Global Perspective
Our high-flying columnists from around the globe discuss LCCs in Japan, surpassing expectations in the Middle East, a new train in Italy, the effect of APD in the UK and 100 years of aviation in India
JAPAN LCCs enter Japan Tim Zandbergen
manager/sales and marketing department
TFK Corporation
Last year saw low cost carriers entering Japan in force. First Peach Aviation, followed closely by Air Asia Japan and Jetstar Japan. They join other incumbent Japanese domestic carriers in a now fiercely competitive market in which the outcome will take years to unfold.
Japan’s domestic market has traditionally been highly protected and overwhelmingly dominated by All Nippon Airways (ANA) and Japan Airlines (JAL). Paradoxically, these two carriers are now the main shareholders in the new LCCs – ANA in Peach and Air Asia, and JAL in Jetstar. The domestic market is
MIDDLE EAST Dynamism and diversity drive ME success
Linda Celestino Oman Air
The quality of the passenger experience is an ongoing discussion for the air travel industry, with much debate about how commercial priorities can be best balanced with ever-increasing passenger expectations. The necessity of providing fully lie-flat beds in long haul Business, the importance of regularly changing menus, designing signature dishes and refreshing wine lists, whether wi-fi should be provided and how it should be paid for, are all subjects of regular debate.
But it seems that, all too often, these discussions are conducted in a disjointed way, with conclusions reached on a one-size-fits-all basis. The reality,
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experienced by airlines that operate across different cultures, demands a more nuanced approach taking account of what customers from very different markets want and expect. Whilst markets evolve and demands change, cultural differences and expectations remain. So designing seamless, end-to-end services which effectively represent an airline’s brand, whilst also meeting and surpassing the expectations of customers from diverse cultures, is a major challenge. Addressing these issues alongside the constant pressure on airlines to reduce weight and environmental impact, increase operational efficiency and provide
a workplace that functions well for staff, both on the ground and in the air, can turn that challenge into ‘a hall of mirrors’.
Some airlines are finding their way through this complicated process and are delivering strategic brand strategies which focus on quality, operational effectiveness and surpassing the expectations of customers from very different parts of the world. Perhaps because they are within reach of Europe, Asia, Africa and, of course, the Gulf – they tend to be from the Middle East, where the relative youth of the carriers drives a sense of ambition, dynamism and hunger for success that airlines from other regions have often forgotten.
characterised by most flights being under two hours, and both full service carriers and LCC offer primarily inflight options based on a BOB basis. The differentiation then is largely price where, of course, LCCs have the upper hand even though many Japanese consumers remain loyal to their traditional brands.
LCCs receive detailed coverage in the local press, which the Japanese closely follow, making a real impact on brand image. As it currently stands Air Asia is clearly lagging behind with poor on-time performance, cancellations, and subsequent declining load factors.
Jetstar too has its own challenges but is doing better adapting to the local market, but so far the frontrunner is surprisingly Peach Aviation with solid consolidation of its hub at Osaka, its high load factors, on time performance, and careful route selections.
Now that the gates have been opened there will be no stopping further radical changes in the Japanese airline market and the long term does not look favourable to full-service carriers even though it appears that it will take some time to change Japanese consumer habits and service expectations.
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