An Okinawa-based Japanese business consortium is drawing up plans to launch an airline within three years, to operate domestic routes and, possibly, international services in the longer term.
A group of 32 island investors led by Okinawa Electric Power has established a new company called Southern Cross to undertake a feasibility study. A total of nine companies, including Koku Bagumi, Okinawa Bank, Ryukyu Bank and Ryuseki Oil, are underwriting the initial ´50 million ($425,000) cost of the project.
According to Southern Cross manager Satoshi Sho, the study focuses on issues which include examining suitable narrow or widebody types and domestic and international destinations to be served from Okinawa. The six-month study is intended to form the basis for a business operating plan for the as-yet-unnamed carrier.
The only firm route so far identified is between Naha, the island's capital, and Tokyo's Haneda Airport. Provisional plans call for the new airline to begin operations in April 2000 with a three-times-a-day service. This, however, is contingent upon sufficient slots being made available once a third runway is opened at Haneda in late 1999.
Other Japanese domestic destinations under consideration include Fukuoka and Osaka. Southern Cross has also been tasked with looking at the feasibility of operating on regional routes to Asia.
The study will also address support and maintenance. Following the example of Japan's other two new planned start-ups, Hokkaido International Airlines and Skymark Airlines, the new Okinawa venture is looking to All Nippon Airways or Japan Airlines for help.
Source: Flight International
