Spring Airlines Japan flying high
Spring Airlines Japan has raised 18 billion yen in the recently completed second financing round.
Spring Airlines Japan has raised 18 billion yen in the recently completed second financing round. The carrier’s original shareholders were joined by a major Japanese real estate company and a top retail chain Bic Camera in this round of financing. Bic Camera put in one billion yen and also formed a strategic partnership with the low-cost carrier (LCC) for mutual promotion in each other’s channels.
Spring Airlines Japan is operating 26 air routes connecting 18 Chinese cities with eight Japanese cities. Its China-Japan flight volume accounts for 18% of its total volume between China and Japan. By the end of 2015, the carrier’s carrying capacity is expected to exceed 1.2 million passengers/trips.
Spring Airlines set up Spring Airlines Japan in October 2012. The Japan-based LCC, with registered capital of six billion yen, is headed by Hui Wang, the son of Spring Airlines president Zhenghua Wang. As the Japanese law for locally registered companies limits foreign investment to no more than one third of a company’s total capital, Spring Airlines holds only 33% of the joint venture, while the remaining 67% was held by a consortium of Japanese companies in IT, commercial and tourism firms as well as local investment funds. Spring Airlines invested an additional 1.8 billion yen in Spring Airlines Japan in December last year to raise its stake to 48%, while its voting rights remain at 33%.
Spring Airlines Japan will use the latest funding to expand its fleet and crew. Its current fleet with only three Boeing 737 aircraft is expected to expand to include 20 aircraft by 2022.
Spring Airlines Japan’s president Hui Wang said the carrier is searching for more partners in the supply chains of travel, dining, accommodation, shopping and entertainment in an effort to satisfy different customer demands related to the flight and travel services.(Translation by David)