Qantas Exits Jetstar Japan Stake in $66.8 Million Deal
Qantas Airways has agreed to exit its stake in Jetstar Japan, paving the way for the budget carrier to come under Japanese ownership and rebrand. The deal will see Jetstar Japan buy back Qantas' 33.32% stake in the company for 8.2 billion yen (approximately $66.8 million). This move is expected to generate an estimated gain of A$115 million (S$103.6 million) for Qantas in items outside underlying earnings, predominantly in 2027.
Jetstar Japan was established over a decade ago by Qantas, Japan Airlines, and Mitsubishi. It began operating as a low-cost carrier in late 2012 from Narita Airport near Tokyo. As part of the deal, Japan Airlines and Tokyo Century will retain their stakes in Jetstar Japan, while the Development Bank of Japan will join as a new shareholder.
The rebranding of Jetstar Japan is expected to take place after Qantas' divestment, with the company seeking to strengthen its position in Japan's low-cost carrier market. Qantas said that this move would allow it to redirect capital towards its and Jetstar's operations in Australia and across their international networks.