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.
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.
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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