Japan Airlines : JL ! JAL !

The Development Bank of Japan is making the long-term loans available to try to mitigate the effects of the global financial crisis.
JAL spokesman Taro Namba said his firm was not in talks with authorities for loans. When asked if the airline was considering such loans, he said that nothing specific had been decided.

JAL to cut 6,800 jobs, plans partner by mid-October
By Greg Waldron

Japan Airlines is said to be aiming to cut up 6,800 jobs, and conclude a tie-up with a single partner by the middle of October.

The comments were reportedly made by JAL CEO Haruka Nishimatsu after a meeting with an independent panel that is discussing the carrier's long awaited restructuring.

Reports cite Nishimatu as saying the carrier was likely to pick Delta Air Lines or American Airlines as a partner, but only if Japan and the USA can reach an 'open skies' agreement.

The two countries are in talks to revise their decades-old air services agreement.

Media reports have named the two US majors, as well as Air France-KLM, as potential partners.

Nishimatsu is also reported as giving a figure of 6,800 job cuts and saying that restructuring will entail "drastic" changes to the carrier's route structure.

In early August JAL said that, in the three months ending 30 June, it posted a net loss of ¥99 billion ($1.1 billion) compared with a net loss of ¥3.4 billion in the corresponding period last year.

JAL's operating statistics showed total passenger numbers fell 15% year-on-year in the fiscal quarter, to 9.5 million from 11.2 million.

Japan Airlines gets its house in order
By Nicholas Ionides

Long-troubled Japan Airlines (JAL) has issued a more positive outlook for its future, upgrading profitability forecasts and raising more than $1 billion to get its financial house in order.

JAL has been seeking to improve its financial position for some time and has said it must do so ahead of the opening of a new runway in 2010 at Tokyo's congested Haneda airport. Asia's largest airline group is now presenting a picture of a restructuring that has been paying off, and in its "Medium Term Revival Plan" for fiscal 2008-2010 has ­increased profitability targets.

For the 2008 fiscal year to March 2009, it expects operating income of ¥30 billion ($293 million), rising to ¥75 billion in fiscal 2009 and to ¥96 billion in fiscal 2010. It previously forecast an ­operating profit of ¥88 billion in fiscal 2010. For the fiscal year to March 2008, JAL also upgraded its forecast, to an operating profit of ¥48 billion, up from an earlier target of ¥35 billion.

Chief executive Haruka Nishimatsu says that "we are starting over" in terms of having a more positive outlook of the future. He says there have been "early successes in restructuring" the business and results are coming in one year ahead of schedule in many areas.

To help cut debt and pay for new aircraft, JAL plans to raise more than ¥150 billion by issuing preferred shares to 14 companies. It also says it will continue with a fleet renewal and downsizing, further restructure its route network, shift more operations to lower-cost subsidiaries and increase the productivity of its workforce, which is also being reduced in size.

JAL CEO says has asked for public fund injection

TOKYO, Sept 24 (Reuters) - Japan Airlines Corp has asked the transport ministry for a public fund injection, CEO Haruka Nishimatsu told reporters after meeting the new transport minister on Thursday.
The struggling carrier also proposed a more drastic restructuring plan to the government, Nishimatsu said. (Reporting by Nobuhiro Kubo)

L'action JAL rebondit malgré le rejet du plan de restructuration

publié le 19/10/2009 à 14:12, Reuters



TOKYO, 19 octobre (Reuters) - L'action Japan Airlines a rebondit de près de 12% lundi à Tokyo, le marché ayant considéré que la chute de 25% du titre subie la semaine dernière était trop importante, même si les créanciers ont rejeté la dernière version du plan de restructuration.

Sous l'égide d'un panel d'experts désigné par le gouvernement, la compagnie aérienne a demandé aux banques l'annulation d'une dette de 300 milliards de yens (2,22 milliards d'euros) et un échange de titres de dette contre actions, avaient déclaré la semaine dernière des sources proches du dossier.

Les créanciers, dont la Banque de développement du Japon, détenue par l'Etat, ont rejeté le plan dimanche et ont demandé l'élaboration d'un nouveau plan qui réduise le montant des annulations de dette et apporte davantage de précisions sur les modalités de réduction des obligations liées aux retraites, a déclaré une source proche du dossier.

Au cours de la séance de lundi, l'action Japan Airlines (JAL) a gagné 11,88% à 113 yens alors que l'indice Nikkei a subi une baisse de 0,21%. L'action avait clôturé vendredi à un plus bas record de 101 yens.

"Les investisseurs rachètent l'action, qui a été survendue la semaine dernière", a estimé Takahiko Kishi, analyste chargé de JAL chez Mizuho Investors Securities.

Japan Airlines devrait toutefois subir une perte de près de 200 milliards de yens (1,48 milliard d'euros) sur l'exercice annuel en cours, rapporte lundi l'agence de presse Kyodo.

Ce montant est plus de trois fois supérieur à la précédente prévision de perte, selon l'agence japonaise. L'exercice de JAL s'achève fin mars 2010.

Selon Kyodo, le transporteur envisage de céder sa filiale JAL Hotels, qui gère 60 hôtels au Japon et à l'étranger, et de fermer 27 bureaux dans le monde au cours des deux ans à venir.

JAL, première compagnie aérienne asiatique en termes de chiffre d'affaires, file tout droit vers une deuxième perte annuelle consécutive pour l'exercice clos fin mars, plombée par une dette de 15 milliards de dollars (10,07 milliards

Japon: le gouvernement envisage de renflouer Japan Airlines

Le gouvernement japonais envisage concrètement de renflouer directement la première compagnie aérienne nippone, Japan Airlines (JAL), qui pâtit de la crise et de charges fixes élevées, ont affirmé mercredi plusieurs médias japonais.

Une importante augmentation de capital, à laquelle souscriraient les pouvoirs publics et des sociétés privées, est désormais à l'étude, assurent-ils.

La somme totale s'éleverait, selon eux, à 300 milliards de yens (2,2 milliards d'euros), soit le double de celle évoquée précédemment.

La part des uns et des autres n'est pas encore dévoilée mais compte-tenu de la capitalisation boursière de JAL et de la réticence des banques privées, l'Etat pourrait redevenir le premier actionnaire de l'ex-compagnie publique totalement privatisée en 1987.

Le ministre des Transports japonais, Seiji Maehara, a, à plusieurs reprises, indiqué que l'Etat se porterait au secours de JAL en cas de besoin.

"Le problème de JAL est celui de tout le gouvernement", avait-il réitéré mardi au terme d'un entretien avec le ministre des Finances dont l'accord est nécessaire pour soutenir la compagnie.

"J'ai compris que le temps pressait", a convenu ce dernier, Hirohisa Fujii.

JAL, qui totalise une dette de 1.518 milliard de yens (11,3 milliards d'euros), a un besoin urgent de trésorerie.

Son renflouement est perçu comme la clef de voûte d'un plan de restructuration en cours de préparation sous l'égide d'une équipe d'experts de la revitalisation des entreprises mandatée par le gouvernement.

Ces spécialistes du redressement auraient par ailleurs demandé aux banques d'effacer des dettes de JAL et d'accepter de convertir tout ou partie des sommes dues en actions, pour un montant total de 250 milliards de yens, selon des "familiers du dossier" cités par la presse.

Les banques créancières, auxquelles des requêtes du même ordre (pour un montant encore plus élevé) avaient déjà été faites, seraient toutefois encore insatisfaites par les nouvelles mesures présentées.

Même si la garantie de l'Etat et les moyens légaux étudiés pour alléger les frais de JAL facilitent les discussions, les banques publiques et privées semblent conditionner leur aide à la réduction de charges fixes (retraites, salaires, etc.) qui plombent les comptes de la compagnie et obèrent sa rentabilité.

JAL doit, selon les analystes, mettre en oeuvre de nouvelles mesures pour reconfigurer son mode de fonctionnement mis à mal par la chute de la demande de voyages.

Le groupe Japan Airlines, désormais quasiment sous tutelle, pourrait être poussé à céder des actifs supplémentaires, supprimer 14% ou plus de ses effectifs actuels (un peu plus de 48.930 employés) et abandonner des dizaines de liaisons.

Un ou plusieurs partenariats avec des compagnies étrangères sont également possibles.

La dette de JAL dépasserait ses actifs de 5,8 milliards d'euros

TOKYO (Reuters) - Les dettes de Japan Airlines (JAL) dépasseraient de 800 milliards de yens (5,81 milliards d'euros) le montant des actifs de la compagnie aérienne si cette dernière était liquidée, a rapporté une source proche du dossier.
Cette estimation, calculée par un groupe de travail, mis en place par le gouvernement, chargé de la restructuration de JAL, souligne l'ampleur des problèmes auxquels la compagnie aérienne nippone est confrontée.
Celle-ci tente d'obtenir le soutien de banques et de l'Etat pour éviter la faillite.
Le groupe de travail, qui est dirigé par des spécialistes du redressement d'entreprise et le ministre des Transports, Seiji Maehara, cherche à obtenir un prêt relais de près de 180 milliards de yens d'ici novembre pour éviter à JAL d'être à court de liquidités, a précisé la source.
Seiji Maehara a dit lors d'une conférence de presse qu'il avait rencontré le Premier Ministre Yukio Hatoyama et le ministre des Finances Hirohisa Fujii plus tôt vendredi afin de discuter du rôle de l'Etat pour soutenir JAL, ajoutant qu'aucune décision concrète n'avait été prise.
"Il y a différentes options concernant une aide publique destinée à JAL et nous allons établir ensemble ces options. Le Premier Ministre aura le dernier mot" a déclaré Seiji Maehara.
L'action JAL, qui a perdu plus de 40% de sa valeur cette année, a fini en baisse de 6,56% à 114 yens.
Mardi dernier, le panel d'experts désigné par le gouvernement japonais pour définir un plan de restructuration de Japan Airlines avait ramené son objectif d'annulation de dette de 300 milliards de yens à 250 milliards de yens, mais les créanciers ont rejeté cette proposition, selon deux sources.
Ces derniers avaient en effet l'impression de prendre à leur charge une part trop importante des difficultés de la compagnie aérienne.
Les créanciers, dont les trois premiers établissements de prêt du pays et la Banque de développement du Japon, détenue par l'Etat, sont réticents à apporter de nouvelles aides sans explication claire sur les modalités et le montant d'une éventuelle injection de fonds publics.
JAL, première compagnie aérienne asiatique en termes de chiffre d'affaires, file tout droit vers une deuxième perte annuelle consécutive pour l'exercice clos fin mars, plombée par une dette de 15 milliards de dollars (10,07 milliards d'euros) et une structure de coûts qui la rend moins efficace que sa concurrente All Nippon Airways.
La dernière version du plan de restructuration rejeté mardi prévoyait une perte opérationnelle de 200 milliards de yens sur l'exercice annuel en cours, contre 59 milliards de yens dans la précédente estimation.
"Nous n'avons rien décidé. Nous sommes en train de concevoir un plan de restructuration en fonction de différents points de vue", a déclaré un porte-parole de la compagnie.
Yoshifumi Takemoto, version française Alexandre Boksenbaum-Granier

JAL bail-out could be delayed to 2010
By Leithen Francis

Japan Airlines' (JAL) future is likely to remain uncertain for several more months while the Japanese Government's Enterprise Turnaround Initiative Corporation (ETIC) decides whether to help it.

"We would like to (help) but first we must do a survey" of JAL's business, and this means the airline will have to wait until 2010 before any financial assistance from ETIC is forthcoming, says an official at ETIC, who wishes to remain anonymous.

"There is also a possibility that we may say 'no' but this is unlikely," adds the official.

The official also confirms that ETIC is formulating a new financial turnaround plan, rather than relying on one that a government appointed task force has drawn up.

JAL applied on 29 October for financial assistance from ETIC after the airline's banks reportedly refused to waive some of its debts.

Japan's government established ETIC in October with a remit to help Japanese companies hampered by debt.

Pressure grows for JAL restructuring; AA to fight DL tie-up
Tuesday November 10, 2009
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Japan Airlines is expected to report a heavy loss Friday for its fiscal first half ended Sept. 30, increasing pressure on the carrier and the Japanese government to develop a restructuring plan to help assure investors and customers that the troubled company won't collapse.

"We will not create a situation in which airplanes do not fly," Transport Minister Seiji Maehara insisted to reporters, adding that short-term government financing and other rescue measures could be unveiled this week in advance of the earnings release. JAL's turnaround is expected to be overseen by the Enterprise Turnaround Initiative Corp. of Japan, a newly created quasi-government entity designed to help rescue struggling companies (ATWOnline, Oct. 30).

According to Japanese media reports, a key issue is the carrier's pension funding deficit, estimated to be more than ¥300 billion ($3.3 billion). Maehara has said he is pressing for legislation that would ease JAL's pension burden and creditors reportedly are willing to provide relief if the government can help solve the pension problem. Creditors last month balked at supplying around ¥300 billion in debt relief and equity swaps (ATWOnline, Oct. 20). Pension relief legislation could be introduced as soon as next week, according to multiple reports.

Meanwhile, JAL announced that President Haruka Nishimatsu and about 70 top executives will forego pay in December. Agence France Presse reported that the airline also is considering asking 17,000 nonexecutive employees to forego winter bonuses. Once a restructuring plan is developed, JAL likely will resume negotiations with Delta Air Lines and American Airlines about one of those carriers potentially taking a stake (ATWOnline, Oct. 6).

The Dallas Morning News yesterday published a transcript of comments made by AA Chairman and CEO Gerard Arpey at the airline's fall leadership conference late last month that made it clear it will fight hard to keep JAL in oneworld. SkyTeam Chairman Leo van Wijk said last week that his group is keen on recruiting JAL (ATWOnline, Nov. 6).

"JAL. . .is under quite a bit of financial stress right now and our friends in Atlanta are trying to capitalize on that by suggesting that JAL. . .should change alliances [to] SkyTeam," Arpey told AA executives. "We obviously think that would be a very bad idea for Japan Airlines. That certainly would be very bad for us." He added that "Delta is very dominant through [subsidiary] Northwest [Airlines] in Japan. . .If JAL were to change horses, we would certainly argue that they might not be allowed to even codeshare, let alone have immunity with the dominant carrier [at Tokyo] Narita."

In a statement released yesterday, Arpey said, "We are convinced that we can deliver the most meaningful alliance value to JAL by a wide margin. . . not to mention the financial costs JAL would incur if it changed alliances at such a critical phase in its restructuring."


by Aaron Karp

American Airlines says TPG could invest in struggling JAL

By Nathan Layne and Nobuhiro Kubo
TOKYO (Reuters) - Private equity firm TPG could partner with American Airlines on a minority investment in Japan Airlines (9205.T) to prevent its defection to a rival airline group, the chief financial officer of American parent AMR Corp (AMR.N) said.

The emergence of TPG as a potential investor comes as the loss-making Japan Airlines seeks its fourth state bailout since 2001, saddled with $15 billion in debt, a massive pension deficit and dozens of unprofitable routes.

The Japanese government pledged on Tuesday to enlist a state bank to offer bridge loans to prevent the airline from running short of cash and said it may introduce legislation to cut a pension shortfall that hit $3.7 billion in March.

Even as it struggles to avoid bankruptcy, JAL is being wooed separately by American Airlines and Delta Air Lines, which are keen to gain access to JAL's network in Asia and a stronger foothold in Japan. JAL is Asia's largest carrier by revenues.

AMR's Thomas Horton said TPG, which helped fund Continental Airlines emergence from bankruptcy in 1993 and backed a failed takeover attempt for Australia's Qantas Airways (QAN.AX) in 2007, has agreed to potentially invest in JAL as part of any deal with American Airlines.

"As appropriate and if it were welcomed by Japan Airlines and the government of Japan, TPG could also be part of a comprehensive recovery plan," Horton told reporters in Tokyo.

"They have been active in the airline space over the years."

A spokesman for TPG in Tokyo declined to comment.

American partners JAL in the Oneworld alliance, which pools frequent flyer miles and feeds passengers between members, and is keen to block it from joining Delta in the rival SkyTeam group.

American has argued that JAL and Delta would have difficulty clearing regulatory hurdles if they sought antitrust immunity for closer business ties because the alliance would give SkyTeam control of 60 percent of air traffic between Japan and the U.S.

American, which has hired Rothschild ROT.UL as an adviser on the deal, also estimates that defecting to SkyTeam could drain JAL of about $500 million in revenues during a transition period of 18-24 months.

A Delta spokeswoman in Tokyo declined to comment.

SIDE SHOW

In addition to a capital investment, American has been talking with JAL on forming a joint venture to cooperate more closely on scheduling, pricing and marketing. American estimates this could bring another $100 million in annual revenue to JAL.

Such close cooperation requires an "open skies" agreement between Japan and the United States. The two governments are in negotiations and are aiming for a deal this year.

The posturing by American and Delta remains a side show in the context of the much larger hurdles facing JAL. Any investment from the U.S. carriers would likely be a fraction of the 300 billion yen in capital a government-appointed task force estimated it needs to stage a sustained recovery.

JAL applied last month for a bailout from the Enterprise Turnaround Initiative Corporation of Japan, a state-backed body that is expected to take until January to study its assets and decide whether it is worthy of an injection of public funds.

Japan's recently elected government is under pressure to save JAL while contending with growing investor concern it faces a funding crunch to finance public debt expected to swell to 200 percent of GDP this year.

The government said on Tuesday the Development Bank of Japan (DBJ) would extend loans to keep it in operations until the ETIC can decide on support, part of a rescue package to ease market jitters ahead of JAL's first half earnings report on November 13.

The Nikkei business daily reported JAL was likely to post an operating loss of more than 90 billion yen, hurt by a decline in passengers and per-customer sales.

The government will also consider legislation to forcibly cut pension payouts, aiming to get around current laws that allow retirees to easily block such a move.

Shares of JAL, which have lost almost half their value this year, rose 4.8 percent after the government announced its support for the pension and bridge loan issues. The benchmark Nikkei Average .N225 ended flat.

The government did not announce the size of the bridge loan but two sources told Reuters on Wednesday the state-owned DBJ would offer a 100 billion yen ($1.1 billion) line of credit, while private banks would put up 25 billion yen.

Loans from units of Mitsubishi UFJ Financial Group (8306.T), Mizuho Financial Group (8411.T) and Sumitomo Mitsui Financial Group (8316.T) will be used to buy aircraft and will be guaranteed by another state-owned bank, the sources said.

The sources also said JAL would announce its application for a debt restructuring scheme on November 13 under which a third party would mediate between JAL and its creditors.

The scheme, called "Alternative Dispute Resolution," would trigger a suspension of loan payments. This would reduce the amount of funds JAL needs to secure in the near term.

JAL CEO Haruka Nishimatsu is likely to resign to take responsibility for the airline's woes, one source said.

A JAL spokesman said nothing has been decided on the size of the loans or whether it would apply for the ADR scheme.

La restructuration de JAL par la faillite n'est pas exclue

TOKYO (Reuters) - Le ministre japonais des Transports a refusé d'exclure une faillite de Japan Airlines, ce qui a fait dévisser le titre en Bourse alors même que des compagnies aériennes américaines sont sur les rangs pour investir dans leur concurrente nippone en difficulté.
...

Japan Airlines proposes slashing pension benefits more than 40%
Tuesday November 24, 2009 Japan Airlines President Haruka Nishimatsu yesterday told former employees that the company's pension benefits must be cut significantly to enable it to become sustainable long-term.

Troubled JAL is attempting to enter into a government-backed restructuring and is negotiating with Delta Air Lines and American Airlines about one of those carriers potentially taking a stake (ATWOnline, Nov. 19). Its pension funding deficit, estimated to be more than ¥300 billion ($3.37 billion), is making both its creditors and the Japanese government wary about providing relief.

Nishimatsu yesterday addressed a large audience of retired JAL workers, personally apologizing for the weak state of the airline and proposing that retirees' benefits be slashed by 30% while current employees' pension benefits would be cut by 50% for a total collective reduction exceeding 40%.

"With our current state, it will be difficult to turn around the company without public funds," he told the group, according to Kyodo News. "I first want to explain the fact that pension reforms will be necessary to reconstruct our company through obtaining public funds in a way that can gain public acceptance."

Following the address, he told reporters that he is seeking current and former workers' "understanding" that it is necessary for pension benefits to be "largely slashed by over 40%." He added, "Without revising the pension plan, we cannot move forward" on a restructuring program.

Nishimatsu told the former workers that he and his management team bore some responsibility for the airline's fiscal troubles and indicated he may resign once a viable restructuring plan is in place. "My biggest and last mission is to pass on the company. . .to the next generation," he said, according to Kyodo. "I will make a decision on my future in an appropriate manner and it will not take long."


by Aaron Karp

American and TPG offer to invest $1.1 billion in JAL
By Lori Ranson

Oneworld member American Airlines and its partner TPG along with unnamed members of the alliance have offered struggling Japan Airlines (JAL) a $1.1 billion investment package to rival financial support recently proffered by Delta Air Lines and members of SkyTeam.

Speaking during a briefing today in Tokyo American CFO Tom Horton argued the offer presented to JAL by American and TPG is superior to the competing offer as he reasons the Delta package is really only commitment of $500 million.

The $300 million short-term revenue guarantees Delta is offering JAL to switch from Oneworld to SkyTeam essentially "bring JAL back to zero", says Horton. "The offer of $200 million in debt financing, which must be repaid, isn't incremental value and in fact adds debt to a company that is already overburdened with debt."

Horton reiterated previous contentions by American that JAL would lose $500 million in revenue during the first two years if the carrier opts to abandon Oneworld for SkyTeam.

Factoring in $700 million in revenue JAL could garner over 10 years if American and JAL gain approval for antitrust immunity, Horton says the total incremental financial support from AA, oneworld and TPG is in excess of $1.8 billion.

Negotiators from Japan and the US are holding talks this month in Washington, DC, and Horton today expressed confidence the two parties would achieve an open skies agreement. Once that happens American and JAL can begin the process of seeking approval for immunity from US regulators. Horton warns that Star Alliance members United and Japan's All Nippon Airways (ANA) "will apply for and achieve antitrust immunity" once the open skies agreement is concluded.

He contends US regulators would not grant antitrust approval to JAL and Delta, leaving JAL weakened against "a very powerful combination of United and ANA".

Currently the three global alliances have about one-third market share from the US to Japan, says Horton, but if Delta is successful in its bid for JAL, SkyTeam's share would jump to 62%, resulting in SkyTeam and Star having a 93% market duopoly. He characterises that as "an anticompetitive result that the US government will not allow".

Horton says it is premature to describe how American, TPG and other Oneworld members are splitting the investment. But he emphasises American is prepared to make a substantial investment as part of the support the parties are offering to JAL.

Responding to a query regarding the level of support remaining the same if JAL enters into bankruptcy, Horton says the scenario envisioned by American and TPG is a plan by the government to restore JAL to financial health.

Horton also says he cannot supply a definitive time period of when the government and JAL will select either offer, but he warns time is of the essence as open skies talks progress and United and ANA prepare to apply for antitrust.

He explains American and JAL need to get their own antitrust proposals underway while JAL proceeds with the balance of its restructuring plan.

Japanese government reportedly to provide JAL with ¥700 billion loan guarantee
Tuesday December 8, 2009 The Japanese government reportedly is preparing to provide ¥700 billion ($7.74 billion) in credit guarantees to Japan Airlines as part of an "extra budget" that could be finalized this week for the country's fiscal year ending March 31.

Multiple press reports from Tokyo said the government wants to allay any doubts that JAL will continue to be able to operate as it goes through a restructuring expected to be overseen by the Enterprise Turnaround Initiative Corp. of Japan (ATWOnline, Nov. 25). The troubled airline also is negotiating with American Airlines and Delta Air Lines regarding one of those carriers taking a stake (ATWOnline, Dec. 4).

Japanese analysts said the loan guarantee would not be the solution to JAL's problems but would provide it with financial stability to weather its current crisis and complete a long-term restructuring.

Gerson Lehrman Group analyst Addison Schonland wrote in a research note that owing to the loan guarantee, "JAL breathes deeper and easier, for now." But he said the move "puts the airline firmly in the hands of the state. . .As the state now calls the shots, we are likely to see JAL dismembered because assets will be sold to defray the investments." He projected that Nippon Cargo Airlines would take over JAL's cargo business and an LCC could be "pulled out" of the carrier. "So the loan guarantee seems likely to set off a series of next steps that will impact the entire Japanese airline industry."

Most JAL retirees back pension cuts--company survey

* Nearly two-thirds of retirees willing to accept cuts
* JAL may gain agreement if some non-respondents won over
* Over 90 pct of employees understand need for pension cuts (Adds details)

TOKYO, Dec 15 (Reuters) - Japan Airlines Corp said on Tuesday 5,700 retirees were willing to accept proposed cuts to pension payouts, falling just short of the numbers the struggling airline needs to secure approval for reducing its pension burden.
JAL needs two thirds of 8,800 retirees and two thirds of 17,000 employees to agree to pension reductions -- a prerequisite for the debt-laden airline to receive a government bailout.
The carrier has warned it could face bankruptcy unless it addresses a pension shortfall of about 330 billion yen ($3.7 billion). [IDT199640]
It may gain the two thirds majority it needs if some of the 1,200 retirees who did not respond to its non-binding company survey end up agreeing to the cuts.
JAL also said that 90 percent of its employees had responded that they understood the need for pension cuts.
The airline will ask retirees and employees to give their formal consent to an average 40 percent cut to their pension payouts by the end of January.
Coming up with a solution to the shortfall is seen as necessary so that it can qualify for the support of a state-backed turnaround fund, which is now debating whether to bail out the airline with public funds.
If JAL and its employees and retirees cannot come to an agreement, the government has said it would consider crafting legislation to forcibly implement cuts.
In addition to a potential state bailout, the struggling airline is likely to get funds from foreign carriers eager to gain access to JAL's network to fast-growing Asian markets.
American Airlines has said it and other members of the Oneworld airline alliance along with private equity fund TPG are willing to invest $1.1 billion in JAL to prevent it defecting to Delta Air Lines (DAL.N) and the rival Skyteam group.
Delta has said that it and other SkyTeam members are ready to offer JAL a total financial aid package of about $1 billion, including a $500 million equity investment.

Transport Min: still mulling JAL fund guarantees

* Guarantees not likely in next fiscal year's budget-Maehara
* Still considering ways to provide guarantees-Maehara (Adds background, comments from Maehara)

TOKYO, Dec 25 (Reuters) - The government is still considering guaranteeing funding to Japan Airlines Corp, Transport Minister Seiji Maehara told a regular news conference on Friday.
Finance Minister Hirohisa Fujii said earlier this week that the government would not guarantee loans and other funding to JAL.
"Any guarantee is not likely to be included in the next fiscal year's budget, but we are still considering a way to provide it," Maehara said.
Since Fujii's remarks, the government has received inquiries from various industries over whether the government's policy towards JAL had changed, Maehara said.
"Our policy to back up JAL has not changed," Maehara said.

La faillite serait envisagée pour la restructuration de JAL

TOKYO (Reuters) - Un fonds public pourrait chercher à placer Japan Airlines (JAL) en faillite dans le cadre de la restructuration de la compagnie aérienne, apprend-on auprès de deux sources ayant connaissance du dossier.
Fin octobre, JAL avait indiqué avoir entamé des discussions préliminaires avec l'Enterprise Turnaround Initiative Corporation of Japan (ETIC), une entité créée cette année par Tokyo pour investir dans des entreprises viables mais en difficulté et racheter leurs dettes.
L'ETIC, qui peut mobiliser jusqu'à 1.600 milliards de yens (12 milliards d'euros) de financements garantis par l'Etat, décidera de soutenir ou non le transporteur aérien en difficulté dès le mois prochain.
Ce fonds public s'est entretenu avec les créanciers de JAL de la possibilité d'avoir recours à une procédure de faillite semblable à celle du Chapitre 11 aux Etats-Unis ainsi que l'octroi de nouveaux prêts et d'investissements, sans exclure pour autant une restructuration en dehors d'un passage devant un tribunal des faillites, ont indiqué les deux sources.
En plus de ses discussions actuelles avec les créanciers, l'ETIC a rencontré JAL le week-end dernier et a indiqué que la faillite était avant tout envisagée comme une option, ont précisé les deux sources.
Une mise en faillite pourrait compliquer les discussions en cours avec American Airlines et Delta Air Lines.
Les deux compagnies américaines s'intéressent toutes les deux à JAL car elles y voient un moyen d'accéder au réseau asiatique de la compagnie nippone et resserrer leurs alliances sur leurs lignes entre le Japon et les Etats-Unis.
"Si JAL déposait vraiment son bilan, cela provoquerait le chaos", prévient Kotaro Toriumi, analyste du secteur aérien et professeur à l'Université internationale de Josai.
"En ce moment je pense que les chances d'une faillite de JAL sont encore assez minces."
L'ETIC et JAL ont refusé de commenter ces informations.

JAL devrait bénéficier d'une ligne de crédit étendue

TOKYO (Reuters) - La Development Bank of Japan (DBJ) a accepté d'augmenter le montant des prêts non garantis à Japan Airlines, la compagnie aérienne toujours sous la menace d'une faillite, rapportent des médias japonais.
Les dirigeants de DBJ, une banque publique, le ministre des Transports Seiji Maehara et celui de la Stratégie nationale Naoto Kan se sont rencontrés jeudi pour convenir d'augmenter le montant des prêts accordés à JAL qui a déjà utilisé 55 milliards de yens (413,5 millions d'euros) sur les 100 milliards de yens de la ligne de crédit déjà octroyée par DBJ, rapporte l'agence Jiji.
Selon Kyodo, DBJ et Tokyo envisagent de doubler cette ligne pour la porter à 200 milliards de yens et la tranche additionnelle ne sera pas garantie par le gouvernement.
La décision finale sur le montant du prêt devrait être prise le 3 janvier après une discussion entre les ministres concernés par le sujet.
JAL n'était pas disponible pour commenter cette information, ce jeudi étant férié au Japon.

JAL May Drop International Routes

Dec 31, 2009



By Bradley Perrett


Japan Airlines may lose its entire international operation under a plan that would reduce the mighty but profitless airline, Asia’s largest, to a mere domestic carrier.

All Nippon Airways would take over all of Japan Airlines’ international services under the plan that the government is considering. Government and Japan Airlines’ sources apparently leaked the details to the Mainichi Shimbun newspaper.

The Ministry of Land, Infrastructure, Transport and Tourism is opposed to the proposal, but the Mainichi cites some Japan Airlines executives as saying it is not a bad idea.

The rules governing state-directed rescues are forcing consideration of such a radical move. A restructuring agency, the Enterprise Turnaround Initiative Corp. of Japan is working on a bailout plan for the struggling airline but can help companies only if they can be turned around within three years. The government is evidently concerned that a profit within three years would be unachievable if Japan Airlines kept its international network.

The loss of foreign services would greatly diminish the stakes in the ongoing tussle over Japan Airlines’ alliance membership. The giant carrier is a prized partner in Oneworld, whose leading member American Airlines has been trying to ward off attempts by Delta to lure Japan Airlines to Skyteam.

But if All Nippon gets the international operations, the big winners will be that carrier’s partners in the Star Alliance.

While restructuring Japan Airlines is a pressing issue, keeping it afloat by warding off a cash crunch is the immediate problem. To do that, the Development Bank of Japan has agreed to increase its unsecured lending to the company, reports Jiji news agency.

The state bank had previously agreed to extend ¥100 billion without security to the airline, which has taken up ¥55 billion. The increase followed a meeting between the bank and two ministers, including Transport Minister Seiji Maehara.

The restructuring agency has raised the possibility of bankruptcy and court-directed reorganization of Japan Airlines with creditors. That move has increased pressure on the company’s 8,800 retirees to accept a 30% cut in benefits.

It also raises the risk that shareholdings in the business would be wiped out. The stock fell to a record low this week.

Transport Min: no word from ANA on JAL int'l ops

TOKYO, Jan 5 (Reuters) - Transport Minister Seiji Maehara said he had not been sounded out by All Nippon Airways Co about taking over Japan Airlines Corp's international routes.
The Yomiuri newspaper reported last week that All Nippon Airways was considering taking over JAL's international routes as part of a restructuring of JAL as it seeks a state bailout.

JAL against bankruptcy, favours Delta offer-paper

TOKYO, Jan 3 (Reuters) - The president of Japan Airlines Corp said he is against a bankruptcy proceeding under a state restructuring plan and has no plans to completely withdraw the carrier from overseas flights, the Asahi Shimbun daily reported.
In an interview conducted on Friday and published on Sunday, the Asahi also said JAL President Haruka Nishimatsu preferred Delta Air Lines as the carrier's overseas partner to American Airlines.
A government-backed turnaround fund has told JAL's main creditors it favours a bankruptcy proceeding as part of a rescue package for Asia's largest carrier by revenue, sources with knowledge of the matter have told Reuters.
But Nishimatsu is against the plan, suggesting tough negotiations ahead between the airline and the Enterprise Turnaround Initiative Corp of Japan (ETIC), the Asahi said.
"The image (of bankruptcy) would affect us and we would lose customers," Nishimatsu was quoted as saying. "If we lose recognition from customers, restructuring would be difficult and this will trouble the ETIC too."
JAL's shares hit a record low last week on expectations that it was headed for bankruptcy.
The Asahi also said Nishimatsu was eyeing an alliance with Delta and the SkyTeam airline group, ending its current ties with American Airlines and the oneworld alliance.
The two U.S. carriers have made rival offers of financial aid, keen to gain a greater foothold in Japan and access to JAL's network to the rest of Asia.
"(Switching to SkyTeam) would involve a big process of changing systems, but (we need to consider) whether or not to value Asia," Nishimatsu told the Asahi. "In that sense, SkyTeam has many Asian carriers."
JAL has said it will make a decision on which overseas partner it will choose by early January.
Despite being burdened by unprofitable international routes, Nishimatsu ruled out a complete withdrawal from overseas flights, saying Asian routes offered business opportunities.
Several Japanese cabinet ministers have asked JAL to hand its international business over to rival carrier All Nippon Airways, but the transport minister is opposed to the idea, the Mainichi Shimbun reported last week.

JAL says has employee approval for pension cuts

TOKYO, Jan 4 (Reuters) - Japan Airlines Corp said more than two-thirds of its employees had agreed to proposed pension cuts, clearing one key hurdle in its push to reduce its pension shortfall, a prerequisite to getting a state bailout.
A JAL spokesman said that more than two-thirds of its 16,000 employees have notified the carrier they would agree to the cuts ahead of a deadline for them to answer on Jan. 12.
Roughly 3,000 of 9,000 retirees have agreed to the cuts, the spokesman said, declining to say what percentage of the remaining 6,000 had rejected the cuts and what percentage had not yet responded.
JAL applied in late October for a bailout from the Enterprise Turnaround Initiative Corp of Japan (ETIC), an organisation of turnaround specialists that can draw on state-guaranteed funds to offer aid to ailing firms.

Japan Airlines opte pour un partenariat avec Delta Air Lines et SkyTeam

TOKYO — La première compagnie aérienne japonaise, Japan Airlines (JAL), sommée de trouver rapidement un partenaire américain, a décidé de s'associer à Delta Air Lines et de rejoindre l'alliance SkyTeam au détriment d'American Airlines et Oneworld, a affirmé lundi un quotidien japonais.
"JAL et l'organisme public chargé de sa restructuration ont choisi lundi Delta Air Lines comme partenaire financier et opérationnel", a assuré le plus gros quotidien japonais, le Yomiuri Shimbun, dans son édition en ligne et nocturne.
"Dans le même temps, JAL prévoit de changer d'alliance, délaissant Oneworld au profit de SkyTeam", a poursuivi le journal sans mentionner ses sources.
Cette nouvelle information corrobore des rumeurs qui circulent depuis plusieurs jours dans les médias nippons.
Depuis des semaines, les deux compagnies américaines American Airlines et Delta Air Lines se disputent âprement les faveurs de JAL, en quasi faillite et sous tutelle publique, mais qui détient une place stratégique dans la région.
JAL a toutefois démenti lundi avoir déjà tranché en faveur de Delta.
"Nous n'avons rien annoncé de tel et à l'heure actuelle il ne s'agit pas de quelque chose de décidé", a-t-elle répliqué.
Le PDG de JAL, Haruka Nishimatsu, aurait toutefois récemment montré une évolution de son opinion, penchant pour l'offre de partenariat de Delta Air Lines et un changement d'alliance au profit de SkyTeam.
Cette option, initialement considérée comme difficile à mettre en oeuvre et coûteuse, serait à présent jugée plus propice à la remise sur pied rapide de JAL et au développement de ses activités en Asie, marché aérien promis à une forte croissance.
Delta Air Lines, membre du regroupement SkyTeam auquel appartient aussi Air France-KLM, a promis un investissement direct de quelque 500 millions de dollars dans JAL, et d'autres formes de soutien chiffrées à 502 millions de dollars, en cas de partenariat.
La compagnie américaine promet notamment de prendre en charge le coût du changement d'alliance et de garantir la conservation des points de fidélité (mileage) accumulés par les clients de JAL.
Un partenariat JAL/Delta signerait la fin d'une collaboration de quinze ans de la compagnie japonaise avec American Airlines, également membre de Oneworld.
JAL et les pouvoirs publics nippons auraient écarté l'offre d'American Airlines, n'étant pas très enclins à accueillir dans l'actionnariat de la première compagnie japonaise le fonds d'investissement américain TPG auquel s'est associée American Airlines.
"Les derniers ajustements sont en cours pour l'interruption des négociations avec American Ailines", a aussi affirmé lundi le Yomiuri.
La compagnie américaine a cependant assuré lundi que "les discussions pour un partenariat renforcé avec JAL se poursuivent encore".
Si d'aventure JAL quitte Oneworld, elle emportera avec elle les créneaux de vol qu'elle détient, ce qui se traduira pour Oneworld par une chute considérable de part de marché sur les lignes entre le Japon et les Etats-Unis, passant à 6% contre plus de 30% à l'heure actuelle.
Dans le même temps, SkyTeam verra la sienne s'élever en théorie à quelque 60%.
En couplant leurs forces et en profitant de l'accord de libéralisation "ciel ouvert" récemment conclu par les gouvernements japonais et américain, JAL et Delta devraient toutefois réduire le nombre de vols transpacifiques pour éviter les redondances et faire ainsi des économies.