28-Sep-2009 10:56 AM

Japan Government forms JAL task force; delays revival plan

Japan’s Minister of Land, Infrastructure, Transport and Tourism, Seiji Maehara, stated the finalisation of Japan Airlines’ revival plan would be delayed by two months to Nov-2009, until recommendations are presented by a newly established expert panel (Wall Street Journal/AP/Japan Times, 28-Sep-2009). Led by Shinjiro Takagi (a special adviser to Nomura Securities Co and former Chairman of the Industrial Revitalisation Corporation of Japan), the task force consists of five experts in industrial revitalisation and will also involve 20-30 experts examining the debts and assets fo the carrier. After recommendations are made, JAL will then develop an outline of a new business improvement plan by the end of Oct-2009 and finalise the plan around the end of Nov-2009. Mr Maehara added that JAL has yet to suffer critical financial problems, so the delay would present no significant problems. Prime Minister Yukio Hatoyama stated the new government wants to discard plans formed under the previous government and develop a "new scheme" for turning around JAL. [more - Perspective]

Japan Government: "Making the [restructuring] plan with people who understand the issue and can review it with an objective eye is the quickest way to achieving reform…. The limited amount of capital is a major problem [for JAL] and seeking investment from outside is a move in the right direction; but whether it can be done is uncertain," Seiji Maehara, Minister of Land, Infrastructure, Transport and Tourism. Source: Wall Street Journal, 28-Sep-2009.

Japan Government:  "JAL is the main body that will create the rehabilitation plan, but we will check whether it is fair and feasible from the viewpoints of third parties, experts and ordinary citizens," Shinjiro Takagi, Head of JAL expert panel.  Source: Japan Times, 28-Sep-2009.

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