UPDATE 1-Century Tokyo Leasing to buy stake in Jetstar Japan-Nikkei

Fri, Mar 09 13:29 PM EST

* Century Tokyo to buy 16.7 pct interest in Jetstar

* Century Tokyo will be third biggest shareholder in Jetstar

March 9 (Reuters) - Century Tokyo Leasing Corp , a unit of Japanese trading house Itochu Corp, will buy a 16.7 percent stake in budget airline start-up Jetstar Japan, to expand its aircraft leasing operations, the Nikkei reported.

The company will buy the stake from top shareholder Mitsubishi Corp, which has a 33.4 percent stake in Jetstar Japan, the daily said.

The remaining shares are equally split between Japan Airlines Co and Australia's Qantas Airways Ltd , the Nikkei said.

Jetstar Japan plans to boost its asset utilization efficiency by lowering aircraft leasing costs and leasing offices and airport facilities, the daily reported.