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Spring Airlines Japan to Become Subsidiary of JAL

MIAMI – In anticipation of an increase in travel between China and Japan, Spring Airlines Japan will become a subsidiary of JAL (JL).
Although JL originally had a stake of only 5% in Spring Airlines Japan, it plans to increase its stake to at least 50%.
Spring Airlines Japan is the brand subsidiary of Spring Airlines, a well known low-cost carrier in China.
The parent airline operates a large fleet of over 100 Airbus A320 family aircraft, while Spring Airlines Japan operates just six Boeing 737-800s.
JAL plans to take advantage of Spring Airlines’ brand recognition in China to attract inbound passengers to Japan. ....

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JAL to acquire Spring Airlines Japan as subsidiary

By Alfred Chua2021-05-07T08:27:00+01:00
Japan Airlines will acquire Spring Airlines Japan to become a consolidated subsidiary, as part of a move to streamline its low-cost units and tap into future growth potential.
JAL, which currently holds 5% shareholding in the joint venture with Chinese low-cost giant Spring Airlines Group, hopes to complete the acquisition by June this year.
Source: Wikimedia Commons
A Spring Airlines Japan 737-800 in March 2019
While the Oneworld carrier did not elaborate on how much it was set to invest, it states that it will work with 48% shareholder Spring Airlines to complete the deal.
Japanese media reports have indicated that JAL will boost its current stake into a majority stake. The carrier in late April confirmed that it would “strengthen” its investment in the low-cost unit. ....

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CAPA Live: China's domestic aviation recovers; but not international

Analysis
Each CAPA Live, held on the second Wednesday of each month, contains a summary of the latest key developments by region.
In the Apr-2021 report:
- Following months of rapid recovery in the second half of 2020, China s recovery experienced setbacks entering 2021.
- Chinese airlines expected to remain in the red in 1Q2021, due to the missed opportunity during the Lunar New Year, when citizens were strongly encouraged to stay put.
- Second wave of recovery under way as demand, load factor and airfares on upward trajectory.
- International market will remain largely closed off as vaccine rates and effectiveness remain below expectation. ....

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