Australian flag-carrier Qantas Airways is aiming to divest its one-third share in budget carrier Jetstar Japan, selling its interest to Japanese shareholders in order to concentrate on its core operations.
Qantas says Development Bank of Japan will enter the ownership structure of the Tokyo Narita-based low-cost airline as a new shareholder.
It states that the bank has “extensive” aviation market knowledge and a “proven track record” in the industry.
Qantas has signed a non-binding memorandum of understanding for the transaction, the details of which will be finalised in July with the expectation of closing in mid-2027.
This will “set the airline up for its next phase of growth”, it adds.
No financial terms for the divestment have been disclosed, and Qantas says a final agreement is subject to “further negotiation” as well as regulatory approval.
“We’re confident the new ownership structure will deliver greater value to customers, benefiting from the Development Bank of Japan’s domestic and international aviation knowledge and industry expertise as well as their strong, long-standing relationships with national and regional tourism bodies,” says Qantas chief Vanessa Hudson.
Japan Airlines holds a 50% interest in Jetstar Japan while Qantas shares the remaining balance with financial services firm Tokyo Century.
Tokyo Century plans to maintain its 16.8% share in Jetstar Japan.
Jetstar Japan chief Masakazu Tanaka says the partners have “built and amazing airline” over the course of nearly 14 years. The carrier operates a fleet of Airbus A321neo and A320 jets.
“As we look to the next chapter in Jetstar Japan’s history, I am pleased to work with the new ownership group to lead our [low-cost carrier] into the future,” adds Tanaka.
As part of the transition the airline will undergo a “brand refresh”, shifting from ‘Jetstar’ to a new identity which will further establish the company as a Japanese budget carrier.
The airline will continue to develop independent operations and expand its international network from Narita.
Although the shareholding structure will is set to change, there will be no change in flight schedules. Qantas adds that its services to Japan and those of its Jetstar Airways operation will be unaffected.
Japan Airlines chief Mitsuko Tottori states: “By moving to this new structure, we will respond flexibly to market changes and maximise synergies with the JAL Group to achieve sustainable growth for [Jetstar Japan] as a key [low-cost airline] at the expanding Narita airport.”
