Reports from Tokyo indicate Japan Airlines is once again considering establishing a domestic LCC through a joint venture with Australia’s Jetstar.
JAL chairman Kazuo Inamori has previously dismissed the idea of launching a budget carrier but circumstances have changed following the economic downturn in Japan and the recent earthquake disaster.
JAL this week completed its court-monitored bankruptcy restructuring which requires the layoff of 16,000 staff by March 31, the disposal of 103 aircraft and the scrapping of 49 routes.
JAL also plans to cut frequencies due to the fall off in traffic following the March 11 earthquake and tsunami.
JAL’s international traffic is down 25 percent while domestic traffic has dropped 28 percent compared to March 11-27, 2010.
JAL will cut 74 weekly flights on 11 international routes in April.
