Skymark to Increase Competition on Okinawa – Miyakojima

Japanese carrier Skymark Airlines is to introduce a five times daily link between Okinawa and Miyakojima from September 15, a route already served 13 times a day by Japan Transocean Air and ANA Group subsidiary Air Nippon. The arrival of Skymark will see available capacity on the route increase by around 12 per cent.

There is a very strong demand on this domestic route with around 728,000 O&D passengers travelling between the two cities in the past year. The market is currently dominated by Japan Transocean Air with a 71 per cent share, while Air Nippon holds a 24 per cent share of the traffic, with a slightly weaker yield than its rival.

In the past year the market has grown by approximately one per cent, although more encouragingly yields have strengthened by around 8.5 per cent with average fares increasing to an estimated $205 each way. The additional capacity in the market is sure to lead to some form of price competition and will likely lead to average fares falling.

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