Fri, Jan 01, 2010
International Routes Would Be Taken Over By ANA
The Japanese government is considering a massive restructuring
of Japan Air Lines (JAL) that would strip the carrier of its
international operations in hopes that it could survive as a
domestic carrier. The international routes would be absorbed by
rival All Nippon Airways (ANA).
The international news service AFP cites a report in the
Japanese newspaper the Mainichi Shimbun that indicate the a program
to restructure JAL's financial situation was a topic for discussion
during a meeting Wednesday of high Japanese government officials,
including Transport Minister Seiji Maehara. The Transportation
Ministry reportedly is adamantly opposed to the scheme.
An unnamed JAL executive told the paper that the airline would
be "a good company" if it concentrated on domestic routes.
Maehara also met last weekend with vice Prime Minister Naoto
Kan and other officials, producing a agreement to expand loans from
the state-run Development Bank of Japan beyond the original $1.08
billion. JAL continues to be courted by both American Airlines and
Delta for codesharing arrangements in the Japanese market. Both
have offered significant financial assistance to the struggling
AFP reports that JAL had lost over $1.5 billion through
September of last year, and plans significant job cuts and other
cash-saving measures in an effort to get back in the black.
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