Tokyo in hub and Spoke dreams of connectivity once lost

Victoria
By Victoria August 27, 2012 16:42

Tokyo in hub and Spoke dreams of connectivity once lost

All fun and games in Tokyo today as Japan Airlines (JAL) and All Nippon Airways (ANA) slug it out for HND slots. He two main Japanese carriers are vying for domestic slots at Tokyo Haneda International airport as 20,000 slots are added from March 2013.

The tough competition, which will also involve the likes of JetStar and others, should see a substantial premium paid for the slots. This is bad timing for Japan Airlines, for as many potential investors scan the operation in detail there is no question that failure to collect additional slots will be bad press but overpayment for the same will undoubtedly cause a similar reaction. It is also worth noting that many of these slots are for routes that JAL has in the past withdrawn from, is it therefore wise to make a return while competition is more intense than it was five or six years ago?

It is likely that ANA will ensure JAL has a hard time win or lose. JAL is caught in a bind, it wants to be seen as the airline for the Japanese people and as a part of this plan it has a strong wish to connect the cities of Japan to the main hub once again. It will be interesting if JAL go all out to try and keep their number one status at HND as to do so will prove costly and could end in failure (again). JAL might be best served letting ANA spend and take the risks at this time.

ANA holds 37.4% of HND’s domestic slots and JAL holds 41.3%. Japan’s Land, Infrastructure, Transport and Tourism Ministry, which is overseeing the process, will announce a decision on the new slots before the end of October.

Victoria
By Victoria August 27, 2012 16:42
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