Japanese airlines eye low-cost services to drive post-pandemic growth

While uncertainty remains over when — or if — travel demand will make a full-fledged recovery from the coronavirus pandemic, Japan's two major airlines are positioning themselves to take advantage of any upturn with a punt on low-cost services. With leisure demand expected to recover much faster than business travel, ANA Holdings and Japan Airlines are both strengthening ties with low-cost carriers. But the move by the two airlines, which have established themselves as full-service carriers, could be a double-edged sword, aviation experts say. ANA Holdings, the parent company of All Nippon Airways Co, is planning to launch a new LCC brand in the year to March 2023 with flights connecting Japan with Southeast Asia and Oceania. Its domestic rival JAL, meanwhile, said on Friday it will make Spring Airlines Japan Co a consolidated subsidiary in June. The two budget carriers reflect JAL's strategic shift away from what used to be seen as the Japanese airline's cautious stance on LCCs.<br/>