TWO PRIVATE Japanese companies have announced plans to launch new domestic airlines. This move follows recent initiatives by the transport ministry to liberalise parts of the country's over-regulated airline industry, which carries 75 million passengers annually, and is the second-largest domestic market in the world.
Cut-rate Japanese travel agent HIS says that it intends to begin flying within two years and will form a subsidiary in November to prepare for the start of the new carrier. It will have an initial capitalisation of up to ´200 million ($2 million), expanding to ´2-3 billion once it has been given approval by the ministry.
The airline plans to start with three leased aircraft in the 250-seat category, and operate on Japan's busiest trunk route, between Tokyo and Sapporo.
Local Sapporo-based chicken company Hokkai Chick Star has also unveiled plans also to start a new airline by 1998 to operate on the same route.
Newcomers are being encouraged to enter the Japan market by the Government's decision to lower restrictions on the number of airlines allowed to operate on one route, giving carriers a freer hand to set fares, review restrictions on subcontracting out aircraft maintenance and set aside new slots at Japan's overcrowded airports.
Source: Flight International
