Air Do was one of Japan's first low-fare airlines, beginning services in 1998. It originally competed with Japan's major domestic carriers (All Nippon Airways, Japan Airlines, and Japan Air System), who were able to lower their fares to Air Do's level without seriously compromising corporate profits, thus driving Air Do out of the market. After two years of losses, the airline entered a code-sharing agreement with ANA, and now has the same general fare structure as the majors.
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