JAL to enter LCC market through JV with Jetstar in 2012
Japan Airlines Corp (JAL) reportedly plans to enter the LCC market through a JV with Qantas’ Jetstar subsidiary with plans to launch domestic services in 2012 (The Nikkei/Reuters, 01-Jul-2011). The venture will reportedly be capitalised at between JPY10 billion and JPY20 billion (USD124 million and USD248 million), with JAL and Jetstar each holding a 30% stake. A decision on which company will have management control will be taken later, according to the reports. Mitsubishi Corp and Toyota Tsusho Corp have reportedly been invited to invest in the deal, which JAL and Jetstar aim to finalise next month.