1-Oct-2009 11:29 AM

Japanese Government will provide support to JAL

Japan Prime Minister, Yukio Hatoyama, and Transport Minister, Seiji Maehara, stated the government would provide support for struggling Japan Airlines to avoid a  “worst-case scenario”, in a move aimed at dampening “excessive” concern regarding the carrier’s future  (Reuters/Associated Press/AFP/Dow Jones/Bloomberg, 30-Sep-2009). Mr Maehara emphasised the carrier currently has “more than enough reserve power” and is not facing an immediate cash shortage and that "JAL's self-reconstruction if fully possible”.

Meanwhile, Mr Maehara confirmed that foreign financial institutions are "feeling excessive concerns about JAL”. An Australian insurance company has refused to offer its guarantee to refund JAL's tickets, while a British credit company has stopped accepting transactions to issue JAL tickets.

Japan Government: “I'm confident that JAL can reconstruct on its own, and I would like to see that happen. But just in case, the government will provide support,” Yukio Hatoyama, Prime Minister. Source: Associated Press, 30-Sep-2009.

Japan Government: "I believe the rehabilitation of JAL is more than possible. In the case of emergency, the government will back up JAL to prevent its operations from being disrupted or its capital flow from being blocked," Seiji Maehara, Transport Minister. Source: AFP, 30-Sep-2009.

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