Qantas Airways' partner on its low-fare Japanese airline Jetstar Japan is considering starting its own cut-price carrier, raising the prospects of it one day becoming a rival to Qantas in the country's growing budget market. Japan Airlines, or JAL, and Qantas set up Jetstar Japan six years ago, and were trailblazers in bringing the budget airline model to Japan, a country where bullet trains offer a compelling alternative to flying. Qantas and JAL each own 33% of Jetstar Japan, but JAL is now looking at starting a new, wholly-owned budget airline to compete better as Japan catches up with the rest of the world by embracing low-cost air travel, the company's vice chairman Junko Okawa said in media interview last week. Jetstar is the country's largest budget airline, operating 22 Airbus A320 aircraft flying around 100 services a day between 12 Japanese cities, and to four international destinations - Shanghai, Manila, Taipei and Hong Kong, while Qantas' wholly owned off-shoot Jetstar Australia flies several routes between Australia and Japan. JAL's new airline would be focused on longer services to Europe and North America - outside the range of Jetstar Japan's current fleet - by 2020, when Tokyo hosts the Olympic Games, according to an unsourced report in the Nikkei Asian Review. Neil Hansford, an analyst at Strategic Aviation Solutions, said that Qantas had provided all the expertise when Jetstar Japan was founded, and found it surprising JAL might now start its own budget airline. "It makes you wonder whether there’s a relationship problem between Qantas and JAL," he said.<br/>
oneworld
Finnair Korea GM Kim Dong-hwan said the carrier may begin a new flight service connecting Busan and Helsinki by the end of the year. "If we begin this new route departing for Helsinki from Busan, it will become the first direct flight from the Yeongnam area to Europe," Kim said during a press conference celebrating the 10th anniversary of the airline's service in Korea. "The Korea Airports Corporation and Busan Metropolitan City have been working together to help establish the new route. It will be put into service immediately if the Ministry of Land, Infrastructure and Transportation approves it." The general manager has been working to start the direct flight from the southeastern region of Korea to Scandinavia for the past five years. Finnair first began its flight service connecting Seoul to Helsinki in June 2008. "Starting June 1, Finnair will open a branch office in Korea. We will increase our direct flight services traveling from Seoul to Helsinki and develop sustainable services customized for Koreans," Kim said. Finnair has signed a contract with Korean chef Nam Sung-youl, who will be providing Korean and Scandinavian dishes for business class travellers.<br/>
American Airlines on Friday officially opened five new gates at O’Hare International Airport, the first major expansion of gate capacity in 25 years and what the city is calling the first step in the airport’s massive US$8.7b expansion plan. The 41,000-square-foot L concourse gate expansion project was built in 20 months and represents a $78m investment from American. The new gates serve large regional flights and expand American’s gate total at O’Hare to 71 from 66, said American spokeswoman Leslie Scott. At the ceremony, attended by American CEO Doug Parker and several Chicago aldermen, Mayor Rahm Emanuel noted that Friday also marked the end of O’Hare’s old 35-year lease agreement with the airlines that operate flights from the airport. New leases signed with the airlines earlier this year are expected to pay for the airport’s massive expansion. “We begin today writing a new era and a new chapter for the city of Chicago, for O’Hare and obviously for American Airlines,” Emanuel said. The new gate investment was announced in early 2016 and is part of a $1.3b infrastructure plan at the airport that is separate from the larger $8.7b project.<br/>