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the LCC space, which started to develop
properly only in 2012. Given the late start,
LCCs currently comprise only about 8% of
the domestic and 11% of the international
travel markets, respectively, much lower
than their penetration in Asean and South
Asia which, in turn, lag behind Europe
and North America. Experts predict that
in the next 10 years, the Japanese LCC
market share will grow two-and-a-half
times domestically and three times
internationally.
AirAsia Japan is certainly prepping itself to
be a part of this growth, leveraging AirAsia
Group’s wide network to differentiate itself
from local competitors. It is also working
very closely with Centrair Airport, the
local government and business partners
to build a home-grown brand that the
The choice of setting up base in Nagoya
was strategic. Although the low-cost
carrier (LCC) market in Japan is gradually
increasing, its market share in Chubu
Centrair International Airport is still
relatively low, at 13%, compared to,
say, Kansai International Airport in
Osaka, where it accounts for 44% of the
market; and Narita International Airport,
Tokyo, where it is 30%. AirAsia Japan is,
moreover, the only LCC to actually have its
operational base in Nagoya.
Japan, as a country, also represents a
strategic choice for our latest international
AirAsia airline venture. As our easternmost
affiliate, it pushes the geographic
boundaries of destinations we can reach
via our four-hour flights. In addition, Japan
is still relatively virgin territory within
local community trusts and comes to love.
It is already investing in building strong
ties with the local community. Together
with the airport, it organised an ‘airline
school’ explaining to students how an
airline operates. On a separate occasion,
Allstars visited local schools to talk about
careers in aviation.
Going forward, AirAsia Japan seeks to
expand its capacity both domestically
and in the international space, filling in
demand wherever it arises. Already, it has
pinned Taipei on its drawing board. By the
time we report on our associate in Japan
this time next year, we feel confident of
having much to say, about many new
destinations, not just Taipei.
LCC MARKET SHARE
IN NAGOYA
13
%
LCC MARKET SHARE
IN OSAKA
44
%
LCC MARKET SHARE
IN TOKYO
30
%
[ ]
AirAsia Group Berhad
BUSINESS REVIEW
133