Tight Squeeze: JAL's Budget Carrier to Pack in 9 Across on 787s
One of Asia's best airline's is lowering its standards. In May, Japan Airlines (JAL) announced it would be launching a budget carrier, and now its executives are planning on making serious cutbacks to passenger comforts for the new airline.
JAL plans on launching the low-cost carrier, temporarily named TBL Co. Ltd., in the summer of 2020 — just in time for the Tokyo Olympic Games. It will use two Boeing 787-8s, likely taken from JAL's current fleet that contains 29 of the widebody jets.
The Oneworld carrier is one of two airlines that's configured its aircraft in a less dense 2-4-2 configuration for a total of eight seats across — with some seats measuring 19 inches wide. TPG contributor Katie Genter said JAL's 787-8 is "hands down the best economy hard product" she's experienced.
Now, it plans on densifying the economy layout on aircraft for the new airline, turning it into a 3-3-3 configuration with nine seats across. ANA is the only other airline with some 787s laid out in a 2-4-2 configuration, although it's moving toward a nine-across as well.
Right now, there are between 161 and 181 economy seats on JAL's 787s plus 38 to 52 business and 35 premium economy seats, but the new layout will have 290 to 300 seats in coach.
JAL VP of global sales Steve Smith said that one of the airline's primary reasons for starting a low-cost carrier was that its forecasts revealed that 50% of both Asian, European and North American long-haul markets would be taken by low-cost carriers.
"That's one in every two seats," Smith said. "We are a high-yield carrier and we are missing out on a big part of the market."
The budget carrier will operate long- and medium-haul flights to the Americas, Asia and Europe. Following suit, JAL competitor ANA plans on creating Japan's largest low-cost carrier under the "Peach" brand by March 2020 — merging the current Peach fleet with Vanilla Air's short-haul fleet of A320s.
The airline also wants to greatly expand its route network, adding more than 150 new cities to increase its current offering from 343 to 500 overall. It plans on doing this mostly through partnerships and joint-ventures with other airlines like American, British Airways, Iberia and Hawaiian. It's even working on a partnership with the giant SkyTeam carrier China Eastern Airlines.
H/T: Air Transport World
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.