16-Oct-2009 11:05 AM

Japan Airlines halts plans to sell resort flights unit, calls for CEO to resign

Japan Airlines (JAL) reportedly plans to halt a proposal to sell interests in its resort-bound flight operations, according to Nikkei English News, with the carrier to instead review other options, such as launching a business alliance with LCCs (Bloomberg/Reuters, 15-Oct-2009).

JAL's Restructuring Task Force, assembled by the Japan Transport Ministry, has meanwhile reportedly called for President, Haruka Nishimatsu, to resign amid the carrier's worsening performance (The Asahi Shimbun/The Yomiuri Shimbun, 15-Oct-2009). The Task Force also reportedly plans to establish a COO position upon the resignation of the current management team and is reportedly studying whether to invite someone from outside the company to fill the CEO position. The Task Force also reportedly intends to set up a selection committee in Nov-2009 and finalise the new management team in late Jan-2010.

The Task Force has also reportedly indicated that the airline needs more than JPY400 billion (USD4.4 billion) in financial assistance. However, concern has been expressed that creditors may resist a “large debt write-off” by the carrier (Bloomberg, 15-Oct-20

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