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Lifenet Insurance Survey Finds 60% Intend to Fly an LCC between Tokyo and Fukuoka

On February 27, Chiyoda Ward, Tokyo-based Lifenet Insurance Company announced the results of its LCC Survey.

The company, which offers online life insurance services, conducted a survey on general knowledge, interest in and experience using low-cost carriers (LCCs). Lifenet contacted men and woman aged 15 to 59 online via mobile phones over a two-day period on February 8-9 and collected 1,000 valid responses.

Sixty percent of respondents knew about LCCs. Around 10% had flown with one, many of whom reported being "satisfied" with the experience. Over 60% who have flown on an LCC for business responded that they would "choose an LCC for a flight of no more than 4 hours."

Fifty-five percent said that charges for services in the cabin were "acceptable for the low fares," but only 6.4% found delays acceptable. Respondents with LCC experience were highly permissive of LCC characteristics such as "fees for checked luggage," "narrow seats" and "internet-only bookings."

Survey results relating to the market's future growth showed that around 60% answered that they would "choose an LCC over the Shinkansen for travel between Tokyo and Fukuoka if fares remain at the same level" and that "the average number of overseas trips respondents would take each year if they could go anywhere for less than JPY 30,000 was 2.3 trips." Fewer than 60% of all respondents said they intend to use an LCC in the future and 84.5% of those with LCC experience replied that they "want to use an LCC in the future." Fewer than 60% answered that LCCs will "create a price war in the airline industry."

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