Qantas Airways has today provided an equity injection to 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 approximately A$120 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 per cent each to 45.7 per cent each. Mitsubishi Corporation and Century Tokyo Leasing will have 4.3 per cent each of the low cost carrier, down from 8.3 per cent each.
The equity injection will 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 commenced operations on 1 July 2012 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. Jetstar Japan has carried nearly 3 million passengers since commencing operations and is the largest low cost carrier operating in Japan.
In June this year Qantas reduced its maximum planned equity investment in Jetstar Hong Kong from US$99 million to US$66 million, following the introduction of a third shareholder into that venture.