Japan Airlines Corp, Jetstar Airways and Mitsubishi Corp have reportedly agreed to establish a LCC JV with plans to commence domestic and international service from its proposed based at Tokyo Narita International Airport by Dec-2012 (The Nikkei, 12-Aug-2011). The JV, reportedly tentatively named Jetstar Japan, will reportedly target the Japanese leisure travel market. Its domestic routes will reportedly cover Sapporo, Fukuoka and Naha, with an international network reportedly likely to cover destinations in South Korea, China and Guam. The JV will reportedly be capitalised at around JPY3 billion (USD39 million). Mitsubishi will contribute 33.4% of the amount, with JAL and Jetstar contributing 33.3% each. Through a capital increase by next summer, new shareholders are expected to be brought in. At this, Mitsubishi's ownership interest will be reduce, although JAL and Jetstar will reportedly maintain their 33.3% holding to be the two largest investors in the venture. Mitsubishi is looking to make profits by handling the leasing of Airbus aircraft used by the new carrier.
12-Aug-2011 11:19 AM