ID :
79575
Sat, 09/12/2009 - 02:15
Auther :
Shortlink :
http://m.oananews.org//node/79575
The shortlink copeid
JAL mulling tie-up with Delta, expansion with Air France-KLM
+
TOKYO, Sept. 12 Kyodo -
Struggling Japan Airlines Corp. is considering receiving capital investments
from Delta Air Lines Inc. and forming a business tie-up on international
operations with the U.S. and world's largest airline, industry sources said
Friday.
Japan's largest airline is also sounding out Air France-KLM Group, a major
European airline, on expanding its alliance in deals that could form the pillar
of JAL's restructuring program and dramatically alter the makeup of the global
airline industry.
Cash-strapped JAL is likely to raise tens of billions of yen by selling shares
to Delta, which would then become JAL's top shareholder, to bolster its weak
financial standing, the sources said.
The company will also improve the efficiency of its flight operations by
code-sharing some international routes with Delta and strengthening its
business base, they added.
It also hopes to avert an exodus of travelers by jointly operating flights with
Delta and expanding ties with Air France-KLM as JAL plans to drastically
suspend loss-making international flights to cut costs.
JAL and Air France have a code-sharing arrangement that dates back to 1960.
Delta and Air France-KLM are both part of SkyTeam, a global airline alliance,
while JAL is part of the rival Oneworld grouping that includes American
Airlines and British Airways.
''The merits of belonging to Oneworld are small,'' a senior JAL official said,
suggesting the airline may leave the grouping once it inks the deal with Delta.
Delta, based in Atlanta, Georgia, became the world's largest airline surpassing
American Airlines after it merged with Northwest Airlines last year.
In June, JAL inked a deal with two state-backed lenders and three major
Japanese commercial banks to borrow a total of 100 billion yen and plans to
receive another 100 billion yen in additional loans before the end of the year.
The Japanese airline will present an outline of its new management improvement
plan to a panel to be convened next Tuesday by the Ministry of Land,
Infrastructure, Transport and Tourism.
JAL's group net loss for the current business year through next March is
expected to widen from an initially anticipated 63 billion yen as travel demand
continues to be pounded by the economic downturn and the spread of the new
influenza.
==Kyodo
TOKYO, Sept. 12 Kyodo -
Struggling Japan Airlines Corp. is considering receiving capital investments
from Delta Air Lines Inc. and forming a business tie-up on international
operations with the U.S. and world's largest airline, industry sources said
Friday.
Japan's largest airline is also sounding out Air France-KLM Group, a major
European airline, on expanding its alliance in deals that could form the pillar
of JAL's restructuring program and dramatically alter the makeup of the global
airline industry.
Cash-strapped JAL is likely to raise tens of billions of yen by selling shares
to Delta, which would then become JAL's top shareholder, to bolster its weak
financial standing, the sources said.
The company will also improve the efficiency of its flight operations by
code-sharing some international routes with Delta and strengthening its
business base, they added.
It also hopes to avert an exodus of travelers by jointly operating flights with
Delta and expanding ties with Air France-KLM as JAL plans to drastically
suspend loss-making international flights to cut costs.
JAL and Air France have a code-sharing arrangement that dates back to 1960.
Delta and Air France-KLM are both part of SkyTeam, a global airline alliance,
while JAL is part of the rival Oneworld grouping that includes American
Airlines and British Airways.
''The merits of belonging to Oneworld are small,'' a senior JAL official said,
suggesting the airline may leave the grouping once it inks the deal with Delta.
Delta, based in Atlanta, Georgia, became the world's largest airline surpassing
American Airlines after it merged with Northwest Airlines last year.
In June, JAL inked a deal with two state-backed lenders and three major
Japanese commercial banks to borrow a total of 100 billion yen and plans to
receive another 100 billion yen in additional loans before the end of the year.
The Japanese airline will present an outline of its new management improvement
plan to a panel to be convened next Tuesday by the Ministry of Land,
Infrastructure, Transport and Tourism.
JAL's group net loss for the current business year through next March is
expected to widen from an initially anticipated 63 billion yen as travel demand
continues to be pounded by the economic downturn and the spread of the new
influenza.
==Kyodo
