Japan Airlines (JAL) now holds 50% of the voting rights stock in Jetstar Japan, after acquiring Mitsubishi Corporation’s entire 16.7% stake in the budget airline.
Japan Airlines (JAL) now holds 50% of the voting rights stock in Jetstar Japan, after acquiring Mitsubishi Corporation’s entire 16.7% stake in the budget airline.
JAL did not disclose the value and timeline of the transaction but tells Cirium at this point, it has no plans to increase its stake in Jetstar Japan any further.
“According to the company’s medium-term management plan, JAL looks to strengthen the LCC market in Japan and offer competitive fares that match the needs of price-sensitive customers, while increasing demand from our overseas customer base,” JAL tells Cirium.
“(Jetstar Japan’s) business model will continue to focus on the LCC market in Japan. An external board director from Mitsubishi Corporation will retire from the position and a representative from JAL will replace the position.”
Local media reports indicate that the transaction closed before September.
Jetstar Japan launched in 2012 with Qantas’ Jetstar Group and Japan Airlines each holding 33.3% of its voting rights stock, while Mitsubishi Corporation and Century Tokyo Leasing Corporation owned 16.7% each.
Additional capital injections by Qantas and Japan Airlines between 2014 and 2015 increased their economic interest in the joint venture to 47.1% each but did not change their voting rights.
