Qantas Group, Japan Airlines and Mitsubishi to form Jetstar Japan

The Qantas Group, Japan Airlines Co., Ltd (JAL) and Mitsubishi Corporation announced today the launch of Jetstar Japan – a new domestic airline that will bring more low airfares to customers in Japan.

The Qantas Group, JAL and Mitsubishi Corporation will each hold 1/3 share in the new company (voting-rights-basis).

Jetstar Japan will commence domestic operations by the end of 2012 and expects to fly from Tokyo (Narita) and Osaka (Kansai International), with other destinations under consideration including Sapporo, Fukuoka, and Okinawa. Jetstar Japan also plans to ultimately offer short haul international services to key Asian cities making travel more accessible and appealing to millions more people.

The airline will launch with an initial fleet of three new Airbus A320 aircraft, configured for 180 customers in a single class, growing to 24 aircraft within its first few years. Total capitalization commitment for the new airline is up to ¥12 billion.

Qantas Chief Executive Officer, Mr. Alan Joyce, said the establishment of Jetstar Japan was an historic and important step for the Qantas Group.

“The Qantas Group has a long history of serving the Japanese air travel market, with Qantas and Jetstar operating regular services between Australia and Japan,” he said.

“Qantas and JAL have a long-standing relationship, as codeshare partners and fellow oneworld alliance members. We are also delighted to be joining with Mitsubishi Corporation- one of Japan’s great global brands – to launch Jetstar Japan, building on the successful expansion of the Jetstar brand across Asia.”

“The Qantas Group has a wealth of experience in establishing low cost carriers and we’re looking forward to working with our two partners on this new venture which will offer low fares to the Japanese travelling public. ”

Jetstar Japan will be officially launched in Tokyo today by the President of Japan Airlines, Mr. Masaru Onishi, Executive Vice President & Group CEO, Industrial Finance, Logistics & Development Group Mitsubishi Corporation, Mr. Hideshi Takeuchi, and Jetstar Group Chief Executive Officer, Mr. Bruce Buchanan.

JAL President Mr. Onishi said the partnership with Jetstar is a two-airline strategy that will allow the Japanese carrier to competitively serve a larger part of the Japanese market.

” We are confident that Jetstar Japan will broaden the spectrum of travellers as it creates new demand in this market,”said Mr. Onishi.

“It will encourage even more movement of people within the country and also increase the number of visitors from Asia to Japan. We anticipate this to stimulate consumer spending and play a role in revitalizing the Japanese economy.”

Mr. Takeuchi said: “Jetstar’s entrance to Japan, as a proven successful low cost airline operator, will revitalize our domestic air transportation market. That is the reason for our participation, and we would like to support Jetstar Japan’s success in Japan as well as eastern Asia with our variety of services such as aircraft leasing.”

Jetstar was the first low fares airline to enter Japan in 2007, and has already carried more than two million customers between Australia and Japan.

Jetstar’s low fare model enables people to fly more often and encourages many people to fly for the first time. This new airline will help to stimulate the local tourism industry and broader economy.

The new venture confirms Jetstar’s status as the Asia Pacific’s largest low cost carrier by revenue as well as its fastest growing, having carried almost 20 million people in a single year just seven years after launching.

Strengthening its commitment to encouraging new travel demand, Jetstar Japan fares will be covered by its Price Beat Guarantee to ensure it is always the most competitive in the market place.

[New Company Outline]

Company Name
: Jetstar Japan Co., Ltd (plan)

Address
: TBD

Capital
: 1/3 each for JAL, Qantas, Mitsubishi Corporation (Voting rights base)
(Total investment base: Qantas 42%, JAL 42%, Mitsubishi Corporation 16%)

*Opportunities exist to further broaden the Japanese shareholder base to gain access to additional business opportunities in the Japanese market.

Base
: TBD

Paid-in-capital
: Initial capital JPY 4.8 Billion increasing to up to JPY 12 Billion post commencement of operations

Fiscal year ending
: June

Number of employee
: 150 people in the first year (increase to 800 within a few years)