Competition in Japan's nascent low-cost carrier sector is heating up dramatically, as the main players push further into each other's home bases to find new growth opportunities. True LCCs are such a recent phenomenon in Japan's domestic market that they initially had little network overlap. However, the latest moves by Jetstar Japan and Peach highlight their increasingly head-to-head rivalry. While Peach plans to open a new hub in Jetstar's main base at Tokyo Narita Airport, Jetstar is launching its first international service from Peach's stronghold at Osaka Kansai International Airport. Jetstar Japan and Peach have emerged as the largest of the handful of LCCs launched in this market since 2012. While initially selecting different hubs, it was inevitable they would compete more vigorously on the same routes. Peach already has flights between Kansai and Narita, but now intends to up the ante by introducing flights from Narita to other domestic destinations. Like Jetstar Japan, smaller LCCs Spring Airlines Japan and Vanilla Air are also based at Narita.
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