Japan's three largest airlines have started to cut back their operations on domestic routes, following a decision by the Government earlier this year to ease regulations dictating where carriers can fly.
Japan Airlines and Japan Air System began their cutbacks this month, with the former suspending flights between Obihiro on the northern island of Hokkaido and Fukuoka and Sendai. The latter has also axed some flights between smaller cities in Hokkaido and the main south-western island of Kyushu.
All Nippon Airways (ANA) plans to decrease flights on 11 routes, cancel flights on a further five, and increase flights on four trunk routes. In total, 21 domestic routes will be cut and 33 others reduced by December.
"The easing of regulations by the Ministry of Transport in April as to where we are allowed to fly means that we can all now start cutting back on those routes which are simply not profitable enough to maintain" says ANA. "Many of the routes between the smaller cities are just not financially viable," the carrier adds.
All three are expected to reduce or suspend domestic flights beyond the cuts planned for this year. The extent of the cuts will depend on the reaction of rivals and the possible effect of start-up carriers.
"Which routes will be cut largely depends on whether airlines start encroaching on rivals' territory. Some routes only have enough traffic to justify one or two airlines, and, if a second or third decides to initiate flights, for sure someone will have to pull out," says ANA.
Source: Flight International