JAL to make China-focused LCC a subsidiary, eyeing tourism return

Japan Airlines plans to make Spring Airlines Japan, a low-cost carrier partly funded by China's Spring Airlines, a consolidated subsidiary by the end of June. JAL will make an additional investment of several billion yen to acquire a majority stake in Spring Airlines Japan. It will strengthen ties with the LCC, which has a strong customer network in China, in anticipation of a recovery in demand for tourism and visits to acquaintances after the coronavirus pandemic. Spring Airlines Japan, which operates out of the city of Narita, east of Tokyo, was established in 2012 with investment from China's Spring Airlines and other companies. JAL currently holds a small stake in it. Based out of Narita International Airport, Spring Airlines Japan operates flights to three domestic airports: New Chitose Airport in Hokkaido, Hiroshima Airport and Saga Airport. It also operates flights to Chinese cities including Tianjin and Harbin. Its strength lies in the large customer base of Shanghai Spring International Travel Services, the parent company of Spring Airlines.<br/>