Japan's budget airlines face business model challenges in post-pandemic world

With the airline industry struggling amid the coronavirus pandemic, the situation is particularly worrisome for low-cost airlines, which rely on high seat occupancy and aircraft operating rates. As they resume more flights that have been grounded since February, some are using their aircraft for cargo transportation and others are trying to balance infection prevention with profitability until social distancing rules can be safely eased and air traffic demand returns to pre-pandemic levels. But some aviation industry experts say that low-cost carriers will likely need to start devising new business strategies instead of just weathering the storm by hoping that demand will eventually come back. Peach Aviation plans to resume services on all of its domestic routes by June 19 after having drastically reduced its schedule, while Jetstar Japan is also restoring flights in stages following extensive cancellations. The two carriers are both asking passengers to wear face masks and suspending all in-flight sales. Jetstar will not take reservations for middle seats, the same preventive measure taken by Japan Airlines, though its officials say the arrangement is "a temporary response" that will be impossible to sustain unless it gives up the low-cost business model and raises fares. Peach Aviation is not taking special measures for customer spacing, saying its aircraft have sophisticated ventilation systems, though industry officials say it will still be hard to make profits with the current level of air travel demand. Story has details.<br/>