Paul Lewis/SINGAPORE
Competition in the Japanese domestic airline market is set to hot up, following the first Government approval in 35 years for a new carrier. The go-ahead for a second start-up carrier is also pending, with two more new entrants planning to fly in 2000.
Skymark Airlines has been given a green light from Japan's Ministry of Transport (MoT) to begin scheduled air services from 13 September. The Tokyo-based carrier intends to operate initially three times daily between Haneda Airport and Fukuoka.
It will shortly take delivery of a 309-seat Boeing 767-300 from International Lease Finance (ILFC) on a seven-year operating lease. "We're seeking to take a second ILFC 767-300 in November to expand our routes, but we're still negotiating with the Government," says Satoshi Abe, Skymark managing director.
The airline, which is backed by Japanese travel agent HIS, plans to offer fares up to 50% less than the MoT price ceiling. The carrier, which does not expect to make a profit before 2002, has ´4 billion ($29 million) in capitalisation and has budgeted for a ´1 billion loss in its first six months.
Hokkaido-based Air Do is waiting for its MoT licence to begin flying commercially from 30 October. The airline took delivery of a 286-seat configured 767-300ER in late June from Ansett Worldwide on a seven-year operating lease. It has contracted Parc Aviation to supply crews and Japan Airlines for technical support.
It plans to fly three times daily from Sapporo to Haneda and is looking to add Sapporo to Osaka-Itami in 1999 with the addition of a second aircraft. "We're not looking to take market share, but to expand demand," says Air Do president Akira Nakamura, who claims to have $36 million in capital and access to $20 million more in prefectural soft loans.
Pan Asia Airlines has outlined its new business plan to launch a Fukuoka-based operation from April 2000 using two leased Boeing 737-400s. "If we can get MoT permission, we would like to start with international services to Seoul and Pusan in South Korea, as well as to Okinawa, Miyazaki and Nagoya," explains chief executive Hiro Hattori. It has so far raised ´128 million out of the ´500 million initially needed and has had to postpone a 1999 start date to seek further investors.
Southern Cross has also delayed its entry by 12 months to July 2000, as it tries to increase a ´50 million capitalisation to ´300 million. "Japan's economic difficulties has forced us to revise our timetable," says manager Yasuma Unten. The Okinawa-based company is planning to fly four-times daily from Naha to Haneda, using two leased 737-700s.
Source: Flight International
