Century Tokyo Leasing managed to secure a stake in Jetstar from a swathe of contenders representing sectors such as transportation, travel, retail, financial services, private equity and venture capital. There was also interest from high-net-worth individuals, in what became a rush for a stake. It was the first time the airline had publicly marketed a stake in Jetstar and the overwhelming response reflected the view that this airline could be the airline to watch.
The deal, brokered by Macquarie, will see Japan Airlines and Jetstar each with a third of the company, while Century Tokyo Leasing and Mitsubishi split the other third. The airline had originally been expected to involve four investors, but Mitsubishi took a bigger stake after one of the partners, reportedly Toyota, backed out.
The new shareholding comes as Jetstar is celebrating its fifth anniversary in Japan and is ramping up to launch the new domestic operation ahead of schedule, on July 3. It has carried more than two million passengers to and from Japan since launching services amid predictions that Japanese consumers would not accept low-cost carriers. Jetstar Japan is targeting $1 billion revenue within two years and has 24 aircraft committed to the venture, with $150 million in start-up capital.
Rush for Jetstar Japan
