TOKYO (Reuters) - Japan Airlines Co Ltd (JAL) (9201.T) is launching a low-cost carrier offering medium to long-haul flights, aiming to tap growing Asian demand for budget air travel.

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FILE PHOTO: The logo of Japan Airlines (JAL) is seen on the tail fin of the company's airplane, at a Haneda Airport hangar in Tokyo, Japan April 3, 2017. REUTERS/Toru Hanai

The new airline will be based at Narita International Airport and will offer flights to Asia, Europe and the Americas, JAL said in a statement on Monday. The as-yet unnamed airline plans to start flying in “summer” 2020 with two wide-body Boeing 787-8 aircraft.

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FILE PHOTO: Logos of All Nippon Airways (ANA) Co and Japan Airlines (JAL) Co are seen at Haneda airport in Tokyo, Japan, October 14, 2016. REUTERS/Toru Hanai/File Photo

Budget flights have been slow to take off in Japan, which is dominated by full-service carriers JAL and ANA Holdings Inc (9202.T) and has a sophisticated high-speed rail network, but with growing numbers of Asia travelers taking to the air the two Japanese airlines are looking to expand their low-cost offerings.

ANA has said it will launch medium-length international flights, potentially flying as far afield as India, as it integrates its low-cost carrier units under the Peach brand name.

JAL, by contrast, holds only a minority stake in Jetstar Japan, a joint venture with Australia’s Qantas Airways Ltd (QAN.AX) which flies narrow-body aircraft. JAL said it would continue to invest in Jetstar Japan.

JAL said it plans to have outside investors in its new low-cost carrier which will be a consolidated subsidiary.

Other players are also looking to take advantage of Japan’s growing status as a tourist destination, with AirAsia Japan having relaunched and airlines such

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