Jetstar offers cut price Shanghai to Tokyo flights

Jetstar Japan Co's first Airbus SAS A320 aircraft sits in a hangar at Narita Airport in Narita, Chiba Prefecture, Japan. Provided to China Daily

Jetstar 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 expand its international footprint and meet surging travel demand from Chinese tourists.

The new route, 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 new route.

"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 new route 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 low-cost 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 from Haitong 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.