Century Tokyo Leasing Corp announced (13-Mar-2012) it has acquired a 16.7% stake in Jetstar Japan from Mitsubishi Corp, reducing Mitsubishi’s shareholding in the start-up to 16.7%, with the remaining 33.3% equally split between Japan Airlines and Qantas. The share certificate delivery is scheduled for 27-Mar-2012. Century Tokyo Leasing stated the acquisition is part of the company’s medium-term management plan to expand its business portfolio, which includes aircraft leasing and credit card membership. Jetstar Japan CEO Miyuki Suzuki, as quoted by Sankei Biz, stated Century Tokyo’s diverse business interests would provide synergies allowing the start-up to provide more innovative services. The carrier is targeting USD1 billion in revenue within two years of its scheduled launch date in Jul-2012. [more - original PR - Japanese]
Century Tokyo Leasing Corp acquires stake in Jetstar Japan
You may also be interested in the following articles...
Australia's air market readjustment accelerates as AUD shifts promise changes in travel patterns
Australia’s outbound market has continued to strengthen while its inbound market has been relatively stable in recent years.
Australian residents took a record 8.4 million short-term trips overseas in the financial year ended 30-Jun-2013, according to the Australian Bureau of Statistics (ABS), up from 8 million trips in 2012 and nearly three times the number from 10 years ago when 3.3 million short-term departures were recorded.
This growth has been largely driven by Australia's strong resources fuelled economy, with a high AUD making international travel more appealing for Australians compared to a domestic holiday. The recent substantial fall in the AUD has not yet had time to make its effects felt at the consumer end, but the approximately 15% fall against the USD since Apr-2013 (and against those currencies linked to the USD) will be causing pain to airlines whose reliance on Australian outbound traffic is high.
Despite the AUD losing ground however, there appears to be little lessening of appetite for Australians to travel – at least in the short term.
All Nippon Airways and Japan Airlines respond differently to country's LCCs; is JAL faring better?
Whisper it quietly, but Japan's low-cost carriers appear to be cannibalising traffic at All Nippon Airways and Japan Airlines. ANA and JAL carried 19% fewer passengers between Osaka and Sapporo in 2012 than 2010 despite the overall market growing 20%. This goes against the story all parties tell that LCCs are only increasing, not cannibalising, volumes. The cannibalisation is confined, so far, but there are signs of concern. ANA and JAL saw reduced traffic in 2012 on overlapping LCC routes despite overall 2012 traffic being the strongest in nearly five years.
ANA and JAL are responding differently to LCCs. The nuances reflect their wider outlook – and fears. JAL is more aggressively cutting capacity on overlapping LCC routes while ANA is sometimes growing. In the medium-term, JAL expects to cut overall domestic capacity in line with the country's shrinking nature while ANA plans growth. JAL's cuts have been rewarded with higher load factors while ANA's growth has seen lower load factors, but all load factors need improvement.