Qantas, JAL to bring Japan bargain flights

8 years ago by in Travel

Japan Airlines Co., The Qantas Group of Australia and Mitsubishi Corp. say they will launch a budget carrier in Japan.

Jetstar Japan plans to start operations by the end of 2012 and will serve domestic routes at first. It ultimately aims to expand to short-haul international routes in Asia, the companies said in a joint statement Tuesday.

The Qantas Group, Japan Airlines and Mitsubishi will each own one-third of the new company on a voting-rights basis.

Japan Airlines has been restructuring since filing for bankruptcy protection last year. President Masaru Onishi says the partnership will enable the carrier to "broaden the spectrum of travelers as it creates new demand in this market."

The move comes as Qantas Airways says it plans to cut up to 1,000 jobs as part of a major restructure of its international business.

The flagship Australian carrier is struggling to offset losses from its international unit.

Photo by Christopher Neugebauer

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.