Japan's Enterprise Turnaround Initiative Corp (ETIC) stated it would select underwriters by 15-Jul-2011 to sell its USD4.3 billion stake in Japan Airlines, the first step in a process to return the carrier to a publicly traded company in 2012 (Reuters, 02-Jul-2011). ETIC has not disclosed when or how much of the stake it will sell, but the sale could be one of the largest share offerings in 2012. JAL spokesman Seiji Takaramoto stated ETIC “said initially it would hold its JAL stake for three years, so we are considering a possible relisting in 2012. The decision on the underwriter is ETIC’s, but we expect that it will do so after close consultation with JAL.”
Japan's Enterprise Turnaround Initiative to select underwriters for JAL share sale
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The prospect of further growth comes as incumbents cite overcapacity. What was once a profitable market now only produces returns in the peaks. All Nippon Airways, the largest airline between Japan and China, reported lower revenue on the back of "a deterioration in the supply-demand environment". Spring China has told Bloomberg that some competitors "aren't well-prepared", and will be "phased out". Overall Japanese LCC routes and capacity may be small but will be watched by Chinese airlines, ever mindful of the need to find new business models.