Jetstar Japan to first use A321neo(LR) on domestic routes

Japan Airlines looks to raise $1.6bn in fresh share issuance

JAL - Japan Airlines (JL, Tokyo Haneda) has confirmed it will indeed pursue a fresh capital increase as it looks to restructure its business and survive the uncertainty of the COVID-19 pandemic. The carrier, which emerged from bankruptcy in 2011, has warned of a net loss of between JPY240-270 billion yen (USD2.322-2.613 billion) for fiscal 2020 given depressed travel demand both within the Japanese market as well as abroad.

The JAL Group subsidiary said it will issue 90,869,900 new common shares of which 60,869,600 shares will be underwritten and purchased by Japanese underwriters in a Japanese Public Offering while 26,087,000 will be underwritten and purchased by international managers in an International Offering to take place in the United States. A further 3,913,000 additionally issued shares may be purchased by international managers should they choose to exercise the option. Following the capital increase, JAL’s outstanding shares will increase from 337,143,500 shares (as of November 6, 2020) to 437,143,500.

JAL expects to net proceeds of JPY167.979 billion yen (USD1.625 billion) via the issuance of which...

Jetstar Japan to suspend a quarter of routes

Japan Airlines prioritises LCC network over business travel

More positive about the prospects for domestic leisure travel than for international or business travel, JAL - Japan Airlines (JL, Tokyo Haneda) plans to create a network with its three low-cost subsidiaries to tap rebounding post-coronavirus leisure travel demand, Yuji Akasaka, the company’s president, said at a press conference on October 7.

The regional LCCs are Jetstar Japan, operated together with Qantas; Spring, a joint venture with China’s Spring Airlines; and its wholly-owned ZIPAIR Tokyo, all of which are based at Tokyo Narita. Akasaka did not say whether this would entail acquisitions to merge their operations.

“Aviation will not return to what it was before, and business travel demand could even shrink further. One of our targets is tourism,” he said, as quoted by Reuters.

Some domestic demand in Japan has returned, thanks to the government’s Go to Travel campaign, which provides subsidies of up to 50% on people’s costs for transport within Japan as well as hotels, restaurants, tourist attractions, and shopping.

“The impact of that campaign...

Jetstar Japan defers A321neo(LR)s