Qantas buys into Jeststar Japan

Business, Normal

The National, Tuesday November 5th, 2013

 QANTAS Airways and Japan Airlines last Thursday acquired a stake in Jetstar Japan to support the airline’s growth.

Jetstar Japan is a joint venture between the Qantas Group, Japan Airlines, Mitsubishi Corporation and Century Tokyo Leasing Corporation. 

A combined equity injection of ¥11 billion (equivalent to about K275 million) in the form of non-voting shares, will be equally shared by the two major shareholders, Qantas and Japan Airlines.

The investment will increase Qantas and Japan Airlines’ economic interest from 41.7% each to 45.7% each. 

Mitsubishi and Century Tokyo Leasing will have 4.3% each of the low-cost carrier, down from 8.3% each. 

The equity injection would support Jetstar Japan’s future fleet and infrastructure growth, enabling the carrier to capitalise on the significant potential of the low- cost carrier market in the world’s third largest economy. 

Jetstar Japan began operations last July and is now operating 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.