Qantas is putting more money into its low cost carrier Jetstar in Japan as it continues to try expand its business in Asia.
The Australian company injected $60 million into Jetstar Japan to support future fleet and infrastructure growth, enabling the carrier to capitalise on potential in the low cost carrier market in the world’s third largest economy.
The Nihon Keizai, Japan’s big financial daily newspaper, this week reported Jetstar Japan was struggling to raise passenger loads but that the airline planned profitability by the third year in 2015.
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 Yen in the form of non-voting shares will be equally shared by Qantas and Japan Airlines. Mitsubishi and Century Tokyo Leasing aren’t participating.
The investment will increase Qantas and Japan Airlines’ economic interest to 45.7 per cent each from 41.7 per cent .
Jetstar Japan started in July 2012 and is now operating 18 aircraft to nine domestic destinations. The airline expects to grow its fleet to 24 aircraft, with funding for each aircraft already secured.
Earlier this year Qantas reduced its maximum planned equity investment in Jetstar Hong Kong from to $US66 million $US99 million, following the introduction of a third shareholder.