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.

 

[LionKing]

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.

I agree. Why not simply partner with overseas which would have been more profitable?

The biggest concern I have is from 2027, Qantas Frequent Flyers must suffer 4 domestic flights in Australia or 4 Qantas international flights in order to get status, irrespective of how many status credits you earn from travel whilst overseas.

 

[Saab34]

Who remembers this? Different CEOs certainly have different strategies. Joyce was definitely pro Asia back in the day.

https://www.executivetraveller.com/qantas-to-ground-asian-based-red-q-airline-before-it-launches

 

[SYD]

The biggest concern I have is from 2027, Qantas Frequent Flyers must suffer 4 domestic flights in Australia or 4 Qantas international flights in order to get status, irrespective of how many status credits you earn from travel whilst overseas.

I suspect most of us will survive and not be tempted over to a J* flight…. .

Meanwhile, will we see more JL codeshare flights? At least on Japan domestic routes? Like we saw with MH after 3K?

 

[moa999]

Stick to your knitting back home comes to mind.

Meanwhile Air Asia, after its recent recapitalisation, is planning to open in Bahrain.

Not surprised about this.. I think a combination of branding with Zipair is most likely . Maybe they might keep a Star on the tail, the hastily rebranded Zipair minus the Z is a bit boring

Biggest disappointment is losing all the cool Japanese merch including Jetta.

 

[Mattg]

The biggest concern I have is from 2027, Qantas Frequent Flyers must suffer 4 domestic flights in Australia or 4 Qantas international flights in order to get status, irrespective of how many status credits you earn from travel whilst overseas.

Jetstar domestic flights in New Zealand would still count, would they not?

Agree that it’s a bit annoying for a small subset of QFF members based in Asia (or further afield) who used 3K/GK to get their annual sectors.

 

[elanshin]

Jetstar domestic flights in New Zealand would still count, would they not?

Agree that it’s a bit annoying for a small subset of QFF members based in Asia (or further afield) who used 3K/GK to get their annual sectors.

I feel as most people here to treat NZ as Australia's 7th state when it comes to flying. If you're in NZ... You night as well have easy access to QF flights.

Also isn't Jetstar NZ basically Jetstar Au. I believe they use the same AOC just a NZ based crew.

 

[Saab34]

I understand they still need to report its NZ business to the regulator, it was a $6.4m profit after tax looking at the last report.

As to what makes up that figure, and what doesn’t, is the unknown. Do I think that figure is an accurate (and real) assessment of the health of that business, probably not. NZ has always been a marginal business impacted by high costs, the local government hiking and introducing new taxes doesn’t help, plus some NZ airports recently hiking charges to fund new infrastructure.

They seem keen on squeezing Air New Zealand at the moment so I doubt they will be pulling back in that market anytime soon.

 

[LionKing]

With Jetstar withdrawing from Singapore and Japan, I would be interested to see if Qantas will discontinue Jetstar brand and replace with Qantas?
Jetstar has been making lots of premium passengers in misery, for example, we are not able to earn dobule status credits from cities other than Melbourne and Sydney to Bali, forced to fly on unfavorable timeslots and suffer inferior service and often get punched by drunk passengers.
If Jetstar folds, and all their assets are recycled into Qantas Mainline with more Business Class, we will be able to enjoy DSC flights, better service and potentially better frequency and safer inflight experience.
I hope Jetstar will fold and we can enjoy Business Class service on A321LR fleet to Japan and Asia soon.

 

[jase05]

With Jetstar withdrawing from Singapore and Japan, I would be interested to see if Qantas will discontinue Jetstar brand and replace with Qantas?
Jetstar has been making lots of premium passengers in misery, for example, we are not able to earn dobule status credits from cities other than Melbourne and Sydney to Bali, forced to fly on unfavorable timeslots and suffer inferior service and often get punched by drunk passengers.
If Jetstar folds, and all their assets are recycled into Qantas Mainline with more Business Class, we will be able to enjoy DSC flights, better service and potentially better frequency and safer inflight experience.
I hope Jetstar will fold and we can enjoy Business Class service on A321LR fleet to Japan and Asia soon.

QF aren’t folding JQ anytime soon.
If you are like me and refuse to fly JQ there is still plenty of good options to get to Asia.
Not sure why people get so wedded to the QF group, plenty of others out there

 

[markis10]

Someone forgot to tell operations they may want to put a pause on recruitment

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[elanshin]

With Jetstar withdrawing from Singapore and Japan, I would be interested to see if Qantas will discontinue Jetstar brand and replace with Qantas?
Jetstar has been making lots of premium passengers in misery, for example, we are not able to earn dobule status credits from cities other than Melbourne and Sydney to Bali, forced to fly on unfavorable timeslots and suffer inferior service and often get punched by drunk passengers.
If Jetstar folds, and all their assets are recycled into Qantas Mainline with more Business Class, we will be able to enjoy DSC flights, better service and potentially better frequency and safer inflight experience.
I hope Jetstar will fold and we can enjoy Business Class service on A321LR fleet to Japan and Asia soon.

No Jetstar isn't going away. If anything there's probably going to be more investment in the main Jetstar Ops.

Whilst many on AFF may scoff at JQ or choose not to fly them for various reasons they serve a very important role. A significant amount of my early flying in uni days were all on Jetstar. $400 return fares to Japan, $40 one way syd - Mel. For those who are very budget conscious, it provides a mean for A to B.

I watched from my Villa in Bali over the last few nights with hordes of Jetstar flights dropping people off to and from Bali.

It serves a very important segment of the market. And honestly for what it is, it delivers a reasonable product. There are far worse LCC seats and service out there. Never again 3-3-3 in a330 if I can avoid it (Air Asia, Batik, Cebu, Phillipine Airlines....)

 

[justinbrett]

With Jetstar withdrawing from Singapore and Japan, I would be interested to see if Qantas will discontinue Jetstar brand and replace with Qantas?
Jetstar has been making lots of premium passengers in misery, for example, we are not able to earn dobule status credits from cities other than Melbourne and Sydney to Bali, forced to fly on unfavorable timeslots and suffer inferior service and often get punched by drunk passengers.
If Jetstar folds, and all their assets are recycled into Qantas Mainline with more Business Class, we will be able to enjoy DSC flights, better service and potentially better frequency and safer inflight experience.
I hope Jetstar will fold and we can enjoy Business Class service on A321LR fleet to Japan and Asia soon.

Like it or not, Jetstar is probably the smartest thing QF invested in for the last 30 years. It’s effectively a pincer movement as VA can’t simultaneously compete in both ends of the market. It’s not going anywhere.

 

[MELso]

Like it or not, Jetstar is probably the smartest thing QF invested in for the last 30 years. It’s effectively a pincer movement as VA can’t simultaneously compete in both ends of the market. It’s not going anywhere.

Yup - the mini Jetstars (Asia, Japan, Pacific) were passion projects of Uncle Alan but the OG was a brilliant strategic defensive play on the part of Qantas to ensure that if there was to be an LCC, Qantas would be the one making money on it. It's not (solely) about confining VA to the middle ground...

 

[serfty]

I watched from my Villa in Bali over the last few nights with hordes of Jetstar flights dropping people off to and from Bali.

Mini (not so really) serfty flew with her Girlfriends to Bali yesterday. Purchased the fare on Monday for under $200 (she knows how to stick to 7kg).