By Greg Waldron2021-04-27T03:46:00+01:00
Japan Airlines (JAL) plans to increase its investment in low-cost carrier Spring Airlines Japan sometime in June.
The airline confirmed reports in Japanese media that it intends to “strengthen the investment” into the low-cost carrier, with further details to accompany its full-year results statement on 7 May.
Source: Wikimedia Commons
A Spring Airlines Japan 737-800 in March 2019
Quoting sources, Japanese media have reported that JAL plans to boost a 5% stake in Spring Airlines Japan to a majority stake, enabling it to better ride a recovery in Chinese tourism as the coronavirus pandemic abates.
The investment will reportedly be worth several billion Japanese yen. Founded in 2012, Spring Airlines Japan is 48% owned by China’s Spring Airlines, with the balance held by Japanese investors.
JAL to make Chinese LCC Spring Airlines Japan unit a subsidiary
Japan Airlines Co. is planning to make a unit of Chinese low-cost carrier Spring Airlines Co. a subsidiary to meet an expected recovery in tourism demand after the coronavirus pandemic subsides, sources familiar with the matter said Sunday.
JAL, which currently has about a 5 percent stake in Spring Airlines Japan Co., will invest an additional several billion yen possibly in June to increase its stake to 51 percent or more, the sources said.
The major Japanese airline is eager to cash in on the projected return of Chinese tourists to Japan following the end of the pandemic. The company is expected to release details of the investment in its midterm business plan to be released on May 7, they said.
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Japan Airlines Co. is planning to make a unit of Chinese low-cost carrier Spring Airlines Co. a subsidiary. | KYODO
Kyodo Apr 26, 2021
Japan Airlines Co. is planning to make a unit of Chinese low-cost carrier Spring Airlines Co. a subsidiary to meet an expected recovery in tourism demand after the coronavirus pandemic subsides, sources familiar with the matter said Sunday.
JAL, which currently has about a 5% stake in Spring Airlines Japan Co., will invest an additional several billion yen possibly in June to increase its stake to 51% or more, the sources said.
The financial losses expected by three of China’s smaller carriers in 2020 are dwarfed by losses expected at the “Big Three” and troubled Hainan Airlines.