Qantas and Japan Airlines (JAL) have increased their equity stakes in low-cost subsidiary, Jetstar Japan.
An extra JPY11 billion (US$112 million) has been injected into the Tokyo-based carrier, shared equally between Qantas and JAL. This will increase two carriers’ stakes in Jetstar Japan from 41.7% to 45.7% each. Mitsubishi and Century Tokyo Leasing will now each hold a 4.3% stake in the business, down from 8.3%.
In a statement, Qantas said the equity injection will “support Jetstar Japan’s future fleet and infrastructure growth”.
Jetstar Japan commenced operations on 1 July 2012 and now operates a fleet of 18 aircraft to nine domestic destinations. The airline expects to grow its fleet to 24 aircraft, with funding for each aircraft already secured. It has carried nearly three million passengers since commencing operations, becoming the largest low-cost carrier operating in Japan.
It will soon be challenged however, by ANA’s newly rebranded low-cost carrier, Vanilla Air. The airline, which replaces Jetstar Japan’s former rival, AirAsia Japan, will officially launch on 1 November 2013 with services to commence from Tokyo Narita Airport in December 2013.
In June this year Qantas reduced its equity investment in Jetstar Hong Kong from US$99m to US$66m, following the arrival of Shun Tak Holdings as a new shareholder in the venture.