With Jetstar Japan gaining the stamp of approval from local regulators, the stage is now set for Japan’s first low-cost carrier (LCC) market battle to begin.

Jetstar Japan will be the second of three new LCCs to be established in Japan this year. The Ministry of Land, Infrastructure and Transport (MLIT) has granted an Air Operator’s Certificate (AOC) for the carrier, clearing the way for it to begin domestic service as planned on July 3.

The MLIT has already granted AOCs for the other two new LCCs, Peach and Air Asia Japan. Peach began service on March 1, and Air Asia Japan plans to debut on Aug. 1. These two carriers are part-owned by All Nippon Airways, while Japan Airlines (JAL) is part owner of Jetstar Japan. Peach is based in Osaka, while the others are based at Tokyo Narita.

Jetstar Japan says it will be conducting proving flights in May in the lead-up to its first scheduled flight. The carrier was established by Qantas subsidiary Jetstar and JAL, which each have a 33.3% share. Mitsubishi Corp. has a 16.7% share, after recently selling a 16.7% share to Century Tokyo Leasing Corp.

Originally, Jetstar Japan was slated to be the third of the three LCCs to begin operations. However, in February it advanced its launch date to slot in between the Peach and Air Asia Japan debuts.