Australia’s Qantas Airlines, Japan Airlines Ups Stake in Jetstar Japan
By Esther Tanquintic-Misa | November 1, 2013 10:50 AM EST
From 41.7 per cent, the two companies will seek to up their controllership into Jetstar Japan by 45.7 per cent through a combined financial injection of A$120 million (US$113.6 million).
Consequently, stake controllership of other partners Mitsubishi and Century Tokyo Leasing will decline 4.3 per cent, down from the previous 8.3 per cent.
Qantas, in a statement to the Australian Stock Exchange, said the equity injection will "support Jetstar Japan's future fleet and infrastructure growth," which particularly meant funding aircraft purchases and infrastructure developments.
Jetstar Japan began operations in July 2012. It expects to grow its domestic destinations to a fleet of 24 planes from 18 planes that were sourced in just 18 months.
Jetstar Japan's fleet is primarily composed of 180-seater A320s.
However, Qantas might face delays in the additional lineup, spurred by corresponding interruptions in the opening of its Osaka hub at Kansai International Airport.
Masaru Onishi, JAL chairman, had said in June at the IATA's annual meeting that its success depended on the timing of international short-haul routes to destinations such as Taiwan, China and South Korea.
Total number of passengers carried since start of operations hit 3 million passengers.
According to Macquarie Equities, this latest injection by Australia's Qantas in various Jetstar branches in Asia correspond to $277 million.
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