The company ceased operations on 9 April 2008, after over a billion Hong Kong dollars in losses. By mid-2013, these new LCCs had been operating at a unit price of round eight yen per seat-kilometer, in comparability with 10–11 yen per seat-kilometer for domestic legacy airlines. However, their unit cost was nonetheless much larger than the 3 yen per seat-kilometer for AirAsia in Malaysia, due to the higher price of touchdown fees and personnel in Japan. Often this CASM benefit has been attributed solely to the lower labor costs of the newly employed and decrease pay grade employees of new start-up carriers, corresponding to ValuJet, Midway Airlines, and their like.
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