Qantas stumps up $60m to help Jetstar Japan fly higher
- {{x.value}}
{{ twilioFailed ? 'SMS Code Failed to Send…' : 'Enter verification code' }}
{{ completedStep1 ? 'Authentication & Security' : content.trialHeading.replace('{0}', user.FirstName) }}
{{ content.upgradeHeading.replace('{0}', user.FirstName) }}
The email address you entered is registered with InvestSMART
Please login to continue
We have sent you an email with the details of your registration.
Looks you are already a member. Please enter your password to proceed
{{ upgradeCTAText }}
Updating information
Please wait ...
Your membership to InvestSMART Group recently failed to renew.
Please make sure your payment details are up to date to continue your membership.
Having trouble renewing?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
You've recently updated your payment details.
It may take a few minutes to update your subscription details, during this time you will not be able to view locked content.
If you are still having trouble viewing content after 10 minutes, try logging out of your account and logging back in.
Still having trouble viewing content?
Please contact Member Services on support@investsmart.com.au or 1300 880 160
Please click on the ACTIVATE button to activate your Intelligent Investor 15-day free trial
Please click on the ACTIVATE button to finalise your membership
Unsuccessful registration
Registration for this event is available only to Eureka Report members. View our membership page for more information.
Registration for this event is available only to Intelligent Investor members. View our membership page for more information.
- You are already registered for this event.
- This event is already full.
- Please select a quantity for at least one ticket.
- {{ i }}
Forgotten password
Please enter your email address below to request a new password
- Verify your email address by clicking on the link we sent to {{user.Email}}
- You now have free access, we look forward to helping you on your financial journey.
Following speculation this week about the need for further funding, Qantas said it and Japan Airlines would inject ¥11 billion ($120 million) between them into Jetstar Japan. It will result in both airlines increasing their stakes from 41.7 to 45.7 per cent. Their voting rights remain unchanged.
The two smaller shareholders - Mitsubishi and Century Tokyo Leasing - will have their stakes in the budget airline drop from 8.3 to 4.3 per cent as they are not participating in the placement.
Qantas said the equity injection would support growth in Jetstar Japan's fleet and infrastructure, helping it to take advantage of the "significant potential" for budget airlines in Japan.
The latest injection takes Qantas' investments in Jetstar offshoots in Asia - including those in Vietnam and Singapore - to about $277 million, according to Macquarie Equities.
The Macquarie analysts said the funding for Jetstar Japan suggested its start-up losses were higher than the original business case for the airline had allowed. They have estimated Jetstar Japan is losing about $50 million a year.
Jetstar was one of three budget airlines that started domestic services in Japan within six months of each other last year.
Jetstar Japan has also been hit with a higher fuel bill due to the yen depreciating against the US dollar. Airlines buy jet fuel in US dollars.
The airline's plans to establish a base at Kansai International Airport near Osaka have also been delayed by months, casting doubt over its plans to expand its network as quickly as it had wanted.
Since it began flying in July last year, Jetstar Japan has become the largest budget airline in Japan, with a fleet of 18 A320s flying to nine domestic destinations.
It intends to boost its fleet to 24 planes and aims to break even within the next two years.
Call 1300 880 160
Start a chat
Schedule a call
