JAL Files PEX Fares for FY2008; Intending to Discount IATA PEX Fares by More Than 70%, Eying Abolishment of Lowest Price Limit
Japan Airlines submitted an application with Ministry of Land, Infrastructure and Transport on January 22 requesting Government approval for the economy class discount fares applicable from Japan to Hawaii, Guam, North and South America and Europe. Sale will start on January 23.
In view of the policy by MLIT to abolish the lowest price limit, currently imposed on the international carrier PEX fares, the airline is said to have filed certain Goku fares with a reduction of 80 percent of IATA PEX fares, the highest reduction of which is presently 70%.
The fare Goku 7 Type C for Tokyo/ Honolulu, for instance, is available from 53,000 yen and Economy Saver is from 90,000 yen. The fare Goku 14 Type C for Tokyo/ New York is available from 72,000 yen and Economy Saver is from 205,000 yen.
The difference between Type A, Type B and Type C fares may vary from one destination to another, but overall, the difference was about 8,000 yen in the second part of FY2007 while it will be roughly 10,000 yen for FY2008. The difference between the weekday and weekend fares was 10,000 yen in the second part of FY2007 while it will average about 14,000 yen for FY2008.
The Economy Saver fares also vary from one destination to another. The fare difference between the weekday and weekend travel for the transpacific route, for example, averaged 18,000 yen in the second part of FY2007 while the difference will become 20,000 yen for FY2008, reflecting a tendency of further fare increase. The Dynamic Pricing introduced last year, which is determined according to the number of unreserved seats available, will remain applicable also for FY2008.
JAL anticipates to meet the challenge of the combined strategy of the yield improvement and the expansion of traffic demand.
There has been no policy change by MLIT as to the abolishment of the lowest price limit and a relevant notice of the revision has not yet been issued by MLIT.
Source: Travel Vision
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