Japan Airlines Gathers Tata Group In India

Japan Airlines Gathers Tata Group In India

Japan Airlines Gathers Tata Group In India. The Japanese flag carrier will expand its reach in fast-growing India by partnering with the Tata Vistara Group airline, the latest step in the airline's aggressive international expansion.

JAL announced plans on Friday to share code with Vistara on Japan-Delhi flights, as well as domestic service within each country by the end of fiscal year 2018. Carriers are planning to link their mileage programs for the same year or later.

As more Japanese companies set up in India, both airlines expect increased demand for travel between the two countries.

"India's growth stands out even among emerging economies, and Japanese travelers to India are increasing - and vice versa," said JAL Executive Vice President Tadashi Fujita.

India's largest conglomerate owns 51% of Vistara, which started flying in January 2015, while Singapore Airlines holds the remaining 49%. The full-service airline operates mainly from Delhi and flies Indian national routes.

JAL operates daily flights between Delhi and Narita Airport, but does not have a domestic network in India. The partnership will expand the coverage of the Japanese airline in India to 21 destinations.

JAL's rival All Nippon Airways flies to Delhi and Mumbai from Narita. The ANA Holdings unit has code-share agreements with the major local airline Jet Airways and links its mileage program to state-owned Air India, a member of the Star Alliance network.

JAL belongs to the airline alliance of Oneworld, which has no Indian company as a member. This led the company to look for an Indian partner. Vistara CEO Phee Teik Yeoh said the airline considers Japan a very important market, expressing the hope that the airline will finally have its own routes to Japan.

JAL launched an international offensive after being released from business restrictions linked to a 2010 government bailout. The Japanese Ministry of Transportation had limited the airline's investment and expansion of routes to support fair competition given the money of the taxpayer involved in the rescue.

Airbus A320neo Vistara Airlines

JAL's retained earnings for fiscal year 2016 amounted to almost 650 billion yen ($ 5,980 million at current rates), approximately double that of ANA, due to factors such as reduction of personnel and exemption from corporate tax based in the business rehabilitation law.

As restrictions were lifted in late March, JAL debuted a service that connects Tokyo Haneda Airport and New York - a high-performance route. On September 1, the company began flights between Narita and the Australian city of Melbourne, a route not offered by ANA. The company also begins to fly between Narita and Kona of Hawaii on September 15.

In July, JAL announced a partnership with Vietjet, Vietnam's top budget company. The Japanese company also offers business jet connection services in Europe in collaboration with a French company. The main airline is working frantically to make up for lost time under the post-rescue restrictions.

ANA also seeks to boost services on high-performance routes. The airline plans to increase service from Narita-Los Angeles to two return trips per day in October.