ID :
99428
Tue, 01/12/2010 - 00:15
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Shortlink :
https://www.oananews.org//node/99428
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Turnaround plan eyes JAL`s switch to Delta-led alliance in April 2011
TOKYO, Jan. 11 Kyodo -
The state-backed body in charge of turning around struggling Japan Airlines
Corp. plans to include in its rehabilitation plan a tie-up between JAL and the
largest U.S. carrier Delta Air Lines Inc., with an eye to having Japan's top
carrier switch to the Delta-led global SkyTeam alliance in April 2011, sources
close to the matter said Monday.
The Enterprise Turnaround Initiative Corp. of Japan is calculating that an
alliance with Delta will be more beneficial, with a projected annual benefit of
17.2 billion yen, which is three times bigger than what an expanded alliance
with American Airlines Inc. would offer.
With American Airlines, which belongs to the same oneworld alliance as JAL
currently, the benefit per year will only be 5.4 billion yen.
ETIC is seeking JAL's business tie-up with Delta without receiving capital from
the U.S. airline, the sources said.
For the past months, Delta and American Airlines have been wooing the
cash-strapped JAL with their respective offers of financial aid.
No Japanese airline is a member of the SkyTeam alliance, which has more routes
connecting Japan and Asia compared with the oneworld alliance. Japan's other
airline carrier, All Nippon Airways Co., is a member of the Star Alliance
grouping.
As JAL prepares to file for a court-backed bankruptcy, ETIC is also highly
likely to have JAL delisted from the stock market to make the stockholders
fully accountable for JAL's financial woes.
ETIC had been trying to find a way to avoid JAL's delisting because a high
number of individual investors hold JAL shares but eventually decided on the
delisting after judging it cannot get JAL's key creditor banks to agree to a
debt waiver with JAL carrying liabilities of over 860 billion yen.
On Tuesday, transport minister Seiji Maehara is set to meet with top executives
of the banks to try to seek their understanding about a JAL bankruptcy filing
and their continued support for the airline.
Under the turnaround plan, JAL and Delta will file for antitrust immunity for
Japan-U.S. routes following a landmark ''open skies'' deal between Japan and
the United States to liberalize air transport, the sources said.
JAL aims to beef up international routes at Tokyo's Haneda airport, whose
fourth runway due to open in October will increase the number of flights and
departures there.
JAL intends to open a Haneda-Los Angeles route in fiscal 2011 and connect JAL
with routes of the SkyTeam alliance.
ETIC plans to decide on its bailout package for JAL as early as Jan. 19, at the
same time it will have the airline file for court protection under the
Corporate Rehabilitation Law.
==Kyodo
The state-backed body in charge of turning around struggling Japan Airlines
Corp. plans to include in its rehabilitation plan a tie-up between JAL and the
largest U.S. carrier Delta Air Lines Inc., with an eye to having Japan's top
carrier switch to the Delta-led global SkyTeam alliance in April 2011, sources
close to the matter said Monday.
The Enterprise Turnaround Initiative Corp. of Japan is calculating that an
alliance with Delta will be more beneficial, with a projected annual benefit of
17.2 billion yen, which is three times bigger than what an expanded alliance
with American Airlines Inc. would offer.
With American Airlines, which belongs to the same oneworld alliance as JAL
currently, the benefit per year will only be 5.4 billion yen.
ETIC is seeking JAL's business tie-up with Delta without receiving capital from
the U.S. airline, the sources said.
For the past months, Delta and American Airlines have been wooing the
cash-strapped JAL with their respective offers of financial aid.
No Japanese airline is a member of the SkyTeam alliance, which has more routes
connecting Japan and Asia compared with the oneworld alliance. Japan's other
airline carrier, All Nippon Airways Co., is a member of the Star Alliance
grouping.
As JAL prepares to file for a court-backed bankruptcy, ETIC is also highly
likely to have JAL delisted from the stock market to make the stockholders
fully accountable for JAL's financial woes.
ETIC had been trying to find a way to avoid JAL's delisting because a high
number of individual investors hold JAL shares but eventually decided on the
delisting after judging it cannot get JAL's key creditor banks to agree to a
debt waiver with JAL carrying liabilities of over 860 billion yen.
On Tuesday, transport minister Seiji Maehara is set to meet with top executives
of the banks to try to seek their understanding about a JAL bankruptcy filing
and their continued support for the airline.
Under the turnaround plan, JAL and Delta will file for antitrust immunity for
Japan-U.S. routes following a landmark ''open skies'' deal between Japan and
the United States to liberalize air transport, the sources said.
JAL aims to beef up international routes at Tokyo's Haneda airport, whose
fourth runway due to open in October will increase the number of flights and
departures there.
JAL intends to open a Haneda-Los Angeles route in fiscal 2011 and connect JAL
with routes of the SkyTeam alliance.
ETIC plans to decide on its bailout package for JAL as early as Jan. 19, at the
same time it will have the airline file for court protection under the
Corporate Rehabilitation Law.
==Kyodo
