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.

A volcanic eruption in Eritrea is disrupting East Africa air travel. Recent images released by NASA show plumes of smoke billowing up from the Nabro volcano, and this plume of ash has quickly spread across the Horn of Africa , disrupting airline schedules and sparking health concerns. Nabro is a volcano in far southeastern Eritrea, near the border with Ethiopia and the city-state of Djibouti.

The volcano was long-dormant, but suddenly erupted last week. The ash plume is currently spreading westward toward Sudan, and has prompted US Secretary of State Hillary Clinton to cut short a visit to Ethiopia where she addressed the African Union. Several major airlines have canceled flights to destinations in the region as well. Addis Ababa's Bole airport remains open, and only Ethiopian Airlines flights to northern parts of the country and Djibouti have been canceled.

Air Canada has informed its unions that it intends to start up a new brand to compete with discount air travel airlines like Air Transat and Sunwing-Signature. This is good news for vacationers who want to travel cheaply to popular spots in Europe, Mexico and the Caribbean, as well as some big US destinations.

However, it's also possible that Canada's biggest airline could end up monopolizing the market and forcing out competitors. To begin with, though, Air Canada plans to devote only 10 planes to its new carrier, and this will likely have the effect of drivingn prices down as other airlines must compete to make their vacation packages more attractive. Canada' s air travel market is definitely heating up, as carriers like WestJet extend their focus eastward to the busy Toronto-Ottawa-Montreal corridor and offer new service to Orlando, Maui, Honolulu, Jamaica, Mexico and Fort Lauderdale.