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If you’ve ever looked at low cost Europe to Asia flights, you’ll probably have noticed the same names cropping up time and again. Garuda, Turkish, China Southern. Well, soon there’s going to be a new name on the searches, as Japan Airlines LCC prepares for take-off.

It is anticipated that one in two seats of long haul flights between Europe and Asia will soon be owned by low cost carriers. In a bid to secure their share of the market, JAL are looking to increase the density of their traditionally spacious 787 configurations. They say this will allow them to reduce their fares by around 50%.

The new Japan Airlines LCC

At the start of August, Japan Airlines announced the establishment of a new corporate entity. This entity is designed to break into a market which Japan has so far struggled to do; the low-cost carrier market. The company, which so far is called simply TBL (to be launched), will use widebody aircraft to deliver long haul low cost flights between Europe and Asia.

Headquartered at Tokyo Narita Airport, the carrier will officially be launched with branding and its proper name early in 2019. JAL owns all of this company at this stage, although it has mooted that it’s in the market for other investors too. If all goes to plan, routes from this new airline will be operational from 2020, opening up new means of flying to Asia without spending a fortune.

Why Japan Airlines is not a low-cost carrier

Right now, when you think of a low-cost carrier Japan Airlines is not a company that particularly springs to mind. Mainly a high yield carrier, the company has 29 787’s in its fleet featuring one of the lowest densities of seating in the industry. Their 787-9 aircraft have a pitch of 33 inches and a width of 18.9 in economy, the widest configuration any airline has managed to get out of a 787.

To put this into context, Japan Airlines accommodates between 161 and 186 passengers on their 787-8 aircraft, and between 195 and 203 on the 787-9, depending on configuration. In contrast, American fit 226 on the 787-8 and 285 on the 787-9. Norwegian really pack them in, with 284 and 344 on the 787-8 and 787-9 respectively.

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This means Japan Airlines are operating at around a 20 – 40% lower capacity than their counterparts. For passengers, this is great… more legroom, better service, less noisy kids. In fact, the configuration won JAL the Skytrax award for Best Economy Class Seat in 2017. It almost certainly contributed to its placement as 16th best airline in the world, as well as its five star rating.

While such an indulgent strategy can be great for providing outstanding service and comfort, it alienates a huge proportion of the market who place cost ahead of comfort. If Japan Airlines are going to take on LCCs like AirAsia, clearly, they’re going to need to do something different.

How will Japan provide low cost Europe to Asia flights?

The answer is clear and simple. When you want to lower the cost of flights for everyone, you put more people on the flight. Speaking at a summit in Denver yesterday, Steve Smith, JAL’s VP for Global Sales, speculated that 50% of the seat market share in Asia will soon be owned by LCC. He believes that the 50% mark will be reached even sooner in Europe and North America.

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He commented that:

“That’s one in every two seats. We are a high-yield carrier and we are missing out on a big part of the market.”

In order to cut costs, JAL are planning to significantly increase the density of the seating on the two Boeing 787-8’s currently assigned to the new carrier. Instead of their usual roomy, comfortable cabin, they plan to increase the seating into the 290 – 300 seat range, which will make these some of the densest 787’s in the industry.

According to the Japanese operator, they’ll be able to lower their prices by around 50% per seat by adopting the sardine strategy. And it’s not like they’re the first airline to do this either. American Airlines are working to squeeze more space out of their widebody aircraft to keep ticket prices low. Many other carriers are too as they scramble to remain competitive in an industry increasingly dominated by low cost carriers and rising fuel prices.

When it comes to being a low cost carrier Japan Airlines seem to have a clear goal in mind, and a firm strategy of how to get there. Hopefully the new company will be distinctively different, leaving JAL firmly placed as a comfortable choice while the LCC targets the budget end of the market.