JAL considers plan to support low-cost carriers

TOKYO — Japan Airlines (JAL) is considering a plan to offer additional investment or financial support to two budget carriers hard hit by the pandemic.

Analysts say it is part of a strategy to ensure low-cost operators survive the tough times. Jetstar Japan and Spring Airlines Japan are the potential beneficiaries. Jetstar Japan operates 16 domestic flight routes.

JAL owns a significant stake in the company, along with Australia's Qantas Group.

Spring Airlines Japan is a subsidiary of a Chinese budget carrier. It connects Narita Airport with Chinese cities, including Nanjing and Tianjin.

Sources say JAL may offer funds worth tens of millions of dollars to each of the two carriers.