27-Oct-2009 11:02 AM

JAL to restructure under new state-backed agency; Delta remains interested in JAL

The Enterprise Turnaround Initiative Corporation of Japan (ETIC), established on 16-Oct-2009, is reportedly expected to purchase part of Japan Airlines’ JPY700 billion (USD7.6 billion) loan credits held by financial institutions as at Mar-2010, or finance part of the capital reinforcement estimated at JPY300 billion (USD3.3 billion) (Yomiuri Shimbun, 27-Oct-2009). The organisation is expected to be involved in the entire reconstruction process, including reducing debts held by JAL and supervising the rehabilitation process.

Separately, BNP Paribas stated credit-default swaps written on the JAL debt may be the first to be auctioned in the country (Bloomberg, 26-Oct-2009).  

Delta Air Lines has reportedly hired Fleishman Hillard Inc, a division of Omnicom Group (which was the company that advised the recently elected Democratic Party of Japan), to lobby decision makers in Japan in an effort to secure an alliance with JAL (UBM Aviation, 26-Oct-2009).

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