A new cheap flight option in Asia will soon be available thanks to a partnership between All Nippon Airways and AirAsia. The two carriers are establishing a joint low-cost airline called AirAsia Japan, which will be based out of Tokyo's Narita International Airport and begin operations next year.

The company will offer cheap flights within Japan and other regional destinations. The Japanese travel market is rapidly changing thanks to deregulation and increased competition between air travel providers and their road and rail-based rivals. Low cost carriers like AirAsia are likely to thrive in this environment. They are the first budget carrier to be based out of Narita, but the airport has ambitious expansion plans which include the addition of many more discount carriers and foreign airlines. Japan does have some cheap domestic carriers like Air Do and Skymark, but these have been unable to compete with deeply discounted fares from US and European budget airlines.