Fry DEJAL(tm)

[Taro Toporific]

[wuchan]

[Tsuru]

Cash infusion my ass.... shares, that's what they want!

[IkemenTommy]

Two crap airlines combining to become one gigantic turd.

[Bucky]

An interesting side bar to this proposed JAL/DELTA deal is
"a new bilateral treaty, which could take effect as early as next year that would open the Tokyo market to more international flights.
A new agreement would open the market to more airlines, for the first time permitting limited international flying between Haneda and the U.S."

For the first time since 1978 when Narita opened that is.

I would find flying to Haneda far more convenient that bum-fuck Narita.

[IkemenTommy]

A new agreement would open the market to more airlines, for the first time permitting limited international flying between Haneda and the U.S."[/URL]

For the first time since 1978 when Narita opened that is.

I would find flying to Haneda far more convenient that bum-fuck Narita.

Now that could be of interest for me. It's a risky trade-off considering JALTA (or whatever they wanna call it) could end up literally nose diving into the middle of Pacific at any given day.

Nah, I'll stick with my current carrier instead.

[2triky]

Report: Struggling JAL in talks with Air France-KLM over capital tie-up

* On Saturday September 12, 2009, 7:59 am EDT

TOKYO (AP) -- Struggling Japan Airlines Corp. has entered talks with Air France-KLM over a capital tie-up, a newspaper said Saturday.

Asia's biggest airline hopes to expand its businesses in Europe via the capital alliance with Air France-KLM, according to the Yomiuri newspaper, Japan's top-selling daily. The report cited no sources and officials at the Japanese airline, known as JAL, could not be reached for comment Saturday.

JAL said Friday it was considering various tie-ups with a wide variety of potential partners but nothing had been decided.

JAL is in the midst of major restructuring as the airline incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June. It has forecast a net loss of 63 billion yen for the current fiscal year to March 2010, and plans to cut the number of flights and slash costs by 53 billion yen during the current fiscal year and another 100 billion yen in the next fiscal year.

Apart from Air France-KLM, JAL is also seeking a bigger capital injection from Delta Air Lines, the Yomiuri said.

Delta -- the world's biggest airline operator -- is considering making a cash infusion of a couple hundred million dollars to aid JAL, according to a person briefed on the talks Friday.

In exchange for the infusion, the person said Delta could get a stake in JAL, an expanded presence in Japan and coveted access to the closest airport to the Tokyo business center. The Yomiuri said Delta could become a top shareholder of JAL.

But the talks between JAL and Delta were in their preliminary stage, and it was unclear what form a partnership between the two airlines might take, said the person, who asked not to be identified by name because of the sensitivity of the discussions.

Japan's Nikkei business daily quoted a senior JAL official Saturday as saying the tie-up with Delta would be difficult due to the Japanese airline's alliance with American Airlines.

JAL has a codeshare agreement with American Airlines as part of its participation in the oneworld alliance. Delta's SkyTeam alliance currently doesn't have a Japanese partner.

Instead of Delta, JAL may seek a capital injection from American Airlines, the Nikkei said.

Among U.S. carriers, Atlanta-based Delta has a relatively large Japan presence by virtue of its acquisition last year of Northwest, but its market share there is still dwarfed by that of Japanese carriers. In the Tokyo market, Delta operates from Narita Airport, the main international airport.

Delta has not been allowed to serve Haneda Airport, a mostly domestic airport that is much closer to the center of Tokyo. The U.S. and Japanese governments have been in talks about air service between the countries, though it is unclear how those talks will turn out.

[2triky]

Latest article from the AP news wire


AP Source: American Airlines talking with struggling JAL about a cash infusion

* By David Koenig, AP Airlines Writer
* On Saturday September 12, 2009, 8:12 pm EDT

DALLAS (AP) -- American Airlines parent AMR Corp. is negotiating for closer ties and possibly an investment in financially troubled Japan Airlines Corp., according to a person familiar with the talks.

American would like to form a joint business venture with JAL in which the two carriers would seek antitrust immunity to work closely in setting schedules and prices for service around the world, according to the person, who spoke Saturday on condition of anonymity because of the sensitive nature of the talks.

The negotiations, which grew more intense over the past four weeks and included meetings in Texas and Tokyo, raised the specter of a bidding war for a piece of JAL.

Delta Air Lines Inc., the world's biggest airline operator, also is in preliminary discussions about buying a stake in JAL for about $300 million. Delta could become a leading shareholder in JAL and get coveted access to Haneda Airport, which is close Tokyo's business district, according to a person briefed on the Delta situation.

A spokesman for Fort Worth, Texas-based AMR, Roger Frizzell, said, "We are in discussions at the senior executive level in Japan with JAL." He declined to comment further.

The person familiar with AMR's negotiations said that while AMR might invest in JAL, the two sides had not settled on an amount or the nature of the investment. AMR could buy a stake in JAL or invest in senior debt that could be converted to stock, the person said.

A cash infusion would help JAL, which reported a $1 billion loss in its most recent quarter.

American and JAL already have a so-called code-sharing agreement in which they sell seats on each other's flights. If they won immunity from antitrust laws, they could cooperate in setting prices and schedules. For example, instead of each operating a Chicago-to-Tokyo flight around the same time, they could stagger the flights to maximize traffic while splitting the revenue.

Delta, which declined to comment, doesn't have a Japanese partner. A Delta-JAL hookup would raise doubts about JAL's ability to remain in oneworld, an alliance of airlines that includes American and British Airways. Delta is in another alliance, called SkyTeam, which also includes Air France-KLM.

A Japanese newspaper reported Saturday that JAL has entered talks with Air France-KLM. Yomiuri, Japan's top-selling daily, said JAL hoped to expand its business in Europe with through Air France-KLM.

JAL officials said Friday that they were considering various tie-ups with a wide variety of potential partners, but nothing had been decided.

JAL is in the midst of major restructuring. The airline posted its biggest-ever quarterly loss of 99 billion yen ($1 billion) in the April-to-June period. It has forecast a net loss of 63 billion yen for the current fiscal year, which ends next March, and plans to cut the number of flights and slash costs by 53 billion yen during this fiscal year and another 100 billion yen in the next year.

[Tsuru]

Wow, everybody sure wants to get a slice of that pie don't they?

[Samurai_Jerk]

Wow, everybody sure wants to get a slice of that pie don't they?

It must be the access to Haneda that's given them all hard-ons for JAL.

[Mulboyne]

It must be the access to Haneda that's given them all hard-ons for JAL.

There's also the fact that access to either JAL or ANA has never been on the agenda before. Even if you thought JAL was a total basket case, you'd think long and hard before turning down a chance to be involved.

[2triky]

from Reuters

American Airlines in talks to invest in JAL: source
Sun Sep 13, 2009 8:54am EDT

By Nathan Layne

TOKYO (Reuters) - American Airlines is in talks to take a minority stake in Japan Airlines (JAL) and form a joint venture with the struggling airline, a source said, pitting it against a rival bid from Delta Airlines.

JAL, Asia's largest airline by revenues, lost about $1 billion last quarter and has been seeking investors to prop up its finances for a state-supervised overhaul likely to include heavy job cuts, a reduction in routes and asset sales.

American Airlines, a unit of AMR Corp, has held talks with JAL over several weeks on forming a joint venture under which the two would share revenues on flights and offer business customers joint contracts, the source said.

The source, who has direct knowledge of the talks, spoke on condition of anonymity because the negotiations are not public.

JAL is also weighing an offer from Delta, a source told Reuters last week. According to Japanese media, Delta would inject up to 50 billion yen ($551 million) into JAL and wants a tie-up that would include code-sharing on international flights.

The proposed venture between American and JAL hinges on the enactment of an "open skies" agreement now being discussed by the Japanese and U.S. governments which would allow for close cooperation on flight scheduling and sharing of profit.

"I'm not talking about hugs and kisses. I'm talking about economic value to Japan Airlines," the source said. "What we've been talking about is actually expanding the relationship not just maintaining it."

JAL and American have had a code-sharing agreement for a decade and are both members of the Oneworld alliance, which pools frequent flyer incentive schemes. Other members of Oneworld are British Airways and Cathay Pacific Airways.

A JAL spokeswoman declined to comment on specific talks with other airlines, including media reports that Air France-KLM may also look to invest in JAL.

"We are looking at a wide variety of measures, and that may include tie-ups with airlines," JAL's Sze Hunn Yap said.

DEFECTION?

American is keen to preventing JAL from forming a tie with Delta, which became the world's largest carrier when it bought Northwest Airlines last year and could use JAL to increase its international footprint.

Delta operates a hub at Narita airport but is without a Japanese partner. It could try to get JAL to defect from Oneworld for the SkyTeam alliance, which along with Delta includes Air France, Korean Air and Russia's Aeroflot.

In addition to the size of any capital injection, American Airlines will be pushing JAL executives to consider what they see as more compelling long-term economic benefits of joining hands with American as opposed to Delta.

These include less direct competition in Asia and a relationship that would be on a more equal footing, the source said, adding a senior executive would be in Tokyo this week to continue their discussions with JAL.

"Delta, now that they've hooked up with Northwest ... have significant hub operations here in Narita. So the question is for JAL is would it end up being a junior partner to Delta," the source said.

JAL is headed for its second straight annual loss in its year to March 2010, hit by the global economic downturn and heavy fixed costs. It is due to submit a restructuring plan this month, a condition of a 100 billion yen state-backed credit line secured in June.

The airline is also considering raising an additional 250 billion yen by March to help fund restructuring, the Nikkei business daily reported on Sunday. That would include about 100 billion yen through an issue of new shares, the paper said.

Shares would help bolster its shareholders' equity ratio, which fell to 9.3 percent at the end of its first quarter on June 30, about half that of rival All Nippon Airways.

Any investment by American or Delta would likely serve as "seed money that helps get other investors motivated," the source said, indicating other investors would be involved.

JAL also plans to ask aircraft makers, trading houses, investment funds and the Development Bank of Japan to buy shares, the Nikkei said.

[Bucky]

[IkemenTommy]

I had a chance to go drinking with two Gals from JAL last night and we got in the whole discussion about the merger and how shitty JAL's current financial situation was. One of them was telling me how everyone, especially in the administrative positions, is worried about their jobs if Delta and JAL ever decide to tie the knot.

I asked if ANA and JAL should ever merge. She laughed and said if they ever merged, they would be called JANA (J[color="Gray"]AL[/color] + ANA). Then I thought for a second.. why place them in that order when you can have ANA+[color="Gray"]JA[/color]L. I was so close from saying it and blow my chances with her but she read my mind at that moment and just kept smiling.

[Bucky]

I had a chance to go drinking with two Gals from JAL last night

Pix or it didn't happen!

[IkemenTommy]

Pix or it didn't happen!

Huh?

Had to kick her out of bed at 5am cuz she had the flight to Fukuoka this morning..

[Bucky]

Nice:clap:
What happened to the other one?

[2triky]

Struggling Japan Airlines seeks public money
Japan Airlines president says money-losing carrier applying for public funds

* By Mari Yamaguchi, Associated Press Writer
* On Thursday September 24, 2009, 9:05 am EDT

TOKYO (AP) -- The president of Japan Airlines said Thursday the money-losing carrier is applying for public funds to help turn around the company after it was pummeled by the downturn in global air travel, but it quickly received a reluctant response from the transport minister.

JAL President Haruka Nishimatsu said he told Land and Transport Minister Seiji Maehara that the airline is seeking emergency government aid under an industrial revitalization law that is intended to help struggling companies.

"I have made the request from JAL" seeking approval for an injection of public funds, Nishimatsu told reporters after the talks. He refused to reveal how much money the airline wants. "Considering the economic environment, we believe that we could eventually reduce our dependency on the government if we could use the revitalization scheme."

If approved, JAL would be the second company to receive emergency aid under a new government program designed to help companies ride out the global slump. The government approved aid for chip maker Elpida Memory Inc. in June.

Approval is not guaranteed because some government officials believe JAL's slump reflects structural problems in the company, not just the global economic downturn, Japan's largest newspaper, Yomiuri, said.

Maehara called the airline's restructuring plan insufficient.

"I must say it's not enough. I can't immediately say yes to the request," he said.

"We'd like to see JAL work to the bone and produce a thorough reconstruction plan that can get a passing mark from financial institutions," Maehara said.

JAL has reportedly been in talks with several major airlines including American Airlines Inc. and Delta Air Lines Inc. for possible financial and business support. Earlier this month, JAL said it would cut 6,800 jobs by March 2012.

It will also consider a breakup of the company as a solution to its financial problems, The Wall Street Journal reported Thursday, citing an unidentified source.

Maehara also met with leaders of the government-owned Development Bank of Japan, as well as Japan's top three commercial banks -- Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group and Mizuho Financial Group -- to discuss the possibility of funding the airline. JAL in June reached a 100 billion yen ($1.1 billion) loan deal with the Development Bank of Japan and the three commercial banks.

Nishimatsu provided details of the company's restructuring measures, including scrapping of unprofitable routes and capital tie-ups with foreign airlines, during his talks with Maehara. The president said JAL aimed to conclude talks with foreign carriers by mid-October, but did not identify them by name.

JAL, a former national carrier that was privatized in 1987, incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June.

JAL has forecast a net loss of 63 billion yen for the current fiscal year to March 2010.

Associated Press writer Shino Yuasa contributed to this report.

[wuchan]

Struggling Japan Airlines seeks public money
Japan Airlines president says money-losing carrier applying for public funds

* By Mari Yamaguchi, Associated Press Writer
* On Thursday September 24, 2009, 9:05 am EDT

TOKYO (AP) -- The president of Japan Airlines said Thursday the money-losing carrier is applying for public funds to help turn around the company after it was pummeled by the downturn in global air travel, but it quickly received a reluctant response from the transport minister.

JAL President Haruka Nishimatsu said he told Land and Transport Minister Seiji Maehara that the airline is seeking emergency government aid under an industrial revitalization law that is intended to help struggling companies.

"I have made the request from JAL" seeking approval for an injection of public funds, Nishimatsu told reporters after the talks. He refused to reveal how much money the airline wants. "Considering the economic environment, we believe that we could eventually reduce our dependency on the government if we could use the revitalization scheme."

If approved, JAL would be the second company to receive emergency aid under a new government program designed to help companies ride out the global slump. The government approved aid for chip maker Elpida Memory Inc. in June.

Approval is not guaranteed because some government officials believe JAL's slump reflects structural problems in the company, not just the global economic downturn, Japan's largest newspaper, Yomiuri, said.

Maehara called the airline's restructuring plan insufficient.

"I must say it's not enough. I can't immediately say yes to the request," he said.

"We'd like to see JAL work to the bone and produce a thorough reconstruction plan that can get a passing mark from financial institutions," Maehara said.

JAL has reportedly been in talks with several major airlines including American Airlines Inc. and Delta Air Lines Inc. for possible financial and business support. Earlier this month, JAL said it would cut 6,800 jobs by March 2012.

It will also consider a breakup of the company as a solution to its financial problems, The Wall Street Journal reported Thursday, citing an unidentified source.

Maehara also met with leaders of the government-owned Development Bank of Japan, as well as Japan's top three commercial banks -- Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group and Mizuho Financial Group -- to discuss the possibility of funding the airline. JAL in June reached a 100 billion yen ($1.1 billion) loan deal with the Development Bank of Japan and the three commercial banks.

Nishimatsu provided details of the company's restructuring measures, including scrapping of unprofitable routes and capital tie-ups with foreign airlines, during his talks with Maehara. The president said JAL aimed to conclude talks with foreign carriers by mid-October, but did not identify them by name.

JAL, a former national carrier that was privatized in 1987, incurred its biggest-ever quarterly net loss of 99 billion yen ($1 billion) in the three months to June.

JAL has forecast a net loss of 63 billion yen for the current fiscal year to March 2010.

Associated Press writer Shino Yuasa contributed to this report.

Still no plan to cut useless office staff?

[2triky]

Still no plan to cut useless office staff?

The article mentions jobs cuts to the tune of 6800 but it doesn't specify which areas those cuts will occur.

[Greji]

Nice:clap:
What happened to the other one?

"Burp"

[Bucky]

"Burp"

You're excused. Get any on ya?:nice:

[IkemenTommy]

Struggling Japan Airlines seeks public money
Japan Airlines president says money-losing carrier applying for public funds

I'm sure Obama would bail JAL out.

[2triky]

I'm sure Obama would bail JAL out.

No. It's not a bank.

[Bucky]

[cujojpn]

Redeye from Haneda


more. . .

Well son of a bitch. Only if coud happen sooner:

[Bucky]

JAL to Delta and American Airlines -- Never mind. . .

Japan Airlines is planning to temporarily shelve capital tieup talks with Delta Air Lines and American Airlines to focus on compiling its new turnaround plan, sources said Monday.

more. . .

[wuchan]

Japan's top airline decided to prioritize other restructuring measures like job cuts and scrapping unprofitable routes because a capital alliance would take longer to bear fruit

I wonder if the reason is that every interested company said "you have how many managers?". Cutting routes will help, I am sure of it, it is the best way to grow.

[Bucky]

New option

"There's increasing concern about the future of the company (JAL) and whether it's heading for a GM-style bankruptcy or not," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.

[Bucky]

Well Delta ain't waiting around for JAL. They announced, among other new routes a new daily Seattle<>Osaka route.