Delta In Talks To Buy Big JAL Stake - Report
September 11, 2009
Delta Air Lines is in talks to invest in struggling Japan Airlines (JAL) and become its biggest shareholder, Japanese media said Friday.
Public broadcaster NHK and Kyodo news said Delta was in talks to invest several tens of billions of yen in JAL, Asia's largest airline by revenue, as part of a business alliance.
"I can't verify what has been reported by NHK and can't comment further at this time," said a JAL spokeswoman.
JAL is headed for its second straight loss this business year and is restructuring under state supervision after receiving a JPY100 billion credit facility backed by the government.
JAL and Delta are also talking about code-sharing on international flights, Kyodo and NHK said.
JAL reported a JPY50.9 billion operating loss for the year to March 2009 and has forecast a JPY59 billion loss for the current year, as it struggles to control costs and suffers along with other airlines due to a slump in global travel.
(Reuters)