JAL and Jetstar would each have a 30% stake, with the rest held by other Japanese investors. This would comply with Japanese foreign ownership restrictions, while allowing JQ/JL to maintain overall control together (60%), with equal shares of the company.
The carrier would initially enter the Japanese domestic market and later expand to international routes.
There seems a lot of potential for low cost carriers to develop in the Japanese market, which has high fares and little LCC activity so far. Also, a JQ-like operation would be more suitable for international beach markets like Guam, Saipan, Denpasar etc., where JAL has trouble making money itself. Jetstar is probably the most successful example of a legacy carrier setting up an LCC, and they have plenty of experience, including with foreign joint ventures (Jetstar Asia and Jetstar Pacific).
The original report they cited in Nikkei is subscription only.
LDVAviation From United States of America, joined Dec 2008, 1186 posts, RR: 5
Reply 2, posted (3 years 10 months 1 day 18 hours ago) and read 2549 times:
Quoting DFWEagle (Thread starter): JAL and Jetstar would each have a 30% stake, with the rest held by other Japanese investors. This would comply with Japanese foreign ownership restrictions, while allowing JQ/JL to maintain overall control together (60%), with equal shares of the company.
Great move by JAL/QF.
AirAsia had been eyeing the Japanese market. Now, JAL/QF will get a jump on them and everyone else. (How will ANA respond?)
I think JetStar codeshares with AirAsia on some routes. Could there be a larger cooperation agreement in the works, wherein JetStar (Japan) operates as the AirAsia affiliate in Japan?
allrite From Australia, joined Aug 2007, 2334 posts, RR: 5
Reply 5, posted (3 years 10 months 1 day 15 hours ago) and read 2319 times:
I've been looking forward to this. Hopefully they will expand to server international destinations from Japan, giving Jetstar some onward services in North Asia.
Quoting LDVAviation (Reply 2): I think JetStar codeshares with AirAsia on some routes. Could there be a larger cooperation agreement in the works, wherein JetStar (Japan) operates as the AirAsia affiliate in Japan?
Jetstar and AirAsia were/are going to be involved in some kind of aircraft purchasing deal (better bargaining power through size) but not codeshare or operations. They are competitors.
truemanQLD From Australia, joined Feb 2007, 1665 posts, RR: 0
Reply 6, posted (3 years 10 months 1 day 14 hours ago) and read 2268 times:
Wow, I didnt expect this (though I dont know why, it makes sense). Great thinking by QF/JQ and JL! Jetstar has been a very successful brand so far and there is no reason why this couldnt work out! I am assuming they will be operating A320's initially. Also, what about 787's? Will they get these from QF or from JL? Or a new order? hmmm
koruman From , joined Dec 1969, posts, RR:
Reply 11, posted (3 years 10 months 12 hours ago) and read 1497 times:
If Qantas thinks that the way forward is an LCC for marginal routes in a country whose economy is utterly stagnant.....
Clearly the Jetstar lunatics have taken over the Qantas asylum!
Jetstar really is the spoilt child, whose expenses are absorbed by Daddy. But Qantas actually needs a plan, because its international full-service carrier only really caters for Sydney residents, when Melbourne and southeast Queenslamd have far stronger economies and outbound markets which are 85% and 50% the size of Sydney's respectively.
The answer is not to grow Jetstar. Especially in a moribund market like Japan. The answer is to fix Qantas.
IndianicWorld From Australia, joined Jun 2001, 3124 posts, RR: 0
Reply 12, posted (3 years 10 months 8 hours ago) and read 1420 times:
^^ I don't think this is the major plank in their International review.
It may take pressure off the need to place the ordered JQ aircraft into the Australian market. Given TTs issues though, more room might open up for those to be placed into domestic use though which would have struggled otherwise.
TruemanQLD From Australia, joined Feb 2007, 1665 posts, RR: 0
Reply 13, posted (3 years 10 months 7 hours ago) and read 1377 times:
Quoting koruman (Reply 11): Jetstar really is the spoilt child, whose expenses are absorbed by Daddy
You continue to say this, but with no evidence! Alan Joyce has said Jetstar is making them a profit and I know he is 'the devil' but why would they continue to grow Jetstar if it wasnt making money? They arent stupid!
Quoting koruman (Reply 11): The answer is not to grow Jetstar. Especially in a moribund market like Japan.
Japan has a population of over 120 million and LCC havent 'boomed' there as they have in most of the first world. It is a huge opportunity for them, however I agree it wont be the new 'strategy' they are announcing.