Japan Airlines (JAL) plans to establish a new low-cost subsidiary carrier in March, in the face of growing domestic competition. The new carrier hopes to cut air fares by up to 20% on trunk services to Sapporo and Fukuoka, by using foreign crews and flight attendants and scaling back in- flight services. It will operate two to three Boeing 737s, expanding to 12-15 aircraft by 2010.

JAL's subsidiary, Japan TransOcean Air (JTA), in which it has a 51% stake, is to take a 10% stake in the new carrier. JTA flies Boeing 737-200s, -400s and NAMC YS-11s on domestic routes.

Source: Flight International