JAL to acquire Spring Airlines Japan as subsidiary

Japan Airlines will acquire Spring Airlines Japan to become a consolidated subsidiary, as part of a move to streamline its low-cost units and tap into future growth potential. JAL, which currently holds 5% shareholding in the joint venture with Chinese low-cost giant Spring Airlines Group, hopes to complete the acquisition by June this year. While the carrier did not elaborate on how much it was set to invest, it states that it will work with 48% shareholder Spring Airlines to complete the deal. Japanese media reports have indicated that JAL will boost its current stake into a majority stake. The carrier in late April confirmed that it would “strengthen” its investment in the low-cost unit. In its medium-term business update on 7 April, JAL says Spring Airlines Japan will be a “China-focused” operation, with the hopes of attracting inbound visitors from China, while “leveraging” Spring Airlines’ strong brand recognition in China. The investment into Spring Airlines Japan will help the airline “capture the first inbound demand in China, which is expected to recover in the future”, it adds. <br/>