more experiences.”

Jetstar Japan is a third owned by Australia’s Qantas Airways Ltd., and a third owned by Japan Airlines Co., which is making a soaring comeback, thanks to a 350 billion yen ($4.5 billion) government bailout from bankruptcy two years ago and generous tax breaks that continue for several years. Mitsubishi Corp. and Century Tokyo Leasing Corp. are its other shareholders with 16.7 percent each.

AirAsia Japan is 49 percent owned by AirAsia, a Malaysian low-cost carrier founded in 1993, whose motto is “Now everyone can fly,” and 51 percent by All Nippon Airways Co., or ANA, JAL’s rival.

ANA is also a 38.7 percent investor in Peach, a joint venture with Hong Kong investment group, First Eastern Aviation Holdings. Peach offers flights out of Kansai International Airport in Osaka, central Japan.

AirAsia Japan offers flights out of Narita, the Tokyo airport, to Sapporo, Fukuoka and Okinawa in Japan, and plans to start them to Seoul and Pusan in South Korea later this year. Flights to the Philippines and Guam are in the works as well.

While expanding Haneda has given a boost to the airline travel market, officials say more needs to be done. Landing fees at Japanese airports are among the highest in the world, endangering Tokyo’s role as an Asian hub.

Tony Tyler, director and chief executive of the International Air Transport Association, said all carriers need to bring costs down if they hope to survive, but was upbeat about Japanese LCCs.

“In many parts of the world, the low-fare sector has tapped into demand from new market sectors. So they have grown the market, rather than cannibalized it,” he said.

Also sold on low-cost carriers was Hirotaka Yamamoto, 22, who goes to college in Tokyo but hails from the northernmost island of Hokkaido. He surprised his parents over the summer by going home, thanks to the 24,000 yen ($300) round-trip fare on Jetstar, less than half of what he paid in the past.

“They were surprised to see me and so happy,” he said. “I hope the tickets keep getting even cheaper.”

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Recent Posts

  • Enter your email address to subscribe and receive notifications of new posts by email.

  • .

    Solano News

    NorthBay opens trauma operating room

    By Barry Eberling | From Page: A1 | Gallery

     
    Benicia grass fire burns 150 acres, brings out Cal Fire crews

    By Mike Corpos | From Page: A1 | Gallery

     
    Fire scorches Motel 6 on Central Place; no injuries reported

    By Mike Corpos | From Page: A1 | Gallery

    Summer camps for every occasion

    By C.W. Plunkett | From Page: A2

     
     
    Solano County Fair to team with tribal group

    By Danny Bernardini | From Page: A3

    Slow food festival returns to Rio Vista

    By Susan Winlow | From Page: A3

     
    Appeals court keeps Solano child rapist locked up

    By Jess Sullivan | From Page: A3

     
    Fairfield police log Monday, June 17, 2013

    By John Glidden | From Page: A12

     
    .

    US / World

    A look at US-Taliban relations

    By The Associated Press | From Page: A1

     
    US, Taliban to start talks on ending Afghan war

    By The Associated Press | From Page: A1

    Bill would honor Buffalo Soldiers’ role in parks

    By The Associated Press | From Page: A5

     
    Boy, 6, killed by relative’s dog at Calif. home

    By The Associated Press | From Page: A5

    Feds say Calif. hospice owes $112M for fake claims

    By The Associated Press | From Page: A5

     
    Officials: Unattended campfire caused Calif. fire

    By The Associated Press | From Page: A6

    What it takes to become an Army Ranger

    By The Associated Press | From Page: A8

     
    Military plans would put women in most combat jobs

    By The Associated Press | From Page: A8

    House takes up far-reaching anti-abortion bill

    By The Associated Press | From Page: A9

     
    CBO: 8 million to gain legal status in Senate bill

    By The Associated Press | From Page: A9

    Scientists: Timber in Lake Michigan centuries old

    By The Associated Press | From Page: A9

     
    Syrian warplanes strike rebel posts in Aleppo

    By The Associated Press | From Page: A10

    G-8 seeks unity on Syrian peace talks, tax evasion

    By The Associated Press | From Page: A10

     
    AP Exclusive: US war games send signal to Assad

    By The Associated Press | From Page: A10

    Obama’s influence, limitations on display at G-8

    By The Associated Press | From Page: A10

     
    .

    Opinion

     
    Administration will do anything to stay in power

    By Letter to the Editor | From Page: A11

    G-8 summit spurs work on historic trade deal

    By Scripps Howard News Service | From Page: A11

     
    Do we really want women in combat?

    By Bud Stevenson | From Page: A11

     
    Editorial Cartoons for June 19, 2013

    By Daily Republic Syndicated Content | From Page: A11

    .

    Living

    Today in History for June 19, 2013

    By The Associated Press | From Page: A2

     
    Community calendar Wednesday, June 19, 2013

    By John Glidden | From Page: A2

    My 33-year-old husband acts like teenager, won’t give up marijuana

    By Kathy Mitchell and Marcy Sugar | From Page: B5

     
    Horoscopes for June 19, 2013

    By Holiday Mathis | From Page: B5

    Easy ways to jazz up the classic campfire s’more

    By The Associated Press | From Page: B6 | Gallery

     
    Ask Food: How to feel full when on a diet

    By Food Network Kitchens | From Page: B6

    .

    Entertainment

    TVGrid

    By Daily Republic Syndicated Content | From Page: A5

     
    Miss Utah USA takes 2nd stab at pageant question

    By The Associated Press | From Page: A7

    Jodi Arias TV movie airs Saturday on Lifetime

    By The Associated Press | From Page: A7

     
    James Franco seeks $500,000 in crowd-funding

    By The Associated Press | From Page: A7

    .

    Sports

    AL West-leading A’s beat Texas, Darvish 6-2

    By The Associated Press | From Page: B1 | Gallery

     
    Rodriguez runner Houston DR’s Prep Boy Athlete of the Year

    By Brian Arnold | From Page: B1 | Gallery

    Surprise Hossa scratch part of NHL injury culture

    By The Associated Press | From Page: B1

     
    San Jose sues MLB over A’s proposed move

    By The Associated Press | From Page: B1

    U.S. beats Honduras 1-0 in WC qualifying

    By The Associated Press | From Page: B2 | Gallery

     
    Daytona frontstretch getting $400M facelift

    By The Associated Press | From Page: B2

     
    AP Source: Couture agrees to extension with Sharks

    By The Associated Press | From Page: B2

    Mickelson has silver market cornered in US Open

    By The Associated Press | From Page: B2 | Gallery

     
    Oly sprint champion Campbell Brown suspended amid probe

    By The Associated Press | From Page: B2

    Venus Williams pulls out of Wimbledon, citing back

    By The Associated Press | From Page: B2

     
    Fairfield Expos pick up close 3-1 win over Medford, Ore.

    By Daily Republic staff | From Page: B2

    .

    Business

    Here’s what to watch for Wednesday from the Fed

    By The Associated Press | From Page: B7

     
    Chrysler agrees to recall of Jeeps at risk of fire

    By The Associated Press | From Page: B7

    US home construction rises 6.8 percent in May

    By The Associated Press | From Page: B7

     
    Hewlett-Packard puts Bradley in strategy role

    By The Associated Press | From Page: B7

    Aetna to stop selling individual plans in state

    By The Associated Press | From Page: B7

     
    US consumer prices rise just 0.1 pct. in May

    By The Associated Press | From Page: B7

    Stocks advance, await word from Fed

    By The Associated Press | From Page: B7

     
    Wake-up call: Starbucks to post calorie counts

    By The Associated Press | From Page: B7

    .

    Obituaries

    William D. Hamilton

    By John Glidden | From Page: A4, 1 Comment

     
    Elsie M. Lambrecht

    By John Glidden | From Page: A4

    Angelita G. Artates

    By John Glidden | From Page: A4

     
    .

    Comics

    Pickles

    By Daily Republic Syndicated Content | From Page: B4

     
    Frank and Ernest

    By Daily Republic Syndicated Content | From Page: B4

    B.C.

    By Daily Republic Syndicated Content | From Page: B4

     
    Dilbert

    By Daily Republic Syndicated Content | From Page: B4

    Zits

    By Daily Republic Syndicated Content | From Page: B4

     
    Rose is Rose

    By Daily Republic Syndicated Content | From Page: B4

    Beetle Bailey

    By Daily Republic Syndicated Content | From Page: B4

     
    Sally Forth

    By Daily Republic Syndicated Content | From Page: B4

    Get Fuzzy

    By Daily Republic Syndicated Content | From Page: B4

     
    Blondie

    By Daily Republic Syndicated Content | From Page: B4

    For Better or Worse

    By Daily Republic Syndicated Content | From Page: B4

     
    Baldo

    By Daily Republic Syndicated Content | From Page: B4

    Fort Knox

    By Daily Republic Syndicated Content | From Page: B4

     
    Peanuts

    By Daily Republic Syndicated Content | From Page: B4

    Garfield

    By Daily Republic Syndicated Content | From Page: B4

     
    Wizard of Id

    By Daily Republic Syndicated Content | From Page: B4

    Word Sleuth

    By Daily Republic Syndicated Content | From Page: B5

     
    Cryptoquote

    By Daily Republic Syndicated Content | From Page: B5

    Bridge

    By Daily Republic Syndicated Content | From Page: B5

     
    Crossword

    By Daily Republic Syndicated Content | From Page: B5

    Sudoku

    By Daily Republic Syndicated Content | From Page: B5