Destination Japan for low-cost Spring Air
By Winny Wang |
July 6, 2011, Wednesday
|
Print Edition
Print Edition
CHINA'S only budget carrier Spring Airlines plans to set up a subsidiary in Japan to gain a foothold in the northeast Asian travel market despite nuclear leak threats.
"To set up a subsidiary in Japan is on our agenda, which will enable us to park airliners in Japan to fly domestic routes as well as routes from Japan to northeast Asian countries," said Zhang Lei, a spokesman for the carrier, yesterday.
But the carrier may need to look for a Japanese partner as a foreign company can hold only a 30 percent stake in an airline in Japan, and it will take up to two years to gain approvals from Chinese and Japanese governments after an application in submitted, said Sun Zhencheng, Japan marketing director of Spring Air.
However, the company will face tough competition from Japanese airliners. All Nippon Airways has formed a low-cost carrier - Peach Aviation - in partnership with Hong Kong's First Eastern Investment Group.
Japan's Innovative Network Japan Airlines is considering an entry into the low-cost airline market by teaming with Australian airline Jetstar.
Spring Air aims to use lower prices to differentiate itself from competition. "Our ticket price will be lower than peers in Japan," Sun said.
The Shanghai-based carrier will also open a new route linking the Chinese mainland with Kyushu within this year after regular flights between Shanghai and Kagawa commence on July 15.
"Many airport operators in Japan have talked with us about opening routes. We will open a route to Kyushu this year and another route to Hokkaido later," said Sun.
The carrier will use Digital Garage to facilitate Japanese online payments.
"To set up a subsidiary in Japan is on our agenda, which will enable us to park airliners in Japan to fly domestic routes as well as routes from Japan to northeast Asian countries," said Zhang Lei, a spokesman for the carrier, yesterday.
But the carrier may need to look for a Japanese partner as a foreign company can hold only a 30 percent stake in an airline in Japan, and it will take up to two years to gain approvals from Chinese and Japanese governments after an application in submitted, said Sun Zhencheng, Japan marketing director of Spring Air.
However, the company will face tough competition from Japanese airliners. All Nippon Airways has formed a low-cost carrier - Peach Aviation - in partnership with Hong Kong's First Eastern Investment Group.
Japan's Innovative Network Japan Airlines is considering an entry into the low-cost airline market by teaming with Australian airline Jetstar.
Spring Air aims to use lower prices to differentiate itself from competition. "Our ticket price will be lower than peers in Japan," Sun said.
The Shanghai-based carrier will also open a new route linking the Chinese mainland with Kyushu within this year after regular flights between Shanghai and Kagawa commence on July 15.
"Many airport operators in Japan have talked with us about opening routes. We will open a route to Kyushu this year and another route to Hokkaido later," said Sun.
The carrier will use Digital Garage to facilitate Japanese online payments.
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