JAL turns low-cost carrier into subsidiary

Jul 01 (NHK) - Low-cost carrier Spring Airlines Japan has become a subsidiary of Japan Airlines.

JAL officials say they have made an additional investment in the unit of a China-based airline, upping their stake to two-thirds.

The move is part of the company's strategy to strengthen its LCC business and cash in on an expected recovery in tourism demand.

Spring Airlines Japan connects Narita Airport outside Tokyo with Nanjing, Tianjin and other major Chinese cities. JAL aims to launch more routes going to China.

The company also plans to increase its investment in Jetstar Japan to enhance its domestic coverage. JAL already has a significant stake in the low-cost carrier. Australia's Qantas Group is another major owner.

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