24-Sep-2009 10:41 AM

JAL options; American confirms talks re “possible capital or financing arrangements"

Japan Airlines (JAL) is expected to meet with Transport Minister, Seiji Maehara, today, to discuss options available for the struggling carrier (Wall Street Journal, 24-Sep-2009). Options being considering include separating JAL’s profitable and unprofitable operations, separating its freight operations and continuing to reorganise its non-flying operations, which currently accounts for almost 30% of JAL’s revenues.

Separately, Mr Maehara has stated he plans to “go back to the drawing board” on the current approach to the carrier’s rescue plan (Asahi Shimbun, 22-Sep-2009). Mr Maehara has, however, ruled out the option of allowing the airline to become bankrupt, saying such a scenario "must never happen."  

American Airlines confirmed it is in talks with JAL regarding options ranging from a joint business relationship to “possible capital or financing arrangements,” according to a US Regulatory Filing (Bloomberg, 23-Sep-2009). Delta Air Lines is also in discussions with the Tokyo-based airline. Both airlines are currently engaging in cash-boosting/debt refinancing measures.

Want More News Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More