Fry DEJAL(tm)

[2triky]

JAL to post $1 bln H1 operating loss: report

TOKYO (MarketWatch) -- Japan Airlines Corp. (TSE:JP:9205)
(OTHER:JALS.Y) incurred an operating loss of more than 90 billion yen ($1 billion) for the first half of the fiscal year ended Sept. 30, hit by a decline in passengers and per-customer sales amid the economic downturn, according to a report in Japanese business daily Nikkei on Wednesday. The ailing carrier, now seeking rehabilitation assistance from the government-backed Enterprise Turnaround Initiative Corp. of Japan, had reported an 86.1 billion yen operating loss for the April-June quarter. JAL likely sustained a net loss of around 130-140 billion yen in the April-September half, after its April-June net loss came to 99 billion yen, Nikkei said. In the July-September quarter, passengers on domestic flights fell 7% on the year to slightly more than 10 million, while those on international flights dipped roughly 3% to 3 million-plus, the report said. JAL is slated to announce its first-half earnings Friday.

[IkemenTommy]

Did anyone else noticed that JAL has stopped airing TV commercials these past few weeks? Their obvious intention was to cut costs. I am already seeing the beginning of their end.

[2triky]

Did anyone else noticed that JAL has stopped airing TV commercials these past few weeks? Their obvious intention was to cut costs. I am already seeing their beginning of the end.

I heard to save costs on materials they are switching to balsa wood planes.

[IkemenTommy]

I heard to save costs on materials they are switching to balsa wood planes.

[Tsuru]

Did anyone else noticed that JAL has stopped airing TV commercials these past few weeks? Their obvious intention was to cut costs. I am already seeing the beginning of their end.

I'm hearing the problem is more that even when the world ends in 2012, JAL will still be there with two cockroaches.

[Catoneinutica]

I'm hearing the problem is more that even when the world ends in 2012, JAL will still be there with two cockroaches.

Heh heh, I tell you what!

We were at the vet's a couple of Saturdays ago, and there was a poster of a dog's heart infested with heartworms. Thousands of the things. God, it was vile. Well, that's JAL, and the worms are amakudari dolts - JAL's been famous for decades for having a severe amakudari infestation.

[cujojpn]

Alright, I flew JAL and loved the service and the flight was great. Some things I did notice that would help them.

• Does JAL seriously need JAL silverware? I mean seriously my spoon, knife, and fork had JAL sketched in it.
• Does JAL seriously need JAL packaged chopsticks?
• Does JAL seriously need JAL cups? Whats wrong with dixi cups?
• Does JAL seriously need a JAL shop? I mean really? A shop on a plane.
• Does JAL seriously need JAL pillow cases?
• Does JAL seriously need JAL Blankets?
• does JAL seriously need to buy hundreds of newspapers for each flight?
• Does JAL seriously expect people to sign up for their flyer program on the flight?!

Those are just a few things I noticed.

[Tsuru]

Well their frequent flyer miles expire after two years so I guess they figured that one out...

[Kuang_Grade]

Alright, I flew JAL and loved the service and the flight was great. Some things I did notice that would help them.

• Does JAL seriously need JAL silverware? I mean seriously my spoon, knife, and fork had JAL sketched in it.
• Does JAL seriously need JAL packaged chopsticks?
• Does JAL seriously need JAL cups? Whats wrong with dixi cups?
• Does JAL seriously need a JAL shop? I mean really? A shop on a plane.
• Does JAL seriously need JAL pillow cases?
• Does JAL seriously need JAL Blankets?
• does JAL seriously need to buy hundreds of newspapers for each flight?
• Does JAL seriously expect people to sign up for their flyer program on the flight?!

Those are just a few things I noticed.

While some of this is prestige/branding, some of it is simple practical stuff, like making sure that their service contractors among their network don't walk off with their stuff or even worse take their stuff and sell it to other airlines. I've always thought that the on board shops were ridiculous but apparently they are extremely lucrative...nothing like having a bored captive audience, I guess.

[cujojpn]

While some of this is prestige/branding, some of it is simple practical stuff, like making sure that their service contractors among their network don't walk off with their stuff or even worse take their stuff and sell it to other airlines. I've always thought that the on board shops were ridiculous but apparently they are extremely lucrative...nothing like having a bored captive audience, I guess.

Some guy in the row in front of me actually bought a Tag Heuer watch. And had a pissy fit because the attendants we're not quick enough to presenting him with the watch.

[cujojpn]

Well Delta just took a hammer to JAL and is now lowballing JAL by 20% in most cases and now offering non-stop flights from Minneapolis to Tokyo.

A war has begun?

[2triky]

[2triky]

Delta, SkyTeam offer $1 billion to Japan Airlines
Delta, alliance partners offer $1 billion to lure Japan Airlines from American Airlines group

By Tomoko A. Hosaka, Associated Press Writer

TOKYO (AP) -- Delta Air Lines and its alliance partners said Wednesday they are making a billion dollar offer to lure loss-making Japan Airlines from its affiliation with American Airlines.

Delta is "by far the strongest partner for Japan Airlines," company president Edward Bastian told reporters in Tokyo, escalating the tug-of-war for a minority stake in Japan's flagship carrier.

The offer from Delta and the SkyTeam alliance includes a $500 million capital investment, $300 million in short-term revenue guarantees, and $200 million in asset-backed financing for the airline, known as JAL.

SkyTeam would also cover the entire cost for Japan's flagship carrier to transfer from American's oneworld alliance, estimated by Delta to total $20 million.

The stakes are high for both Delta and American, a unit of AMR Corp., as they seek to expand their international reach through global partnerships. JAL, Asia's biggest airline, is particularly attractive because of its extensive routes in Japan and China.

By partnering with JAL since the mid-1990s, American has been able to sell those routes to its own customers and share in the revenue. American and JAL offer reciprocal frequent-flier privileges to each other's passengers.

But JAL is struggling, and the Tokyo-based airline desperately needs an injection of capital and government help to avoid collapse.

It said last week it booked $1.5 billion in losses for the first half of the current fiscal year and was seeking government assistance in dealing with its creditors. Its interest-bearing debt totals nearly $10 billion.

Hit by a downturn in travel brought on by the tepid global economy and the swine flu outbreak, the company has been approved for a government-run turnaround. It is mulling large job cuts after already lowering its staff mainly through attrition as well as taking other measures such as cutting unprofitable routes.

Japan Airlines spokesman Sze Hunn Yap said the company is aware of Delta's offer but could not comment.

Bastian said JAL's relationship with the oneworld alliance has hurt the airline, with flights between North America and Japan decreasing in recent years.

In contrast, joining SkyTeam would offer JAL access to the 3.7 million Delta customers that fly every year from the U.S. to Japan. That represents a more than threefold increase from American's current passenger traffic out of the U.S. and $400 million in higher annual revenue, Bastian said.

"Continuing its current partnership threatens JAL's long-term international competitiveness," he said. "Only through a partnership with SkyTeam and Delta will JAL have the strength it needs to regain a position of international leadership in Japan, Asia and across the globe."

American Airlines and Texas-based private investment firm TPG Inc. issued a statement Wednesday reiterating their commitment to JAL, saying that sticking with oneworld would be its best path toward recovery and future growth.

American claims that JAL would suffer up to $500 million in lost revenue over two years if it defects to the SkyTeam alliance. It says it could win regulatory approval by mid-2010 for even closer ties -- antitrust immunity that would let American and JAL collaborate when setting prices and schedules on U.S.-Tokyo flights.

"American and its partner, TPG, stand ready to deliver significant value to JAL through a strengthened commercial relationship that will be part of a comprehensive recovery plan -- if invited, welcome and deemed appropriate by JAL and the Government of Japan," they said.

The Nikkei financial daily reported Wednesday that TPG is looking to invest $1.1 billion in JAL as part of a coordinated effort with American Airlines.

JAL president Haruka Nishimatsu has said he wants to make a decision on any capital tie-ups by the end of the year.

The SkyTeam alliance includes Delta, Air France KLM, Aeroflot, AeroMexico, Alitalia, China Southern Airlines, Czech Airlines and Korean Air.

Delta's offer came after a rough day for JAL shares in trading on the Tokyo Stock Exchange. Investors dumped the issue after comments by transport minister Seiji Maehara suggested that legal liquidation of the airline was still on the table.

JAL tumbled 3.9 percent to a record-low finish of 98 yen.

Takahiko Kishi, an analyst for Mizuho Investors Securities, said who actually invests in JAL may be less important than the restructuring it must undergo.

"Its financial health is so precarious," he said. "It has many issues it needs to address."

Delta and the SkyTeam's support stands firm even if JAL faces bankruptcy, Bastian said.

"Our offer is unconditional," he said.

[Christoff]

it would be awesome if JAL put some reasonably sized seat in their aircraft after the hostile takeover. What would not be cool would be charging me for sake during in flight service like the American carriers. And please dont replace the flight crew with fat middle aged hick form the armpit of America.

Guess we will have to wait and see.

[2triky]

it would be awesome if JAL put some reasonably sized seat in their aircraft after the hostile takeover. What would not be cool would be charging me for sake during in flight service like the American carriers. And please dont replace the flight crew with fat middle aged hick form the armpit of America.

Guess we will have to wait and see.

At least the argument could be made to keep the current slim flight crews in that it's necessary to save money on fuel by keeping weight down.

[Bucky]

JAL and Japan are so, well, yesterday. . .

"Losing (JAL) would be a significant setback, but it would not be the end of the world for American," says aviation consultant George Hamlin. While "Japan was the key market of the post World War II era, in relative terms it is declining," he says. "The Japanese economy has not grown very much in the last decade, while the Chinese economy is expanding rapidly."

[Greji]

it would be awesome if JAL put some reasonably sized seat in their aircraft after the hostile takeover.

JAL domestic flights used to have the "J" seat that you could get for an extra 1,000 and it was a good deal for us fat assed fgs (sorry Silly Girl. Didn't mean to get personal). They were pretty comfortable and up near the front. Kinduva poor man's first class and a helluva lot better than riding with your knees in your teeth for an hour or so.

[cujojpn]

When I rode the 777 back to America the seats were awesome. On the 747, lets not get started on that one--I was lucky I sat next to a child.

[Tsuru]

[Bucky]

This is about a month old, but it shows the lengths Delta is going:

Delta Air Lines has hired a consultant to lobby Japanese politicians, analysts and opinion leaders as it seeks a tie-up with Japan Airlines, Bloomberg reports, citing two people familiar with the situation. The world's largest carrier hired Fleishman Hillard this month (Oct.) to promote the airline to the Japanese public, Bloomberg reports.

[2triky]

The Japan Times

Government mulls 700 billion Yen in credit guarantees for JAL
Kyodo News

The government is considering extending credit guarantees worth up to \700 billion on loans and investments from financial institutions to struggling Japan Airlines Corp. to shield the carrier from a possible cash shortage, sources said Saturday.

The government is planning to include the measure in the extra budget for fiscal 2009, they said.

Specifically, it will likely guarantee 80 percent of loans to JAL, they added.

With the guarantees, the government will aim to ensure smooth financing for JAL from the state-owned Development Bank of Japan and major creditor banks, the sources said.

The government announced a rescue package for JAL in November and the airline clinched a deal with the DBJ for up to around \100 billion in loans.

But a state-backed corporate turnaround body from which JAL is seeking support for rehabilitation has yet to decide on its rescue package.

The planned credit guarantee scheme faces a rough ride, as strong criticism remains over the use of taxpayers' money to rescue the air carrier.

[Tsuru]

So that'll buy them two more weeks?

[Samurai_Jerk]

I was thinking that ANA should buy out JAL and change their name to ANAL.

[GuyJean]

I was thinking that ANA should buy out JAL and change their name to ANAL.

:thumbs: A certain Miss Analverse would be the perfect spokes-betty..

GJ

[FG Lurker]

to both the above posts.

You must spread some Reputation around before giving it to Samurai_Jerk again.
You must spread some Reputation around before giving it to GuyJean again.

[Tsuru]

[FG Lurker]

Gov't mulls plan to withdraw JAL international services
Mainichi Daily News, December 31, 2009

The government is considering transferring all international flights operated by the financially troubled Japan Airlines (JAL) to All Nippon Airways (ANA), government sources said.

The government apparently discussed whether the two major airlines should retain their international fights or ANA should be the sole carrier to fly on international routes at meetings on Wednesday, including a conference of Cabinet ministers involved in the JAL rehabilitation, according to the sources.

Even some JAL insiders have expressed support for the idea. "If we withdraw from international routes and concentrate on domestic flights, then we'll be an excellent company," says an executive.

However, the Land, Infrastructure, Transport and Tourism Ministry has voiced stiff opposition to the proposal, insisting that the two major airlines should have international flights.

(Full Story)

What the fuck!? Japan wants to attract 20mil tourists but is talking about killing off all international routes from one of their major airlines? Yeeeeeeeah, that seems like a smart idea.

[IkemenTommy]

Gov't mulls plan to withdraw JAL international services
Mainichi Daily News, December 31, 2009

What the fuck!? Japan wants to attract 20mil tourists but is talking about killing off all international routes from one of their major airlines? Yeeeeeeeah, that seems like a smart idea.

Real smart when that leaves ANA as the only domestic carrier flying international flights. I guess no one is worried about anti-trust or monopoly in Japan.

[FG Lurker]

Real smart when that leaves ANA as the only domestic carrier flying international flights. I guess no one is worried about anti-trust or monopoly in Japan.

Go DPJ! I wonder how many things they can fuck up in the next 100 days?

[2triky]