Japan: Airlines allowed to cancel unprofitable domestic flights

Event

Under a newly-introduced system, airlines in Japan will be able to cancel domestic flights based on reservation rates, which may result in customers being unable to take the flight they originally booked. Airlines are legally required to report to the Land, Infrastructure, Transport, and Tourism Ministry if they change their original flight plans, including the cancelation of flights.

Context

The new framework enables airlines to cut operational costs that are likely to lead to losses due to insufficient revenues from passenger fares. However, it may become necessary for customers to rebook their flights. The new system was requested by low-cost carriers, which are engaged in a price war.

Advice

Travelers in Japan are advised to contact their airlines for additional information.