The train route between Tokyo and Osaka is the world's busiest route. Shinaknsen, Japan's bullet train born in 1964, whizz 120,000 passengers a day.
Between March and August 2012, three low-cost airlines will have started operations in Japan. But compared with Europe and other parts of Asia, where budget airlines have quickly gained market share, in Japan the low-cost model is expected to take time to take off.
There are three main reasons for this.
1. All three newcomers have established parents and such ties have usually hobbled low-cost airlines elsewhere.
Peach : part-owned by ANA
Air Asia : part-owned by ANA
Jest star : one-third owned by JAL
2. airport costs and fuel taxes in Japan remain among the highest in the world.
3. it is difficult to convince finicky Japanese passengers that low fares make up for the lack of comfort and convenience they are used to. Jetstar and Air Asia are using Narita airport as their hub, which is expensive and time-consuming to get to from Tokyo. The shinkansen zoom out of the city centre, with no reservations needed.
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