Qantas is said to be on the cusp of pouring tens of millions of dollars into Jetstar Japan as it seeks to secure its position in the domestic Japanese market against other newcomers.
Japanese financial newspaper Nikkei has reported Jetstar Japan will raise 11 billion yen ($117 million) next month from Qantas and Japan Airlines, which each have stakes of 33.3 per cent. Qantas has previously committed about 5 billion yen to Jetstar Japan.
Jetstar Japan's two other shareholders, Mitsubishi and Century Tokyo Leasing Corporation, are not expected to participate in the private share placement. They both have stakes of 16.7 per cent.
Since it began flying in July last year, Jetstar Japan has become the country's largest budget airline with a fleet of 17 A320 aircraft. But the cost of entering the market has weighed on the financial performance of Jetstar, which booked $50 million in losses from Jetstar Japan and Jetstar Hong Kong in the year to June.
Source: NewsOnJapan
