JAL plans to set up a joint venture with Jetstar, the budget offshoot of Australian national carrier Qantas, for flights using Narita and other domestic airports, the Nikkei business daily said.

The venture would be capitalised at 10-20 billion yen ($124-248 million), with JAL and Jetstar each taking stakes of about 30 per cent, the daily said, adding hat it would be later decided which firm has management control. The carrier would start with domestic services with a plan to expand flights to international routes in the future, it said.

Neat idea, and this would certainly foster the business relationship with alliance partners. It seems like a great idea, as it would allow them to capitalize upon a new market. I wonder where they will get the aircraft from?