JAL bankruptcy is 'impossible' | Shanghai Daily

The story appears on

Page A16

September 28, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Transport

JAL bankruptcy is 'impossible'

JAPAN'S transport minister said yesterday he will not force the struggling Japan Airlines, Asia's biggest airline, into bankruptcy.

"We will not crush and liquidate (the airline)," Land, Infrastructure and Transport Minister Seiji Maehara said on a TV Asahi talk show. "It's just impossible."

A team of government-appointed corporate turnaround experts was set up on Friday to create a restructuring plan for the airline, whose own draft reconstruction plan was called by Maehara as "insufficient."

The team will make a recommendation to the transport minister by late October or early November.

Officials from the airline and the transport ministry were not available for comment yesterday.

The airline incurred its biggest-ever quarterly net loss of 99 billion yen (US$1 billion) in the three months to June. It forecast a net loss of 63 billion yen for the current fiscal year to March 2010. JAL was privatized in 1987.

JAL has sought public funds for survival. Its request for taxpayer money came months after it received 60 billion yen in loans from the government-owned Development Bank of Japan in June.

In his meeting last Thursday with the transport minister, JAL President Haruka Nishimatsu revealed that the airline is short 450 billion yen through March 2011, money that is needed for debt repayment, according to media reports.

Nishimatsu told Maehara that JAL was planning to cover part of the payment by selling off its in-flight meal catering unit and reviewing company pension plans.

JAL's original restructuring scheme also included 6,800 job cuts, or around 14 percent of its workforce.

The airline reportedly was in talks on financial tie-ups with airlines including Delta Air Lines Inc, the world's biggest airline operator, its rival American Airlines Inc and Air France-KLM, Europe's biggest airline group.

Delta is part of the SkyTeam alliance, while JAL is part of the rival OneWorld alliance.



 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend