JAL vicina al bankruptcy filing?
Reports: JAL bankruptcy filing nearing; American/Delta bids to be rejected
Tuesday January 12, 2010
Japan Airlines is expected to announce within days that it will file for bankruptcy later this month as part of a turnaround plan that will include eliminating 15,600 jobs, according to news reports from Tokyo.
Kyodo News stated that the Enterprise Turnaround Initiative Corp. of Japan, which will oversee JAL's restructuring, is detailing a recovery path that will enable the carrier to keep operating during bankruptcy but force it to make significant cuts in jobs, pension benefits and wages and to sell assets such as JAL Hotels. The job reductions, amounting to about 30% of its workforce, reportedly would be achieved by March 2013.
According to reports, ETIC will inject ¥300 billion ($3.2 billion) or more into the company to ensure JAL has enough cash to keep operating through the court-monitored process. The Japanese government's reluctance to provide the airline with a direct bailout reportedly is driving the decision to seek a court-managed restructuring.
Meanwhile, Nikkei reported that ETIC will reject investment offers from both American Airlines and Delta Air Lines, instead directing JAL to enter into an arrangement with one of the carriers that will involve close cooperation but no foreign ownership stake. However, AA Chairman and CEO Gerard Arpey told the Associated Press yesterday that he has not been informed by JAL or the Japanese government that AA's bid will be rejected.
ST Aerospace, which provides heavy maintenance for JAL's MD-11s, 747-400s, 767s and 777s, issued a statement saying that it understands "JAL may likely undergo some form of court-led restructuring similar to a Chapter 11 filing in the US." It added that the government likely "will issue a statement to countries where JAL has operations to guarantee public support for its national carrier." President Tay Kok Khiang said the MRO provider "will continue to work with the airline as we are confident that JAL will overcome its current difficulties."
by Geoffrey Thomas and Aaron Karp
ATWOnline
