Japan Airlines has an additional investment of several billion yen in each of the two LCC = low-cost carriers "Jetstar Japan" and "Spring Airlines Japan", which have a capital relationship and continue to be harshly managed. It turned out that we are making final adjustments in the direction of providing financial support.
It seems that the aim is to strengthen the domestic and overseas LCC business in anticipation of the end of the infection.
Jetstar Japan is an LCC = low-cost carrier funded by Japan Airlines and the Qantas Group of Australia, and operates 16 routes in Japan.
In addition, Spring Airlines Japan is a Japanese subsidiary of LCC in China, and operates routes connecting Narita Airport with Nanjing and Tianjin in China, but all of them continue to be severely managed due to the influence of the new coronavirus.
In response to this, it was found that Japan Airlines, which has a capital relationship with both companies, is making final adjustments in the direction of providing additional investment and financial support amounting to billions of yen.
Specifically, we are proceeding with adjustments centered on the "third-party allotment of shares" undertaken by Japan Airlines for the shares newly issued by the two companies.
Japan Airlines is expected to improve the financial bases of both companies, which have deteriorated due to the effects of the new coronavirus, and to strengthen its domestic and overseas LCC business in anticipation of the end of the infection.