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Bankruptcy not an option for JAL - Japan Transport Minister

18-Sep-2009 10:13 AM

Japan’s new Transport Minister, Seiji Maehara, stated bankruptcy is not an option for Japan Airlines, and emphasised that Japan needs to retain JAL and All Nippon Airways as the "two pillars" of its aviation industry (Kyodo News/Reuters/AFP, 17-Sep-2009). Mr Maehara also indicated that the government would accelerate efforts to rehabilitate JAL, stating, ‘‘the time left for us for the JAL rehabilitation is limited.’’ He also confirmed there are no plans to disband the expert panel created by the previous government to monitor the carrier’s restructuring efforts, although his Ministry would be involved in monitoring the feasibility of the improvement plan.

Japan Government: "JAL must not be allowed to fail. I hope JAL will restructure and come up with a solid turnaround plan so that banks can lend it money and it can stage a recovery on its own… I know time is limited. I will listen to various stakeholders and experts. I also need to ask JAL about the content of its restructuring measures and the feasibility of its plans," Seiji Maehara, Transport Minister. Source: Reuters, 17-Sep-2009.