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JAL 'rebuilding' plan to be unveiled as early as today

29-Oct-2009 10:25 AM

Japan’s Transport Minister, Seiji Maehara, is reportedly expected to unveil a 'rebuilding plan' for Japan Airlines (JAL) as early as today (The Nikkei, 29-Oct-2009). JAL also reportedly plans to seek support from The Enterprise Turnaround Initiative Corp of Japan as early as tomorrow (30-Oct-2009) (Asahi Shimbun, 28-Oct-2009). The enterprise would reportedly invest in the company and also buy up JAL's debts from its smaller creditor banks.

Japan's Deputy Prime Minister, Naoto Kan, meanwhile, stated he remains cautious about creating a special law to forcibly reduce the amount of JAL's corporate pension benefits (The Japan Times, 28-Oct-2009).

Japan Government: "Pensions must be protected in principle. There is an issue of fairness in relation to people who are in other (corporate) pension programs. It is a very difficult issue" and several other options on how to deal with the issue are under discussion,” Naoto Kan, Deputy Prime Minister. Source: The Japan Times, 28-Oct-2009.

American Airlines has reportedly proposed a deepening of ties with Japan Airlines, as it seeks to keep JAL in the oneworld alliance (Bloomberg, 28-Oct-2009). American Airlines is reportedly urging JAL to seek antitrust immunity to collaborate on schedules and pricing as soon as a US-Japan open skies aviation treaty is concluded.