While uncertainty remains over when or if travel demand will make a full-fledged recovery from the coronavirus pandemic, Japan s two major airlines are positioning themselves to take advantage of any upturn with a punt on low-cost services.
TOKYO: While uncertainty remains over when or if travel demand will make a full-fledged recovery from the coronavirus pandemic, Japan's two major airlines are positioning themselves to take advantage of any upturn with a punt on low-cost services.
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.