Qantas Airways and Japan Airlines (JAL) are reportedly planning to tip more cash into their low-cost joint venture carrier, Jetstar Japan.
According to reports from Japan’s Nikkei newspaper, the two Oneworld carriers are planning to take part in a yen (Y) 11 billion ($113 million) private placement exercise planned for November.
Qantas and JAL each hold 33.3% stakes in the Narita-based airline. Mitsubishi Corp and Century Tokyo Leasing Corp are the other shareholders.
A spokeswoman for Qantas told Flightglobal Pro that the carrier “is committed to the long term success of Jetstar in Japan”, but did not deny the reports of an additional investment in the carrier.
“As always, when we have something to announce we will announce it,” she added.
Flightglobal contacted JAL for comment, but did not receive a timely reply.
In August, Qantas said that the Jetstar group earnings before interest and tax for the year ended 30 June 2013 was impacted in part by start-up costs from Jetstar Japan.
Flightglobal Pro data shows that Jetstar Japan operates a fleet of 18 Airbus A320s and has seven more on order. It presently flies on domestic services in Japan, and plans to launch services to nearby destinations in China, South Korea, Taiwan and the Philippines.
The news on Jetstar comes only days after rival budget carrier Japan AirAsia suspended operations following the termination of the joint venture between AirAsia and All Nippon Airways (ANA).
That carrier, which is now wholly owned by ANA, will be relaunched in December as Vanilla Air. It will also be based at Narita.