Japan Transport Min: To Leave JAL Revamp Plan To Task Force
September 28 2009 - 11:06PM
Dow Jones News
Japan's transport minister said Tuesday he will delegate
responsibility for drawing up a restructuring plan for Japan
Airlines Corp. (9205.TO) to a newly established task force for the
time being.
"I want to monitor how the task force will work" on the plan,
Seiji Maehara, Japan's Minister of Land, Infrastructure, Transport
and Tourism, said at a press conference.
Last Friday, the government set up a new five-member panel to
advise on the Japanese airline's revival. As a result, the deadline
for finalizing JAL's restructuring plan - determined by a previous
panel under Japan's former government - was put off by two months
until the end of November.
The task force will outline a draft of the restructuring plan by
the end of October, Maehara said.
The new framework came after the transport minister said last
Thursday that he was "skeptical about the feasibility of JAL's
rehabilitation plan," following a meeting earlier that day with JAL
Chief Executive Haruka Nishimatsu who asked for public funds to
boost capital at the ailing carrier.
Damaged by a sharp drop in global travel, the airline reported
its largest-ever quarterly net loss of Y99 billion in the three
months to June. For this business year through March, it is
predicting a net loss of Y63 billion.
Among its own revival initiatives, the Tokyo-based company began
separate tie-up talks with Delta Air Lines Inc. and American
Airlines parent AMR Corp., with the U.S. firms potentially
investing in their Japanese peer to enhance their services in
Asia.
-By Yoshio Takahashi, Dow Jones Newswires; 813-6895-7561;
yoshio.takahashi@dowjones.com