DTN News - AIRLINES NEWS / JAPAN EARTHQUAKE: Factbox ~ Airlines' Response To Japan Quake, Radiation Fears

DTN News - AIRLINES NEWS / JAPAN EARTHQUAKE: Factbox ~ Airlines' Response To Japan Quake, Radiation Fears

Source: DTN News - - This article compiled by Roger Smith from reliable sources Reuters

(NSI News Source Info) TOKYO, Japan - March 16, 2011:

Following are responses from airlines from several countries following Japan's earthquake and tsunami and subsequent crisis at a nuclear power complex.

Workers were briefly ordered to withdraw from a stricken nuclear power plant on Wednesday after radiation levels surged.

AUSTRALIA

-- Qantas said it was flying to Japan as normal.

CHINA

-- Air China said it had canceled some flights to Tokyo from Beijing and Shanghai, mainly due to lack of operational capacity at some airports(www.airchina.com.cn).

-- China Eastern Airlines suspended flights from Shanghai to Fukushima, but other flights between China and Japan were still operating and it was adding an extra flight to Tokyo on Thursday to help Chinese citizens get home.

-- China South Airlines said it had canceled one flight from Changchun to Sendai, which was badly hit by the tsunami, between March 14 and March 26. It added one more flight to Tokyo on Wednesday to get Chinese citizens back.

EUROPE

-- Deutsche Lufthansa said it was continuing to fly to Japan but was diverting flights away from Tokyo to Osaka and Nagoya via Seoul until at least the weekend.

-- Air France-KLM moved all its crew out of Tokyo to Osaka on Monday but a statement on its website on Wednesday said flights were continuing as normal.

-- British Airways, Virgin Atlantic and Finnair said they were still flying to Tokyo's Narita and Haneda airports.

HONG KONG

-- A Cathay Pacific spokesperson said in a statement: "We are monitoring the situation very carefully and so far there has been no authoritative suggestion that flight operations to Japan are likely to be affected."

MALAYSIA

-- Malaysia's AirAsia, Asia's largest budget carrier by fleet size, and Malaysian Airline System, the country's national carrier, said they were flying to Tokyo without any disruptions to schedule yet. But they say they were monitoring the situation.

NEW ZEALAND

-- Air New Zealand flights to Tokyo were continuing as per schedule for the time being but were being reviewed in the light of new information.

PHILIPPINES

-- Cebu Air, operator of budget carrier Cebu Pacific, said it had no plans for now to cancel its three times weekly flights to Osaka.

-- Philippine Airlines said it was closely monitoring the situation in Japan, but at the moment its operations center had determined no threat to its operations. The airline flies to Narita, Kansai, Nagoya and Fukuoka 32 times weekly.

SINGAPORE

-- Singapore Airlines said on its website that it was closely monitoring developments in Japan but that at this point, all its flights to and from Japan are operating as scheduled.

TAIWAN

-- EVA Airways said it would cancel flights to Tokyo and Sapporo until the end of March.

THAILAND

-- Thai Airways International was still flying to Japan as normal.

TURKEY

Turkish airlines said on its website it was flying as normal to Japan.

UNITED ARAB EMIRATES

- Emirates said on its website it was flying as normal to Japan.

UNITED STATES

Factbox

• FACTBOX-Travel warnings after Japan's earthquake
  Tue, Mar 15 2011

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• UPDATE 3-Airlines, travelers avoid Tokyo, fearing radiation
  Tue, Mar 15 2011
• Radiation fears spark panic, evacuations in Tokyo
  Tue, Mar 15 2011

*Link for This article compiled by Roger Smith from reliable sources Reuters

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DTN News: JAL Says Still Neutral On Delta Or American Tie-Up ~ Financial News

DTN News: JAL Says Still Neutral On Delta Or American Tie-Up ~ Financial News * JAL wants to make decision on Delta/American soon-president

* New management's first briefing since bankruptcy filing

*Source: DTN News / Reuters (NSI News Source Info) TOKYO, Japan - February 1, 2010: The new president of Japan Airlines Corp (9205.T) said the bankrupt carrier has not yet decided whether to stick with partner American Airlines (AMR.N) or defect to Delta Air Lines (DAL.N) and its SkyTeam group. "We are still neutral," Masaru Onishi, also the carrier's new chief operating officer, told a news conference on Monday, a little less than two weeks after it filed for bankruptcy. Onishi is part of a new management team led by chief executive Kazuo Inamori, the 77-year-old founder of electronics maker Kyocera Corp (6971.T). One of the new management's first major decisions will be whether to stay with Oneworld alliance partner American Airlines (AMR.N) or switch to rival Delta. Both U.S. carriers have been wooing JAL aggressively with offers of financial aid. JAL, Asia's largest carrier by revenues, filed for bankruptcy protection last month with about $25 billion in debt, and vowed to slash about a third of its work force and cut unprofitable routes as part of a state-supported restructuring plan. Some Japanese media had previously reported that JAL had already made a decision to end its alliance with American and join hands with Delta.

(Reporting by Nobuhiro Kubo; Editing by Michael Watson)

DTN News: Financial News TODAY January 19, 2010 ~ Japan Airlines Files For $25 Billion Bankruptcy

DTN News: Financial News TODAY January 19, 2010 ~ Japan Airlines Files For $25 Billion Bankruptcy *Source: DTN News / Reuters By Mayumi Negishi and Mariko Katsumura (NSI News Source Info) TOKYO, Japan - January 19, 2010: Japan Airlines Corp (JAL) (Tokyo:9205.T - News) filed for bankruptcy protection on Tuesday owing more than $25 billion, and vowed to slash 15,700 jobs and unprofitable routes as it tries to survive volatile fuel costs and fickle flyers.Japan Airlines President Haruka Nishimatsu, right, accompanied by Hiroshige Nishizawa, president of Enterprise Turnaround Initiative Corp. , speaks during a press conference in Tokyo, Japan, Tuesday, Jan. 19, 2010 shortly after Japan's flagship carrier filed for bankruptcy in one of the nation's largest corporate failures. Nishimatsu resigned, bowing deeply as he apologized for the company's troubles. A Japan Airlines Corp. (JAL)'s flag flies at the company's headquarters on January 19, 2010 in Tokyo, Japan. Asia's largest carrier JAL filed for bankruptcy protection and is put under the control of the state-backed Enterprise Turnaround Initiative Corporation of Japan (ETIC) for management reconstruction. JAL, Asia's largest airline by revenues and an ambassador for Japan across the world, will remain in the skies thanks to nearly 1 trillion yen ($11 billion) in state-backed support and faces a sweeping restructuring under a new board and management. Shareholders will be wiped out and creditors will forgive 730 billion yen in debt, with banks waiving 350 billion yen in loans, as part of the deal with the fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC). "JAL lacked strong governance and was unable to keep up with changing times," ETIC Executive Director Akitoshi Nakamura told a packed news conference. "In a sense JAL encapsulates what is a typical problem and hurdle for Japan as a whole." Bankruptcy will only be the beginning for an airline that once symbolized "Japan Inc's" international aspirations and now faces depleted capital, rising fuel prices and shrinking passenger numbers -- all on top of hefty restructuring costs. JAL, which has now been bailed out by the Japanese government four times in the past 10 years, will replace many of its older and less fuel-efficient planes. It also faces tough decisions about foreign capital and alliances. "It's unclear how JAL will be able to grow as a business," said Yasuhiro Matsumoto, credit analyst at Shinsei Securities. "I can't see how JAL is going to build its network domestically and internationally." JAL and two core units filed for court protection from creditors in a procedure similar to Chapter 11 in the United States. Combined, the three firms had 2.3 trillion yen in debt as of the end of September, making it Japan's fourth-largest ever bankruptcy and its biggest by a non-financial firm. Shares of JAL, which have fallen more than 90 percent since the start of the month, closed flat at 5 yen after trading down 2 yen to 3 yen. They will be delisted on February 20. With a market value of about $150 million, JAL is now smaller than minor carriers Croatia Airlines (HRAR.ZA) and Jazeera Airways (Kuwait:JAZK.KW - News) and is worth less than one Boeing 747. "I thought that there was no way that JAL would fail," said Akiko Saito, a 63-year-old retiree returning from Sydney to Tokyo's Haneda Airport. "Even when the value of my JAL shares fell from 800,000 yen to below 120,000 yen, I was convinced that it would recover, and I held on to my stock." JAL bonds maturing in 2013 were priced at the equivalent of just 27.8 cents on the dollar, versus around 70 cents last month, but traders said there was little trading appetite for the bonds on Tuesday. The dollar fell to a session low against the yen on the news. The bankruptcy move could make rival All Nippon Airways Co (Tokyo:9202.T - News) Japan's new flagship carrier, but a debt-free and leaner JAL could eventually become a formidable threat for ANA, according to some analysts. Shares in ANA fell 4.2 percent after rallying to a six-month high last week. DEBT-LADEN The "tough love" for JAL by Prime Minister Yukio Hatoyama's four-month-old Democratic Party-led government signals a shift from previous governments under the long-dominant Liberal Democratic Party, which had authored the previous JAL bailouts. "What this shows is that the nation won't just take total care of a company. They've now said they'll let badly run companies fail," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments. Following similar bankruptcies by overseas airlines such as Delta Air Lines (NYSE:DAL - News) and United Airlines (NasdaqGS:UAUA - News), JAL plans to slash its 51,862 workforce to 36,201 and to cut 14 international routes and 17 domestic routes in three years. The ETIC will support the carrier with about 300 billion yen in capital. The ETIC and the Development Bank of Japan will together provide a 600 billion yen credit line. Fuel-hedging contracts may also be affected by a bankruptcy filing. JAL uses mostly Brent forward contracts and about 40 billion yen is estimated to be exposed in the event of an automatic termination, a source familiar with the matter said. JAL will also need to decide about competing aid offers from Oneworld alliance partner American Airlines (NYSE:AMR - News) and rival Delta, which wants to woo JAL to its SkyTeam group. That decision will be left to the new management, to be led by Kazuo Inamori, the 77-year-old founder of electronics maker Kyocera Corp (Tokyo:6971.T - News), who was tapped last week to become JAL's new chief executive officer to oversee its restructuring. JAL's restructuring plan also calls for increasing fuel-efficiency in its fleet, replacing all 37 of its B747-400 jets and 16 MD90s, both supplied by Boeing (NYSE:BA - News), with 33 small jets and 17 regional ones. ($1=90.43 Yen) (Additional reporting by Nathan Layne, Nobuhiro Kubo, Chris Meyers and Linda Sieg; Writing by Lincoln Feast; Editing by Jean Yoon, Tim Hepher and Elaine Hardcastle)

DTN News: Financial News TODAY January 18, 2010 ~ Japan Airlines Shares Drop 45% As Bankruptcy Fears Grow

DTN News: Financial News TODAY January 18, 2010 ~ Japan Airlines Shares Drop 45% As Bankruptcy Fears Grow *ANALYSIS: By Roland Buerk, BBC News, Tokyo Japan's new government has been agonising for months over how to keep JAL in the air and who should pay the price for its massive debts - the taxpayer, shareholders, staff and pensioners or the banks. A decision is emerging - all of them. Banks that hold JAL's debt are reported to have tentatively agreed to the plan - the alternative could be a total collapse which would imperil their chances of seeing any of the money again. Circling the mess are the global airline alliances, Oneworld and SkyTeam, which are still interested in JAL because of the access it offers to Asia. But reports in Tokyo say both may be rejected for now as their involvement would complicate the process.

*Source: DTN News / BBC (NSI News Source Info) TOKYO, Japan - January 18, 2010: Shares in Japan Airlines (JAL) fell by 45% to a new all-time low on Tuesday as fears grow that the carrier is heading for bankruptcy. The fall came despite an improved offer of investment from American Airlines, up from $1bn to $1.3bn. The US carrier is keen to link into JAL's lucrative Asian routes. Meanwhile, JAL's current and former employees have agreed to cuts in the company's pension scheme payouts. The fund has a $3.6bn (£2.2bn) deficit. Those cuts are crucial to the company gaining any government support. Battle for skies American Airlines' improved offer of help also comes with strings attached. It wants JAL to stay with the Oneworld alliance that American is also a member of, along with British Airways and Qantas. JAL has another, rival, offer of support from the US. Delta Airlines is offering $500m and wants JAL to join its SkyTeam network. Thomas W Horton, chief financial officer of American's parent, AMR Corp, said: "While JAL and the Japanese government might decide to address capital requirements internally - and we certainly would understand and respect that - our offer of capital would be available if this was deemed an appropriate resource to aid in the restructuring of JAL." Staff cuts Japan Airlines applied for a government bail-out in October last year through the state-backed Enterprise Turnaround Initiative Corporation of Japan (ETIC) - a body able to draw on taxpayers' money to prop up the business while it restructures. A decision on that is due before the end of January, but the ETIC requires cost-cutting concessions, which not only include the restructuring of pension arrangements but also potentially severe job cuts of up to a third of the company's 49,000-strong workforce. It will then inject fresh capital into JAL, provided the airline files for bankruptcy and creditors agree to waive around 350bn yen ($3.8bn, £2.36bn) in debts.

DTN News: Financial News TODAY January 16, 2010 ~ JAL Gets $1.6 Billion Loan

DTN News: Financial News TODAY January 16, 2010 ~ JAL Gets $1.6 Billion Loan *Source: DTN News / Int'l Media By Yoshio Takahashi (NSI News Source Info) TOKYO, Japan - January 16, 2010: Japan Airlines Corp. said Friday that it has procured a loan of 145 billion yen ($1.6 billion) from the state-backed Development Bank of Japan, as the struggling airline continues to draft its restructuring plan. The loan is part of the DBJ's credit line to JAL—doubled to 200 billion yen earlier this month—in an effort to help the carrier maintain its daily operations while it restructures. JAL had already used 55 billion yen of the initial credit line provided in November. Meanwhile, Japan's transport minister said Friday that a state-backed corporate-turnaround body will start its rehabilitation process for JAL on Tuesday, and the carrier is expected to file for court-led rehabilitation on the same day. Transport Minister Seiji Maehara made the announcement to reporters following a meeting with Prime Minister Yukio Hatoyama. Quasi-governmental investment fund Enterprise Turnaround Initiative Corp. has proposed that JAL undergo a modified version of a court-led rehabilitation process, according to a person familiar with the situation.—Kazuhiro Shimamura contributed to this article. Write to Yoshio Takahashi at yoshio.takahashi@dowjones.com

DTN News: Financial News TODAY January 15, 2010 ~ JAL Draws On Emergency Funds As Bankruptcy Looms

DTN News: Financial News TODAY January 15, 2010 ~ JAL Draws On Emergency Funds As Bankruptcy Looms *Source: DTN News / Reuters By Mariko Katsumura and Nathan Layne (NSI News Source Info) TOKYO, Japan - January 15, 2010: Japan Airlines Corp (Tokyo:9205.T - News) moved a step closer to bankruptcy on Friday by drawing down $1.6 billion in emergency funding and with the prime minister set to decide when the carrier will start a state-led restructuring. JAL, Asia's largest airline by revenues but with a market value that has collapsed to below that of budget carrier Skymark Airlines (Tokyo:9204.T - News), will file for bankruptcy protection as early as Tuesday, sources have told Reuters, as part of a restructuring being crafted by a state-backed turnaround fund. Transport Minister Seiji Maehara said he would meet Prime Minister Yukio Hatoyama on Friday to set "X day," a term widely used by media and bankers working on JAL's restructuring to refer to when it will file for bankruptcy. "We are doing everything possible to reduce anxiety and ensure that X-day will not cause any confusion," Maehara told reporters. JAL, mired in losses and weighed down by about $16 billion in debt, applied in October to the Enterprise Turnaround Initiative Corp of Japan (ETIC), a fund that can draw on government-backed funding to bail out ailing firms. The ETIC is expected to make an official decision next week to support the carrier with public money after it files for what could rank as Japan's sixth-largest bankruptcy. JAL announced on Friday it had procured 145 billion yen ($1.6 billion) in funds remaining from a 200 billion yen credit line provided by the state-owned Development Bank of Japan, indicating it was building up emergency cash. "We are preparing so we can make the necessary outlays when needed," JAL spokesman Satoru Tanaka said. Japan Airlines International, which handles domestic and overseas flights, and JAL Capital, which raises operational funds, are among the units that will also file for bankruptcy and be part of the bailout, a source with knowledge of the matter said. JAL declined to comment. "We expect at least the group's three core companies -- JAL, JAL International and JAL Capital -- to file for bankruptcy protection under the government-led rehabilitation scheme," said Minoru Nakano, an official at bankruptcy research firm Teikoku Databank. "It's also possible that some other restructuring measures will be announced for other smaller units at the same time." Shares of JAL closed down 1 yen at 7 yen, giving it a market value of about $210 million. The stock has lost about $1.8 billion this week amid growing expectations it will file for bankruptcy and be delisted from the Tokyo exchange. The ETIC plans to put about 300 billion yen in fresh capital into JAL after it files for bankruptcy. Its banks, which include the country's top private lenders, have been asked forgive about 350 billion yen in debts, sources have said. JAL's restructuring will include cutting some 15,000 jobs, or roughly a third of its work force, eliminating two dozen more routes and halving the number of subsidiaries through streamlining and asset sales, a source said. The overhaul will be led by Kazuo Inamori, the 77-year old founder of electronics maker Kyocera Corp (Tokyo:6971.T - News), who agreed on Wednesday to replace current chief executive Haruka Nishimatsu. Hilton Worldwide said on Friday that it would take over the management of a JAL hotel in located in Fukuoka in southwestern Japan. Hilton said it would spend $20 million to refurbish the hotel, one of Japan's largest with more than 1,000 rooms. (Additional reporting by Yuko Inoue; Editing by Michael Watson)

DTN News: Financial News TODAY January 14, 2010 ~ JAL Budget Carrier Eyed

DTN News: Financial News TODAY January 14, 2010 ~ JAL Budget Carrier Eyed *JAL shares rise on heavy speculative trade after hitting all-time low, Jan. 14 (Kyodo) Shares of Japan Airlines ended at 8 yen Thursday, up 1 yen or about 14 percent, amid heavy speculative trading on continued concerns about an imminent delisting of the stock from the Tokyo Stock Exchange.

*Kyocera founder to be new boss

*Source: DTN News / The Japan Times (NSI News Source Info) TOKYO, Japan - January 14, 2010: The state-backed body tasked with rehabilitating Japan Airlines is looking to set up a budget carrier in the JAL group that would fly from two domestic airports to popular tourist locales in and outside Japan, sources said Wednesday. Enterprise Turnaround Initiative Corp. of Japan would aim toward starting the discount flights by March 2013, offering low fares while saving costs, the sources said. The turnaround body is considering operating discount routes from Kansai International Airport in Osaka and Chubu International Airport near Nagoya to popular tourist spots in Asia and domestic locations, including Hokkaido and Okinawa, the sources said. ETIC is compiling a court-led rehabilitation plan for JAL that is likely to involve the elimination of 14 international and 12 domestic routes. Meanwhile, Kazuo Inamori, honorary chairman and founder of Kyocera Corp., accepted Wednesday the government's offer to be JAL's chief executive officer. Prime Minister Yukio Hatoyama met Inamori, 77, and asked to him to take up the position the same day. Inamori will work unpaid three to four days a week at JAL's office, sources said. "After listening to what they had to say, I told them that JAL's restructuring is possible if the plan is implemented as it is," Inamori told reporters earlier in the day. In addition to restructuring, sources said ETIC is also preparing measures to make sure JAL can stay competitive amid the growing popularity of budget airlines worldwide. Also to help save costs, ETIC is considering relocating JAL's headquarters from Higashi Shinagawa in Tokyo to a site closer to Haneda airport. Under study is a plan to set up the proposed low-cost carrier with other firms, including some from outside the airline business. The budget airline might take over some routes linking the Kansai and Chubu airports with popular domestic and overseas tourist destinations, which are now operated by a group firm, JAL Express Co. The proposed discount airline would reduce costs by trimming the size of flight crews, charging for drinks and offering only economy-class seats on domestic flights. Also under consideration is selling some of the shares JAL holds in its group firms — Japan Trans Ocean Air Co. and Ryukyu Air Commuter Co., which serve Japan's remote islands — to local authorities. If the plan goes through, the two airlines would no longer be JAL's consolidated subsidiaries.

DTN News: Financial News TODAY January 13, 2010 ~ JAL Heads For Bankruptcy With $16 Billion In Debt

DTN News: Financial News TODAY January 13, 2010 ~ JAL Heads For Bankruptcy With $16 Billion In Debt *Source: DTN News / Int'l Media (NSI News Source Info) TOKYO, Japan - January 13, 2010: Japan Airlines (9205.T) will likely file for bankruptcy protection next week, sources with knowledge of the matter said, in what would be one of the largest corporate failures in Japanese history. Here are some facts about the likely procedure and restructuring, and a list of Japan's biggest bankruptcies. * A state-backed fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC), is eyeing Jan. 19 to 22 for Japan Airlines to file for bankruptcy. The ETIC would then officially announce plans to support the carrier as its sponsor in the proceedings, including plans for a capital injection of about 300 billion yen. * JAL is expected to file for protection from creditors under the Corporate Rehabilitation Law, one of two major legal proceedings that allow for a company to continue its operations and pursue a revival, similar to Chapter 11 in the United States. In this bankruptcy procedure, management is normally sacked and a court-appointed trustee is given the power to administer the company's assets and its business. This is one of the key differences compared with the Civil Rehabilitation Law, which allows current management to retain authority. * JAL's filing will be "pre-packaged", as the debt waiver and sponsor investor will be decided beforehand, allowing for a smoother rehabilitation process. The ETIC is asking banks to forgive about 350 billion yen in debt. JAL will likely be the first company in Japan to secure a debt waiver before the bankruptcy filing is made. * Bankruptcy is a well-worn route for overseas airlines. Delta Air Lines (DAL.N), United Airlines (UAUA.O) and US Airways (LCC.N) are among the U.S. carriers to have been through and emerged from bankruptcy in recent years. JAL received emergency loans from the state-owned Development Bank of Japan in 2001 in the wake of the Sept. 11 terrorist attacks in the United States, in 2003 after the spread of SARS, and again last year. But it has never filed for bankruptcy. * JAL was saddled with about 1.5 trillion yen ($16.3 billion) in total liabilities as of the end of September. At that level of debt, its bankruptcy would be the sixth largest in Japan's history. Here is a list of Japan's five largest bankruptcies: COMPANY WHEN DEBT 1. Kyoei Life Insurance OCT 2000 4,529,693 2. Lehman Brothers Japan SEPT 2008 3,431,400 3. Chiyoda Mutual Life Insurance OCT 2000 2,936,600 4. Japan Leasing SEPT 1998 2,180,300 5. Mycal SEPT 2001 1,600,000 NOTE: *Value is in millions of yen.

SOURCE: Tokyo Shoko Research (Compiled by Junko Fujita)

DTN News: Financial News TODAY January 11, 2010 ~ Japan Fund Leaning Towards JAL Delisting ~ Reports/R.S.

DTN News: Financial News TODAY January 11, 2010 ~ Japan Fund Leaning Towards JAL Delisting ~ Reports/R.S. *Source: DTN News / Reuters

(NSI News Source Info) TOKYO, Japan - January 11, 2010: A state-backed fund crafting a restructuring plan for Japan Airlines (9205.T) is leaning toward a delisting of the carrier after it files for bankruptcy, a source with knowledge of the matter said. The fund, called the Enterprise Turnaround Initiative Corp of Japan (ETIC), has been considering a plan that would allow Japan Airlines to keep its listing on the Tokyo Stock Exchange, sources told Reuters last week. The fund is still debating the issue but a delisting is currently its main scenario as it seeks to hold shareholders accountable for the carrier's downturn along with creditors being asked to forgive debt, the source said. The source was not authorized to speak publicly about the issue. The ETIC declined to comment. The ETIC has proposed to JAL creditors that the carrier's restructuring include it filing for bankruptcy protection under the Corporate Rehabilitation Law, a process similar to Chapter 11 in the United States, sources have told Reuters. Normally that would lead to a complete reduction of capital, wiping out the value of a company's shares. But the ETIC has been considering a plan for a small portion of its capital -- at maximum a few percent -- to be retained. That would allow JAL to remain listed even after a bankruptcy filing, which sources say could come as early as January 19. "A delisting is right now the main scenario," the source said. "But both options are still being considered and a final decision has not been made." JAL's creditors, which include Mitsubishi UFJ Financial Group (8306.T), Mizuho Financial Group (MUFG) (8411.T) and Sumitomo Mitsui Financial Group (8316.T), are keen for JAL to keep its listing so as not to entirely wipe out their shareholdings. The core banking units of MUFG and Mizuho are among JAL's top stockholders in terms of both common and preferred shares. NEW MANAGEMENT For its part, the ETIC is concerned over the potential business impact of a delisting. A good portion of JAL's stock is in the hands of individuals, which hold the shares for fare discounts and other incentives. The prospect of JAL keeping its listing is one of the factors supporting its stock. The carrier still has a market value of about $2 billion even as the likelihood of a bankruptcy grows. The Tokyo Stock Exchange revised its rules in 2003 to allow companies that had filed for bankruptcy protection to retain their listing if they met certain criteria, one of which is that they do not implement a complete reduction of capital. But until now no company that has applied for protection under the Corporate Rehabilitation Law has kept their stock listing. JAL would be the first case. Even if JAL were able to keep its listing, the carrier's existing shareholders will likely see the value of their stock diluted significantly if it wins the support of the ETIC. The ETIC plans to inject about 300 billion yen in fresh capital into JAL, provided it goes through with the bankruptcy filing and banks agree to waive 350 billion yen in debt, sources have said. Even as it appears headed for bankruptcy, Delta Air Lines (DAL.N) and American Airlines (AMR.N) have been courting JAL with rival offers of financial aid and close ties on overseas routes. The ETIC will not invite either U.S. carrier to invest in JAL at this stage as it believes a decision on its overseas partner should be left to new management, a source told Reuters. Bringing in either Delta or American as shareholders could also complicate the ETIC's efforts to exit its investment, which it must do in 3 years. ($1=92.25 Yen)

(Editing by Muralikumar Anantharaman)

DTN News: Financial News TODAY January 09, 2010 ~ JAL Could File For Bankruptcy On Jan. 19 According Official Media

DTN News: Financial News TODAY January 09, 2010 ~ JAL Could File For Bankruptcy On Jan. 19 According Official Media * Reports: JAL could file for bankruptcy on Jan. 19, cut 13,000 jobs

*Source: DTN News / Int'l Media (NSI News Source Info) TOKYO, Japan - January 09, 2010: Struggling Japan Airlines Corp. could file for bankruptcy as early as Jan. 19 under a government-backed restructuring plan that includes 13,000 job cuts, reports said Saturday. Saddled with massive losses, Asia's biggest airline is seeking a state bailout. On Friday, the government approved a court-led bankruptcy option proposed by a state-backed corporate turnaround body, the business newspaper Nikkei said, citing no sources. With government approval, the airline, known as JAL, could file for bankruptcy with the Tokyo District Court as early as Jan. 19, it said. The national newspaper Asahi also said JAL's bankruptcy filing could come Jan. 19. A JAL spokeswoman said the company was still in discussions about restructuring plans, but regardless of the decision, JAL's flight operations will continue. Officials at the transport ministry could not be reached for comment. The Nikkei said JAL will cut 13,000 jobs -- nearly 30 percent of its work force -- over the next three years and withdraw from nearly 50 routes at home and abroad. In a bid to ease JAL's debt burden, the corporate turnaround body will ask banks to forgive 350 billion yen ($3.8 billion) of debt owed by the troubled airline, it said. Amid bankruptcy fears, shares in JAL continued to drop, with their closing price tumbling nearly 12 percent Friday to 67 yen. At the beginning of 2009, JAL's share price stood at 213 yen. JAL is also weighing cash offers from Delta Air Lines Inc., the world's biggest airline operator, and its rival American Airlines. The U.S. carriers are fighting over JAL because of its strong routes in the fast-growing Asian market, especially China. Delta and its SkyTeam partners have offered $1 billion to JAL, while American Airlines has countered with a $1.4 billion offer. JAL and American Airlines are in the oneworld alliance, which also includes British Airways.

DTN News: Airlines News TODAY December 28, 2009 ~ Problematic JAL Faces Bankruptcy Option According To Report

DTN News: Airlines News TODAY December 28, 2009 ~ Problematic JAL Faces Bankruptcy Option According To Report *Source: DTN News / Int'l Media (NSI News Source Info) TOKYO, Japan - December 28, 2009: A state-backed turnaround body overseeing Japan Airlines' restructuring is considering bankruptcy as one option for the cash-strapped carrier, reports said Monday.A Japan Airlines aircraft is parked at Haneda airport in Tokyo December 28, 2009. Bankruptcy has been proposed by a state-backed fund as an option in the restructuring of Japan Airlines, two sources familiar with the matter said. Proposals submitted to JAL's creditors by the Enterprise Turnaround Initiative Corp. include filing for protection from creditors to give the airline time to put its finances in order, the Nikkei business daily said. But debt-ridden JAL, seeking its fourth government bailout since 2001, aims to avoid bankruptcy proceedings. "We are pursuing the possibility of restructuring without bankruptcy," JAL spokesman Kojiro Waki told AFP. An official at the turnaround body declined to comment on the reports. The airline has said it plans thousands of job cuts and a drastic reduction in routes as part of its efforts to return to profitability. JAL has been offered financial assistance by both American Airlines and Delta Air Lines, who are competing to take a minority stake in the Japanese carrier, eyeing its coveted Asian landing slots. Japan's government has ruled out allowing JAL to collapse, but has left the door open to possible bankruptcy proceedings to allow the group to restructure more easily.

DTN News: Airlines News TODAY October 7, 2009 ~ Japan Airlines To Focus On Internal Restructure, Talks With Delta Air Lines And American Deferred

DTN News: Airlines News TODAY October 7, 2009 ~ Japan Airlines To Focus On Internal Restructure, Talks With Delta Air Lines And American Deferred

*Source: DTN News / Centre For Aviation (NSI News Source Info) TOKYO, Japan - October 7, 2009: Japan Airlines (JAL) has reportedly deferred talks with Delta Air Lines and American Airlines over possible equity investments. This will allow JAL (and the government) to focus on developing a restructuring plan with a government-backed task force, according to the Kyodo newspaper. The move, if confirmed, would suggest the heavily indebted and loss-making JAL has gained some reassurances the government will guarantee the carrier’s funding arrangements at least until the end of the current financial year. For American Airlines – and the oneworld alliance its represents – the report, if confirmed, provides a welcome delay as a cold winter approaches, reducing the need for an imminent capital outlay, while continuing current alliance linkages. For the cashed-up Delta, the move is a potential disappointment, as the SkyTeam Alliance has no partner in Japan and US-Japan bilateral open skies talks are still on track for conclusion by the end of 2009. It is quite possible that the extraordinarily (by non-Japanese standards) complex network of JAL's subsidiaries and associated companies would actually create a nightmare for any sort of due diligence. In this report, we review some of the features of Japan Airlines’ (JAL) operations that, if addressed by the restructure, could make it a more attractive acquisition target. Unwieldy structure – 286 subsidiaries and affiliates JAL Group’s unwieldy structure involves, at last count in its 2008/09 Annual Report, some 203 consolidated and non-consolidated subsidiaries and 83 affiliates. Created over many years, through acquisitions in the good times and via restructuring exercises in the past, JAL’s arcane subsidiary and affiliate structure has ensured continued employment for thousands of JAL workers. But it has also created a massive management burden and will be complex to unravel. JAL’s major consolidated subsidiaries are as follows: Japan Airlines International Co Ltd Japan Transocean Air Co Ltd J-Air Co Ltd JALWAYS Co Ltd JAL express Co Ltd Japan Air Commuter Co Ltd JALPAK Co Ltd JAL tours Co Ltd JAL hotels company Co Ltd JAL Group’s structure comprises five main branches (Air Transportation, Airline-related, Travel Services, Credit Card/Leasing Services and ‘Other’ business), as well as its Hotel/Resorts business and a Wholesaling/Retailing arm.

READ full story at Centre for Asia Pacific Aviation....(Click here for link)

DTN News: Airlines News TODAY September 19, 2009 ~ Qantas Jettisons JAL Merger Rumour

DTN News: Airlines News TODAY September 19, 2009 ~ Qantas Jettisons JAL Merger Rumour

*Source: DTN News / THE AUSTRALIAN By Steve Creedy and Peter Alford

(NSI News Source Info) SYDNEY, Australia - September 19, 2009: QANTAS says speculation it has joined forces with American Airlines and British Airways to bid for Japan Air Lines is untrue. The rumours spread rapidly yesterday from Tokyo but were dismissed last night by Qantas head of government and corporate affairs David Epstein. "Obviously because we're close partners with both JAL and American Airlines and we're fellow members of the One World group," Mr Epstein said. "We have keen interest in both the future of JAL and any discussions American Airlines may be having with JAL. "But Qantas is not involved in any of the formal negotiations taking place between any parties nor are we engaged in any M&A (merger and acquisition) or consolidations discussions with any other airline." American moved last weekend to head off a proposal by its US rival Delta, the world's largest passenger carrier, to inject up to Y=50 billion ($629 million) of equity into JAL on condition it switched to the SkyTeam alliance. The Japanese flag-carrier, which secured a Y=100m government-guaranteed credit line in June, needs an estimated Y=250m more by March 31 to meet debt obligations, restructure its fleet and cover the costs of a drastic downsizing. American has also offered an equity injection, but it was unclear yesterday whether Qantas and BA were also offering funds. "We are considering various options but we can't specify anything further," a JAL spokeswoman told The Weekend Australian yesterday. With the US and Japan this week committing to negotiating an "open skies" agreement, JAL's ultimate choice of alliance and code-sharing partners will have a major bearing on winners and losers from the deregulation of Asia's most lucrative air passenger market. JAL, which joined One World in 2007, code-shares with American on trans-Pacific services and on Japan-Australia routes with Qantas and Jetstar. Although the largest foreign passenger carrier operating out of Japan, Delta and SkyTeam, has no Japanese code-sharer, a serious disadvantage in a cut-throat environment where the most cost-efficient way to move passengers in distant markets is by a domestic partner.