Japan Airlines was further downgraded by Standard and Poor's from already speculative grades, following a previous downgrade less than three weeks ago (AFP/Kyodo, 04-Nov-2009). S&P lowered the long-term corporate credit ratings on JAL and Japan Airlines International by two levels from ‘B-minus’ to ‘CCC’ and maintained its credit watch with a negative outlook. The downgrade "is based on the recognition it is becoming more likely that JAL will opt for a debt waiver by its creditors or for a debt equity swap in its restructuring plan" under the supervision of a quasi-public body.
Japan Airlines further downgraded by Standard and Poor's as debt waiver becomes more likely
You may also be interested in the following articles...
Delta-Korean Air joint venture creates trans-Pacific's second largest bloc. Cathay, EVA under threat
The unprecedented aviation market growth between Asia and North America is forcing airlines to re-evaluate their core strategy and reassess who is a competitor and who could be a partner. It seems probable that Delta Air Lines and Korean Air will form a joint venture, potentially making them the second largest trans-Pacific bloc.
The next two largest airlines without a deep partnership, EVA Air and Cathay Pacific, are having to confront significant change, without the support of partners. Delta-Korean Air brings United-ANA its closest rival yet, while the American-JAL JV – already smaller – needs bulking up.
Korean Air brings Delta a wider network in Asia than ANA or JAL offer to their respective JV partners, United and American. A Korean Air-Delta JV could result in more destinations and flights being added once they are able to sell jointly.
Asia-Europe slowest-growing major market but dynamic: AF-KLM and SIA shrink as oneworld, China grow
Asia-Europe, which is one of IATA's big four international markets, has become the slowest-growing. The market underwent RPK expansion of only 1.5% in Jul-2016, the latest data available. Uncertainty in Europe and terrorism fears mean that some Asian travellers choose Australia and North America or, as IATA has flagged – travel within Asia, which has expanded by nearly double digits.
Although market expansion was slow in the first part of 2016, so too was capacity. Yet this changed in Jul-2016 as capacity increased more quickly, perhaps as airlines expected a stronger summer. Despite slow passenger growth, dynamics are highly varied – except for yield declines. The combined RPK growth of IAG (7.2%) Cathay Pacific (3.7%) and Finnair (8.7%) was not enough to offset the contraction of the largest airline in the market, AF-KLM (7.9%).
From the reported geographic data by all major airlines, load factors are falling.