Qantas, Japan Airlines up stakes in Jetstar Japan

Australian flag carrier Qantas and Japan Airlines on Thursday boosted their stakes in Jetstar Japan by injecting a combined Aus$120 million (US$113.6 million) into the budget carrier.

Since it began flying in July last year, Jetstar Japan has become the country's largest budget airline and the money will help it expand further.

"The equity injection will support Jetstar Japan's future fleet and infrastructure growth, enabling the carrier to capitalise on the significant potential of the low-cost carrier market in the world's third largest economy," Qantas said in a statement to the Australian stock exchange.

The combined equity injection, in the form of non-voting shares, will see Qantas' and Japan Airlines' stakes in the carrier increase from 41.7 percent each to 45.7 percent.

Mitsubishi Corporation and Century Tokyo Leasing Corporation's holdings decrease from 8.3 percent each to 4.3 percent.

Jetstar Japan started operations in July last year and now operates a fleet of 18 aircraft to nine domestic destinations. It expects to grow the fleet to 24 planes.

SOURCE