23-Oct-2009 9:57 AM
JAL to reportedly receive USD6 billion in long-term financial support
Japan Airlines (JAL) and its rehabilitation Task Force are reportedly considering the following measures, as part of its restructuring efforts (Asia Pulse/Financial Times/Reuters/Japan Times/Bloomberg, 22-Oct-2009):
- Long-term aid: Will reportedly receive JPY550 billion (USD6 billion) in long-term financial support under a rescue plan expected to gain government approval this week, according to Financial Times reports. Under the Task Force’s plan, a small amount of JAL’s bank debt, approximately JPY30 billion, would reportedly be converted to equity, while another JPY220 billion would be forgiven outright. Some of the funding will also come from taxpayer funds;
- International partners: Qantas stated it has no plans to provide capital assistance to its oneworld partner, but stated that it would be open to business tie-ups or other forms of cooperation premised on JAL staying in oneworld;
- Subsidiaries: Reportedly considering selling two hotel chains, Nikko Hotels International and Hotel JAL City, according to the Japan Times.