Qantas Airways and Japan Airlines (JAL) have completed a Y11 billion ($112 million) equity injection into Narita-based budget carrier Jetstar Japan.
The two Oneworld carriers completed the transaction via a non-voting share issue, which takes their economic interests in the carrier from 41.7% to 45.7% each. As a result, Mitsubishi Corp and Century Tokyo Leasing’s stakes have each been diluted to 4.3% from 8.3%.
“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,” Qantas said in a statement.
Jetstar Japan started operations in July 2012 and Flightglobal’s Ascend Online database shows that it has a fleet of 18 Airbus A320s, with a further seven on order. Qantas says that the airline has carried nearly 3 million passengers and is the largest low-cost carrier operating in Japan.
The injection comes one day after All Nippon Airways cut its profit forecast for the 2013 financial year by 67%. The Star Alliance carrier had noted that high levels of competition in the domestic market have been driving down fares, while the depreciating yen has been pushing operating costs up.