Qantas signs deal with Japan Airlines to exit Jetstar Japan

[mbe1510]

Qantas and Japan Airlines (JAL) have today announced that they have signed a non-binding Memorandum of Understanding to facilitate the transition of Jetstar Japan to a new Japanese capital-led ownership structure.

Subject to reaching agreement on the transaction and regulatory approvals, the proposed transaction would see Qantas divest its minority (33.32%) shareholding in Jetstar Japan, with the agreement expected to be reached in July 2026 and the transition complete by June 2027.

There will be no change to the current shareholding or governance structure of Jetstar Japan until an agreement is signed and the transaction is complete.

The transaction will set Jetstar Japan up for its next phase of growth in Japan and also allow the Qantas Group to focus its ongoing capital investment into Qantas and Jetstar’s domestic and international operations in Australia.

There are no impacts to any Qantas or Jetstar international services between Australia and Japan and no impacts to codeshare arrangements with JAL.

Qantas will update the market once an agreement has been reached.

https://www.qantasnewsroom.com.au/media-releases/qantas-and-japan-airlines-announce-intention-for-strategic-transition-of-jetstar-japan-to-a-japanese-capital-led-ownership-structure

 

[jrfsp]

After the end of Jetstar Asia perhaps not a surprise.

I wouldn’t be surprised if the jetstar brand is replaced by zipair or another of JALs brands.

 

[Harrison_133]

After the end of Jetstar Asia perhaps not a surprise.

I wouldn’t be surprised if the jetstar brand is replaced by zipair or another of JALs brands.

Will be rebranded. From the joint press release, it's stated:

"Brand Refresh: Following any QAG divestment, JJP will refresh its brand from "Jetstar" to a new brand, further establishing itself as a leading Japanese LCC under this new brand and identity."

June 2027 is being targeted for the brand transition.

https://www.qantasnewsroom.com.au/media-releases/announcement-of-intent-for-strategic-shareholder-change-in-jetstar-japan

 

[Saab34]

I mentioned this a while back on the 3K closure, you can read between the lines in yearly market updates that it’s not profitable and relies on currency gains to simply claim its profitable. Looking at QF Financial commitments in the medium term, it’s clear they have no room to allocate capital to this business that isn’t giving anything back.

It’s the end of Alan’s pan Asian dream. SQ failed at the same exercise with Tiger Indo, Phil, Australia, Qantas has suffered the same fate with Vietnam, Singapore, Japan.

I’ll give it to Hudson. She has made calls on some of these business that shouldn’t have gone on for as long as they did under Joyce. Whilst she ran the numbers in that era, it’s clear he would never dump his creations in Asia.

Stick to your knitting back home comes to mind.