Qantas and Japan Airlines give Jetstar Japan a funding boost
* Funding injection comes ahead of international launch
* Qantas and Japan Airways' interest rises to 47.1 percent each
* Jetstar Japan fundamentals on track or ahead of expectations (Updates with detail on Jetstar Japan performance, expansion plans, Qantas share price)
SYDNEY, Nov 28 (Reuters) - Qantas Airways Ltd and Japan Airlines Co Ltd are injecting A$114 million ($97 million) into Jetstar Japan to bolster its growth as the low-cost carrier prepares to start international flights next year.
Qantas said a number of fundamentals for Jetstar Japan "are tracking at or ahead of expectations" as it announced the funding boost on Friday.
"Year-to-date yields are up 9 percent compared to the previous year and year-on-year revenue growth per passenger remains strong after increasing 15 percent in full-year 2014," the Australian airline said.
The investment will take the form of non-voting shares over two investment tranches and will be equally shared by the two airlines.
Jetstar Japan, a joint venture between Qantas, Japan Airlines, Mitsubishi Corp and Century Tokyo Leasing Corp, began flights in the world's third-largest economy in July 2012. It now operates aircraft on 18 routes to 11 domestic destinations.
International ticket sales are expected to start before the end of this year, Qantas said, without detailing destinations.
American Airlines Group Inc last month began a codeshare agreement with the Asian airline, aiming to open up Japanese domestic destinations to its customers.
The first investment tranche of A$37 million will be made on Friday, taking each airline's economic interest to 46.7 percent from 45.7 percent.
At the completion of the transaction, for which Qantas did not provide a date, the airlines' economic interest will sit at 47.1 percent each. Mitsubishi and Century's interest will fall to 2.9 percent from 4.35 percent.
The success of Jetstar Japan contrasts with sister airline Jetstar Hong Kong, which is yet to begin operations 18 months after backers Qantas and China Eastern Airlines applied for an operating licence. Jetstar Hong Kong has sold a number of aircraft and redeployed pilots as it awaits approval from Hong Kong authorities.
Shares in Qantas, which also on Friday announced a small rise in passenger numbers for October, hit a six-month high. The stock was up 4.5 percent at A$1.88 midmorning against a broadly lower market.
(1 US dollar = 1.1732 Australian dollar) (Reporting by Jane Wardell; Editing by Stephen Coates)
