By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Japan Airlines Invests Into Low-cost Carrier Spring Airlines Japan
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Japan Airlines Invests Into Low-cost Carrier Spring Airlines Japan

Japan Airlines Invests Into Low-cost Carrier Spring Airlines Japan

Vanni Gibertini
Last updated: 10 May 2021 02:47
By Vanni Gibertini
4 Min Read
Share
Spring Airlines Japan Boeing 737-800 © Wikipedia
SHARE

Japanese flag carrier Japan Airlines (JAL) has decided to take up a controlling stake in Chinese budget carrier Spring Airlines Japan to make it into a subsidiary.

Formally headquartered at Narita Airport in Tokyo, Spring Airlines Japan was 33% owned by Chinese low-cost carrier Spring Airlines, the operator that has brought the bare-bone dirt-cheap flights model made famous by Ryanair in Europe and Spirit Airlines in America to the Chinese skies. However the financial difficulties caused by the COVID-19 pandemic forced Spring Airlines to inject 750 million yuan (£83.4 million) into the Japanese arm of the company to keep it solvent, therefore diluting the ownership of the other Japanese investor and ending up owning a 57% controlling stake.

Japan Airlines has decided to raise its ownership of the Spring Airlines Japan from 5% to 51% by investing into the carrier approximately 10 billion yen (£65.8 million) out of the 180 billion yen (£1.18 billion) raised through a public stock offering in November 2020 as a measure to survive the crisis brought by the pandemic.

“We are very much looking to the future and beyond the coronavirus pandemic and we believe this partnership with Spring Airlines will work well,” a Japan Airlines official said to the South China Morning Post. “This will give us greater access to parts of the Chinese market that previously we have not been able to reach. We are looking three or four years into the future and we are anticipating that the industry should be back to 2019 levels by 2025”.

The carrier currently flies a fleet of six Boeing 737-800 aircraft in a two-class 189-seat configuration and serves eight destinations in Japan and in China from its Tokyo Narita base.

Frankfurt, Germany - August 16, 2019: Landing approach of Boeing 787 of Japan Airlines at Frankfurt International Airport. Japan Airlines (JAL) is the flag carrier of Japan, founded in 1951 and headquartered in Shinagawa, Japan.
Landing approach of Boeing 787 of Japan Airlines

China is by far the largest market for Japanese tourism with almost one in three tourists arriving in the “Land of the Rising Sun” coming from China in 2019. With this acquisition Japan Airlines is trying to position itself to take advantage of the travel rebound that is expected to arrive after the coronavirus-induced crisis ahead of its main competitor All Nippon Airways (ANA), which is planning to launch a new low-cost subsidiary by March 2023 operating between Japan, Southeast Asia and Oceania.

According to Japanese government data reported by Japan Today, in 2019 low-cost airlines accounted for approximately 10% of the Japanese domestic market, but for 25% of the international market. JAL and ANA are keen to take advantage of this trend which may however have been hampered by the crisis. ANA already has a low-cost subsidiary called Peach flying 34 Airbus A320 and A321 aircraft to 20 airports in Japan and the rest of Southeast Asia, while JAL has always maintained its distance from the low-cost carriers competitive scene.

You Might Also Like

KLM will Offer Flights to 95% of its Normal European Destinations in August
Embraer to attend Airshow China 2024
Qantas and Jetstar Add Thousands of Seats to Melbourne for Australian Football Fans
ITA Airways and Helbiz sign a new partnership
China-US Trade War Hits Travel Sector
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Vanni Gibertini
ByVanni Gibertini
Assistant Editor - Vanni fell in love with commercial aviation during his undergraduate studies in Statistics at the University of Bologna, when he prepared his thesis on the effects of deregulation on the U.S. and European aviation markets. Then he pursued his passion further by obtaining a Master’s Degree in Air Transport Management at Cranfield University in the U.K. followed by holding several management positions at various start-up carriers in Europe (Jet2, SkyEurope, Silverjet). After moving to Canada, he was Business Development Manager for IATA for nine years before turning to his other passion: sports writing.
Previous Article Ryanair Expands In Sweden With A New Base At Stockholm Arlanda
Next Article UK to Reopen Foreign Holidays to 12 Countries and Territories from 17 May
Subscribe
Login
Notify of
guest

guest

0 Comments
Oldest
Newest Upvoted
Inline Feedbacks
View all comments

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

A red car driving on a road with the Hollywood sign in the background
Hotels by the Hour in LA : redefining luxury and lifestyle in the heart of the city
Travel Travel Radar
Avelo aircraft N808VL at RDU airport
Avelo Airlines Launches New Membership Programme
Airlines Aviation Points & Loyalty
OX1 Plant © OXCCU
OXCCU Raises £20.75 million to develop Sustainable Aviation Fuel from Waste Carbon
Airline Economics Aviation Manufacturing Technology
A320neo-and-A321neo-in-flight-together
Airbus A320 Overtakes Boeing 737 as Most Popular Aircraft with Record Deliveries
Aircraft Aviation Manufacturing
British AIrways Boeing 787 Dreamliner in flight
British Airways to Boost Connectivity between India and the UK
Airline Economics Airlines Aviation Route Development
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up