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JAL to launch low-cost carrier ahead of 2020 Tokyo Olympics

AFP  |  Tokyo 

Airlines (JAL) today announced plans to launch a budget airline, hoping to take advantage of an expected expansion in the nation's low-cost market ahead of the 2020

The new carrier would run between and major cities in Asia, the US and from summer 2020, said in a statement.

The carrier, which will be named later, will become a subsidiary of JAL, the firm said, adding it may seek other investors to expand its model.

has thus far limited its low-cost operations to its partial control of Jetstar Japan, which is owned by and Australia's Group.

With the new carrier, "the company aims to create new demand, working along with the successful services provided by Jetstar Japan", it said.

In March rival announced plans to integrate its low-cost Peach and to create the nation's biggest after Jetstar.

The middle-distance international carrier, which will be named Peach, is scheduled to begin services in in around 2020.

Japan's low-cost is expected to expand from about 10 percent of domestic flight passengers to some 30 percent in the near future, said.

The hopes to boost the number of foreign visitors from 28.7 million last year to 40 million in 2020 when the capital hosts

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 13:25 IST