Japan Airlines (JAL) has announced its intention to establish a new low-cost carrier (LCC) business for the international market. The official creation of the new airline, whose name has yet to be decided, is tentatively scheduled for July 2018.

In accordance with the FY2017-2020 JAL Group Medium Term Management Plan, the carrier is seeking to develop and cultivate new business opportunities. The new LCC business will specifically feature international routes with medium to long-haul flights.

The new carrier will be a consolidated subsidiary of the JAL Group operating flights from Narita International Airport to selected destinations in Asia, Europe, and the Americas. The carrier will initially operate two Boeing 787-8s and is targeting to launch commercial flights from the summer of 2020 when Narita Airport plans to complete enhancements to its facilities.

The new entity will complement JAL's existing Jetstar Japan joint venture with Qantas, which operates a fleet of A320s on mainly domestic routes. JAL says it hopes the new business will create new demand, working along with the services provided by Jetstar Japan.

In alignment with the company`s Medium Term Management Plan, the LCC business is part of JAL's “10 Year Grand Design” strategy where the company will accelerate growth through innovation, while contributing toward the country`s target to welcome new inbound visitors in the next 3 years and beyond.