Jestar’s Asia expansion plans stall

Company News

Qantas Airways Limited (ASX:QAN) budget carrier Jetstar's offshoot in Japan has been forced to keep new planes on the ground after regulators delayed a decision on whether they will allow it to set up a second base, according to media reports.
 
Reports say the regulatory hold-ups have raised questions about the risk of Qantas' investments in budget airlines in Asia.
 
Jetstar has confirmed that a small number of planes are also on the ground in Toulouse, France, awaiting their launch if Jestar Hong Kong gets the go-ahead.
 
The Qantas budget offshoot says that some of the planes in Tokyo will be used as operational spares.
 
Qantas generated a net profit of $6 million in fiscal 2013.

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