Jetstar Airways, a subsidiary of Qantas, has announced that it will form a new low-coast airline in association with Japan Airlines Corp (JAL) and Mitsubishi Corp.
The 3 billion yen ($39 million) joint venture will use the Australian firm’s branding as well as its operation, reservation and sales systems, and will begin domestic and international flights out of Narita airport by December 2012.
Mitsubishi is expected to reduce its 33.4 percent interest in the company by next summer, when new shareholders are brought in. It is looking to make profits by handling the leasing of Airbus SAS aircrafts to the new carrier, the Nikkei daily business paper has reported.
Jetstar recorded highest sales among budget air carriers in the Asia-Pacific region last year, the paper added.