Market share of airline

airline image airline market share foreign visitors

JAL and ANA occupy Japanese airline market!

  • JAL and ANA occupy Japanese airline market.
  • JAL started new routes from 2016 to catch ANA up.
  • The number of Passengers is increasing because of foreign visitors.

JAL(Japan Airlines Co) and ANA(All Nippon Airways Co) occupy the market of airline in Japan. JAS(JAPAN AIR SYSTEM CO) started in 1971, but it was merged by JAL in 2004 because of business slump. JAL was also in a financial crisis in 2010 because of loose management, it restarts by helping of IRCJ(Industrial Revitalization Corporation of Japan).

On the other hand, three LCC(Low-cost carrier) started in 2012, such as Jetstar, Peach and Vanilla Air. It became the talk of Japan since their tickets were cheaper than tickets of FSC(Full Service Carrier). They are not independent LCC because JAL and ANA have a share in these LCC. Though three LCC started, Skymark Airlines which started in 1996 went bankrupt in 2015. In addition, Peach and Vanila Air announced in 2018 integrating Operations by 2020. Japanese LCCs stands at the crossroads.

airline market share

The market size of airlines in Japan is 3.4 trillion yen(about 3.4 billion dollars) which is the total sales of eight airline companies. The sales of JAL and ANA accounts for 90% of the sales of eight airline companies. JAL and ANA account for about 70% of the passngers in Japan. 120 million people traveled by plane, 100 million passengers take domestic flights and 20million passenger take international flights in 2016. ANA accounts for 39%, JAL accounts for 33% of the domestic flight market. The others account for 30% of this market.

JAL was restricted to have a new route and invest something by Japanese government because IRCJ injected public funds 350 billion yen(about 350 million dollars) into JAL from 2010 to 2016. However, JAL has new routes after 2016, such as from Haneda to NY, from Narita to Melbourne and Hawai. In addition, it has a route from Narita to Guam in 2018.

By the way, the number of passengers exceeds the number of them in 2006 now though the number of passengers decrease after the finacial crisis in 2007-2008. Especially, three route from Tokyo to Shinchitose(Sapporo), Osaka and Naha(Okinawa) are popular than other routes.

the number of foreign visiors

It is said that the demand of airlines decrease because of aging society. However, the number of foreign visitors to Japan is incresing year by year. About 20 million visitors travel Japan every year. In addition, Japanese government promote to increase visitors from Haneda Airport. Haneda Airport is nearer than Narita Airport, it takes about 40 minutes from Haneda Airport to Shinjyuku or Ginza. Not only foreign visitors but also Japanese can easily go travel by airplane.

JAL and ANA are listed on the Tokyo Stock Exchange. Foreign investors can invest in them on NYSE by ADR(American Depositary Receipt). In addition, they can do it through many ETFs, MAXIS Nikkei 225 ETF(NKY), iShares MSCI Japan ETF(EWJ), Wisdomtree Japan Hedged ETF(DXJ) and more.