Jetstar Asia-Jetstar Japan ties increase with new Clark-Osaka service

The Jetstar Group is boosting its presence in the Philippines-Japan market with a new service from Clark to Osaka operated by Singapore-based Jetstar Asia. The route will be the airline’s third fifth freedom route to Osaka, further strengthening the relationship between Jetstar Asia and Jetstar Japan.


Summary:

  • Jetstar is launching flights between Clark and Osaka in Mar-2018;
  • Clark-Osaka will become Jetstar’s fourth route between the Philippines and Japan;
  • Jetstar has used Jetstar Asia and fifth freedom rights for Singapore based carriers to expand in the Philippines-Japan and Taiwan-Japan markets;
  • Jetstar Asia has been able to leverage Jetstar Japan’s brand and distribution network in expanding in Osaka and launching services to Okinawa.

On 27-Mar-2018 Jetstar Asia plans to launch three weekly flights from Clark to Osaka Kansai. Jetstar began selling the new route on 27-Jan-2018 with one-way fares starting at only PHP1598 (USD31).

Jetstar Asia launched services to Clark from its Singapore hub in Nov-2017 with three weekly flights. The new Clark-Osaka sector will be an extension of the Singapore-Clark flight and become Jetstar Asia’s third fifth freedom route to Osaka (and its second fifth freedom route from the Philippines to Osaka).

Jetstar Asia currently operates 11 weekly flights from Taipei to Osaka and five weekly flights from Manila to Osaka. All 16 of these flights originate in Singapore but most of the traffic consists of local passengers. Clark-Osaka will have a similar passenger profile with most of the passengers consisting of local Philippines-Japan traffic.

Jetstar briefly operated nonstop flights in the Singapore-Osaka market from late 2012 to late 2013, using A330s. It has since only served the Singapore-Osaka market with A320s via Manila and Taipei.

Scoot launched Singapore-Osaka flights with 787s in Dec-2017, giving the market its first nonstop LCC option in four years. Jetstar Asia’s Singapore-Osaka traffic likely declined after the Scoot launch but Jetstar Asia should be able to easily offset these declines with more fifth freedom traffic to and from Osaka.

The two – and soon three – fifth freedom routes to Osaka from Jetstar Asia allow the airline to diversify its operation and rely less on the Singapore market, which has become extremely competitive. Philippine-Japan and Taiwan-Japan routes are generally higher yielding than similar length routes within Southeast Asia.

The three fifth freedom routes to Osaka also enable Jetstar Asia to benefit from Jetstar’s strong brand and distribution network in Japan, where Jetstar Japan is now the largest LCC.  It is no coincidence that Osaka is Jetstar Japan’s second largest base after Tokyo Narita. Jetstar Japan currently has six routes from Osaka including Manila.

Jetstar Japan operates three weekly flights on the Manila-Osaka route, giving the Jetstar Group a total of eight weekly flights in the Manila-Osaka market when including the five flights operated by Jetstar Asia. Jetstar Japan also operates one daily flight from Manila to Tokyo Narita and four weekly flights from Manila to Nagoya. Jetstar Asia’s new Clark-Osaka flight will therefore give the Jetstar Group 22 weekly flights in the Philippines-Japan market across four routes.

Singapore-Clark was one of three new routes launched by Jetstar Asia in late 2017 along with Singapore-Hat Yai and Singapore-Okinawa. Jetstar Asia is also leveraging synergies with Jetstar Japan for Singapore-Okinawa as Jetstar Japan serves Okinawa from Osaka, Nagoya and Tokyo Narita.

Clark-Osaka will be the fourth new route for Jetstar Asia in less than six months. However, the LCC has not been adding capacity overall or expanding its fleet. The new routes are made possibly by reductions on other routes and the suspension of Singapore-Perth.

See related report: Australia-Asia connections improves as Jetstar Asia resumes network growth which includes Okinawa