Qantas and Japan Airlines have signed a memorandum of understanding (MoU) to transition Jetstar Japan to a new Japanese capital-led ownership structure. This would see Qantas divest its entire minority stake in the low-cost carrier.
Qantas plans to sell its 33.32% stake in the Narita-based airline, with a final transaction expected to be agreed in July 2026 and completed by June 2027.
Under the deal, the Development Bank of Japan (DBJ) would become a new shareholder alongside JAL and Tokyo Century Corporation, which intends to retain its existing stake.
Tokyo Century currently holds 16.68% and Japan Airlines holds 50%.
“DBJ has extensive aviation market knowledge and a proven track record in the aviation industry,” a joint statement from the involved parties read.
Following Qantas' divestment, Jetstar Japan will be rebranded, with this new branding expected to be announced in October.
“We’re confident the new ownership structure will deliver greater value to customers, benefitting from the Development Bank of Japan’s domestic and international aviation knowledge and industry expertise as well as their strong, long-standing relationships with national and regional tourism bodies,” said Qantas Group CEO Vanessa Hudson.
“We also extend our deepest gratitude to Qantas for their 14-year partnership in establishing and developing the LCC market in Japan," said Japan Airlines group CEO & president Mitsuko Tottori.
”By moving to this new structure, we will respond flexibly to market changes and maximize synergies with the JAL Group to achieve sustainable growth for JJP as a key LCC at the expanding Narita Airport."
Jetstar Japan staff will be retained after the deal is closed, with the airline to continue operating as an independent low-cost carrier at Narita Airport.
The airline aims to “proactively expand its international network, centred on the future expansion of Narita Airport”.
Additionally, the airline will aim to capitalise on the growing inbound tourism and direct passengers to regional areas with ambitions of “revitalising Japan's regional economies”.
In the meantime, there will be no change in the company's shareholding or governance of Jetstar Japan until the deal is signed and complete, Qantas confirmed. Additionally, Qantas and Jetstar's international services between Australia and Japan will continue as normal, as too will their existing codeshare agreements.
“The transaction will set Jetstar Japan up for its next phase of growth in Japan and also allow the Qantas Group to focus its ongoing capital investment into Qantas and Jetstar’s domestic and international operations in Australia,” said Qantas in a statement.
Jetstar Japan launched in 2012 with domestic routes before launching international flights in 2015.