The Tokyo-based airline Japan Airlines intends to increase its stake in two low-cost carriers, including Spring Airlines and Jetstar Japan. The airline reportedly intends to invest up to $ 76.4 million (10 billion yen) in the two companies.
Holding a 5% stake in Spring Airlines, Japan Airlines (JAL) is reportedly considering an opportunity to increase its stake in the Chinese low-cost carrier to 51% in June 2021. At the same time, JAL also intends to strengthen its position in another low cost airline. Jetstar Japan, in which it currently owns 50% of the shares.
The possible investment in the two airlines will reach up to $ 76.4 million (10 billion yen), local media reported. This move is intended to help JAL meet the expected growth in air passenger demand after the recovery.
To stay afloat amid the pandemic, in November 2020, Japan Airlines raised nearly $ 1.7 billion (180 billion yen) through a takeover bid. The airline suffered a loss of nearly $ 2.86 billion (300 billion yen) in the fiscal year ended March 2021, due to lower demand caused by a global resurgence COVID-19 infections.
JAL is expected to announce the details of the possible investment in the medium-term business plan in early May 2021.