JAL and NYK end cargo business reform and merger negotiations
JAL Group announced (02-Mar-2010) that it ended negotiations with Nippon Yusen Kabushiki Kaisha (NYK) on cargo business reforms involving a possible merger between Japan Airlines International (JAL), the key subsidiary of Japan Airlines and NYK subsidiary, Nippon Cargo Airlines (NCA). The commencement of negotiations involving the restructuring of the cargo businesses operated by JAL and NCA was announced in Aug-2009. Both parties have reached an "amicable conclusion" to end the negotiations as the structure of the merger could "not be organised within the scope of the agreement between JAL and NYK". JAL and NCA plans to continue their existing business relationships, such as operating codesharing flights and coordinating ground handling activities. Both companies stated they would maintain close communications in their current business partnership, and will be open to discussions about any possible cooperation in the future. [more]
JAL Group: "JAL's strong relationship with Nippon Yusen remains unchanged as we reach a common understanding to halt discussions about the merger. We intend to maintain mutually-beneficial business activities with NCA such as the current code share flights, and preserve the cooperation that we have already established. Demand for air cargo business typically fluctuates with the economy. Considering future growth in the segment, JAL will include strategies for our cargo business in the JAL Reorganization Plan," Masaru Onish, COO and President. Source: Company Statement, 02-Mar-2010.