Japan's iconic Shinkansen looks to reinvent itself amid labour crunch, growing train ridership
Japan's famous bullet trains are seeing a surge in ridership, driven by record tourist arrivals and the World Expo in Osaka. Passenger numbers for its busiest route rose 5 per cent during the recent Golden Week, from a year ago. But the Shinkansen is under growing pressure to reinvent itself. CNA's Michiyo Ishida has more.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Independent Singapore
34 minutes ago
- Independent Singapore
Changi Airport too costly for a budget airline like Jetstar? The prospects and pitfalls for low-cost carriers
Singapore-based Jetstar Asia, one of the first three budget airlines to operate out of Changi Airport, is finally calling it a day. Valuair, the earliest operator, launched in May 2004 but later merged with Jetstar Asia. Tiger Airways, which also began in May 2004, eventually merged with Scoot. Jetstar Asia, which commenced operations in November 2004, is now shutting down — with Changi Airport deemed too costly for the low-cost carrier. The airline will cease operations on July 31, grounded by 'rising costs and competition in the region,' according to a statement on its website. Parent company Qantas Airways, however, has been more candid. The 'unsustainable' cost of operating from Singapore's Changi Airport was a key reason behind the decision to close Jetstar Asia, Bloomberg reported, citing Qantas executives. Quantas said: 'All [500] affected Jetstar Asia employees will be provided redundancy benefits as well as employment support services. Qantas is also actively working to find job opportunities across the Group and with other airlines in the region.' This is not the end of the road for the Jetstar brand. Jetstar Airways — Qantas' wholly owned budget carrier based in Melbourne — and Jetstar Japan, a joint venture with Japan Airlines, will continue to operate. Both airlines will maintain flights to East and Southeast Asia, undeterred by mounting competition in the region. See also Morals and Society Jetstar Asia is bowing out after reportedly turning a profit in only six of its 21 years in operation. The decision comes after Changi Airport raised fees on April 1 to help fund a S$3 billion upgrade. That hike 'had an impact on the business,' Jetstar group CEO Stephanie Tully told reporters. Cash for Qantas The closure will allow Qantas to redirect funds. As much as A$500 million (S$327 million) may now be channelled into its fleet renewal programme. Jetstar Asia's 13 Airbus A320 aircraft will also be redeployed to Australia and New Zealand. Qantas CEO Vanessa Hudson is prioritising the group's largest market — the Australian domestic network — and juggling assets to support the biggest aircraft order in Qantas history. The airline has nearly 200 new planes on order. Jetstar Asia, 49% owned by Qantas, is expected to post an operating loss of A$35 million this financial year. Qantas said in a statement it would take a one-off charge of around A$175 million over two financial years due to the closure. Changi Airport said it was 'disappointed' with Jetstar Asia's decision but respected the company's commercial considerations. With Jetstar Asia's exit, the Singapore Airlines Group will be the sole Singapore-based airline operator, though many foreign carriers continue to fly in and out of the city-state. Changi welcomed eight new passenger airlines in 2024. As of April 1, 2025, about 100 airlines were operating more than 7,200 weekly scheduled flights from Changi, connecting Singapore to roughly 170 cities worldwide. The airport handled 67.7 million passenger movements in 2024 — with budget carriers accounting for about a third of the traffic. Budget airlines' growing market and risks Low-cost carriers have expanded rapidly in Asia over the past two decades. Today, there are more than 50 budget airlines across the region. In markets like India, Thailand, Malaysia, Indonesia, the Philippines, and South Korea, they dominate domestic air travel. IndiGo is now India's largest domestic airline, with nearly 1,000 Airbus aircraft on order and a growing international network. Malaysia's AirAsia is another major player with extensive regional reach. Even full-service carriers have launched budget subsidiaries. Singapore Airlines created Scoot, Qantas established Jetstar, Lufthansa operates Eurowings — and legacy airlines from Canada to China have followed suit. These ventures reflect strong demand for affordable air travel. But the market isn't fail-safe. Budget airlines, despite high demand, remain vulnerable. Malaysia's MYAirline shut down in 2023. Canada's Jetlines and Lynx Air both folded in 2024, along with LIAT in the Caribbean. Budget carriers have also collapsed in Armenia and Uzbekistan. In the U.S., low-cost operators like Frontier and JetBlue are struggling, while Spirit Airlines has filed for bankruptcy. There is clearly a market for budget airlines — but the business remains brutally competitive and unforgiving. Carriers may take off with promise, but only the most resilient survive the headwinds. Jetstar Asia's exit is a sobering reminder: in the cutthroat skies of low-cost aviation, even experience and demand offer no guarantee of survival. Featured image from Wikimedia Commons (for illustration purposes only)
CNA
2 hours ago
- CNA
More Chinese youths hiring companions for sightseeing and friendship in domestic travels
SHANGHAI: Shenyang resident Shi Yunlin travelled nearly 2,000km to Shanghai to visit mainland China's only Disneyland theme park last month, where she indulged in sightseeing and taking rides. However, the 23-year-old teacher did not have a partner or a friend for company. Instead, she hired a local companion via social media to guide her around the park. 'My friends are all working, so it's not always convenient for them,' she said, adding that she felt bored travelling alone and wanted company for her trip. 'It's nice having someone to chat with and hang out together, just like being with a friend,' she said. HIRING A TOUR GUIDE AND A FRIEND Shi is part of a growing trend of young travellers within China who are hiring local companions, or personal guides, as they visit other cities. The resurgence in domestic tourism following the COVID-19 pandemic has seen Chinese travellers making more than 5.6 billion local trips last year, up 15 per cent from a year ago – and approaching the peak of 6 billion trips in 2019. Shi's guide for her trip was Chen Ziping, a 21-year-old university student who has worked as a freelance local companion at Disneyland for more than four years. Shi told CNA that hiring Chen made her visit to the theme park much more convenient, easing her exploration and allowing her to get the most out of her time in the vast compound. 'In a place as big as this park, when I can't find something, he helps me navigate quickly. He also knows when the queues are shorter,' Shi said. Chen's fees start from 1,000 yuan (US$140) for one to two people and 1,188 yuan for three visitors per day. 'At Disneyland, people usually come in twos or threes — with friends or as couples,' said Chen, noting that solo travellers might find it boring to wait in line alone. Another local companion, Hao Yue, specialises in bringing clients around Shanghai, helping to take photographs and occasionally dining with them. The 23-year-old said that aside from part-time income, the gig allowed her to make new friends and gain more knowledge. 'For example, one of my recent clients worked in finance and shared some insights. I learned a lot,' she added. Hao charges 80 yuan per hour or 500 yuan per day. Her fee is about a quarter more than her average daily pay at her full-time job in a media company in Shanghai – a first-tier city with the highest wages in China. PAYING FOR CONVENIENCE A 10-year study published in January this year by the Fudan Development Institute, which looked at the spending habits of internet-savvy youths in China, found that they were more willing to splurge on food and entertainment that provided instant emotional gratification. In comparison, they were less interested in spending on big-ticket items like cars, renovations and houses, according to the think tank. Youths starting out in the workforce do not get much vacation time, with those who have worked between one and 10 years getting as few as five days of annual leave, according to statutory guidelines. The limited amount of leave that youths get could make them more willing to spend on solutions for a more worthwhile holiday, said experts. This is especially true when touring massive attractions with steep entrance fees like Shanghai Disneyland, which spans about 4 sq km. The park offers its own VIP tours, including providing visitors with fast passes to skip queues for rides and attractions. However, the service costs much more than what some unofficial companions charge. Fresh graduate Chai Xiaoying, for instance, charges 500 yuan per day to show up to two people around, with her rate rising to 300 yuan per person during the summer vacation period. In comparison, fees for the official VIP experience start from 4,400 yuan per visitor and each booking requires a minimum of a group of three. Prices may vary depending on the season, according to the theme park. Chai said she started her companionship services after realising she was not suited for the modern logistics management sector that she majored in. 'I thought, 'Worst case, I'll just have fun for two weeks'. But after I started, I found it was actually quite good,' she added. While she was initially sceptical about the gig, Chai said that the demand is now good enough to turn into a viable full-time job. INCREASED DEMAND Those dabbling in such tour services said that business is thriving, with their customer base growing to include couples and families with children. The market size of the companion economy could reach 50 billion yuan by the end of 2025, according to state media quoting a report by Chinese securities company Sinolink. Chen, the university student, has even enlisted the help of a schoolmate and hired an assistant to take bookings and run errands, as demand for his services increase. He said he plans to be a full-time local companion after completing his university education, noting the current difficulties experienced by graduates in their job hunt. 'I've discussed this with my parents. I told them the income is decent,' he added. Official data released two months ago showed that China's youth unemployment rate stood at about 15.8 per cent for those aged 16 to 24. Chai, the fresh graduate, said there will be more demand for local companion services as Shanghai Disneyland expands with new zones and rides over the next few years, along with the opening of new theme parks like Legoland next month. 'There's room for growth. Disneyland will only get better, and if we grow with them, there'll be lots of opportunities,' she said.
CNA
5 hours ago
- CNA
CNA938 Rewind - Jetstar Asia's exit: How much of a vacuum will this leave in the aviation space?
CNA938 Rewind Play Jetstar Asia's closure is a bit of a blow for travellers with the loss of another low-cost carrier in the region. This is especially given there are four routes that are exclusively operated by Jetstar Asia – Broome (Australia), Labuan Bajo (Indonesia), Okinawa (Japan) and Wuxi (China). How much of a vacuum will this closure leave for travellers and Changi as an air hub? Andrea Heng and Hairianto Diman chat with Ellis Taylor, Asia Editor at Cirium to find out.
