JAL to file for bankruptcy?
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Would this pending insolvent be the same Japan Air Lines who have in recent days taken considerable time from the executives of (in particular) American Airlines and Delta Airlines, all running across to Tokyo to court JAL to a) oh do stay in the OneWorld Alliance, please, and b) oh do come and join us in the SkyTeam Alliance, please.
Are JAL fiddling while Rome burns ? Do the execs of these two USA majors have no idea of what is going on ?
Are JAL fiddling while Rome burns ? Do the execs of these two USA majors have no idea of what is going on ?
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It just popped up on Bloomberg (a news service)
*Japan Airlines decides to file for Bankruptcy, Hirano says
07:33 GMT
*Japan Airlines decides to file for Bankruptcy, Hirano says
07:33 GMT
Paxing All Over The World
The involvement of One World and SkyTeam is fascinating. I think this is the first time a major carrier in a global alliance has come up for grabs? I expect that we shall see OW and ST in hot pursuit.
As everyone knows, the airlines of the future will be these super carriers where the central operation is run by the alliance and the individual carriers are contract suppliers. The economies of scale are almost beyond words.
As everyone knows, the airlines of the future will be these super carriers where the central operation is run by the alliance and the individual carriers are contract suppliers. The economies of scale are almost beyond words.
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Japan Airlines (JAL) formally applied today for support for corporate restructuring. In response, the Enterprise Turnaround Initiative Corporation of Japan (ETIC), a government–backed corporate turnaround body entrusted with JAL's revival, confirmed today that they will provide support.
As a result, JAL will also be able to obtain sufficient financing from the Development Bank of Japan and ETIC to ensure the continuation of flight operations. Furthermore, customers' airline tickets and frequent flyer miles will be fully protected and JAL's frequent flyer program is expected to continue as normal.
Press release issued today as posted by JAL http://press.jal.co.jp/en/ .
As a result, JAL will also be able to obtain sufficient financing from the Development Bank of Japan and ETIC to ensure the continuation of flight operations. Furthermore, customers' airline tickets and frequent flyer miles will be fully protected and JAL's frequent flyer program is expected to continue as normal.
Press release issued today as posted by JAL http://press.jal.co.jp/en/ .
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I am very sorry to see what happening at JAL. Even though I was one of those "Gaijin" crew members that was given the boot recently, I have absolutely no animosity towards JAL. It kept me and my family in the "black" for nearly 15 years and most of the time I had a wonderful time flying with Japanese as well as fellow non-Japanese crew members.
JAL was privatized in 1987. But the state owned mentality remained within the company; that combined with the strong unions that often made some unreasonable demands, this outcome was inevitable.
When I joined JAL in mid nineties, it had already gone through a restructuring process after the bursting of the economic bubble few years earlier. But even then, it was shocking to see how the things were done, especially after coming from another major Asian airline which was always looking at the bottom line. I can only imagine what it was like before the restructuring.
A lot of money was spent on safety related things such as carrying lots of excess fuel for the flimsiest of reasons and keeping aircrafts in excellent shape. You rarely saw a deferred (carry over) defect on 20+ years old 747 classics that I flew.
It also spent millions unnecessarily, such as spending 30000 yen (~300$) each for two taxis for two crew members from the same flight who live on the same street, instead of asking them to share a ride. Senior crew got taxis to and from work at anytime and others between 10 pm – 7 am.
JAL had over 100 subsidiaries in mid 90s, from its Nikko hotel chain down to retail shops, language schools and laundries. Most of them were bleeding money, but used to shuffle incompetent managers around and keep them employed. I think JAL progressively got rid of those companies, way too late.
I wish all my friends at JAL well and sincerely hope it will come out of this crisis as a more efficient airline; and not go the way of other great airlines like PanAm and TWA.
JAL was privatized in 1987. But the state owned mentality remained within the company; that combined with the strong unions that often made some unreasonable demands, this outcome was inevitable.
When I joined JAL in mid nineties, it had already gone through a restructuring process after the bursting of the economic bubble few years earlier. But even then, it was shocking to see how the things were done, especially after coming from another major Asian airline which was always looking at the bottom line. I can only imagine what it was like before the restructuring.
A lot of money was spent on safety related things such as carrying lots of excess fuel for the flimsiest of reasons and keeping aircrafts in excellent shape. You rarely saw a deferred (carry over) defect on 20+ years old 747 classics that I flew.
It also spent millions unnecessarily, such as spending 30000 yen (~300$) each for two taxis for two crew members from the same flight who live on the same street, instead of asking them to share a ride. Senior crew got taxis to and from work at anytime and others between 10 pm – 7 am.
JAL had over 100 subsidiaries in mid 90s, from its Nikko hotel chain down to retail shops, language schools and laundries. Most of them were bleeding money, but used to shuffle incompetent managers around and keep them employed. I think JAL progressively got rid of those companies, way too late.
I wish all my friends at JAL well and sincerely hope it will come out of this crisis as a more efficient airline; and not go the way of other great airlines like PanAm and TWA.
Last edited by Skywards747; 19th Jan 2010 at 23:32.
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Govt bailout to keep broke JAL in the air
4:00 AM Thursday Jan 21, 2010
Expand Passengers of Japanese Airlines will retain their frequent flyer miles. Photo / AP
Japan Airlines says it can be reborn after filing for one of the country's biggest bankruptcies and entering a restructuring that will shrink Asia's top carrier and its presence around the world.
Staggering under a US$25.6 billion ($35 billion) debt mountain, the carrier applied for protection from creditors under the Corporate Rehabilitation Law - Japan's version of Chapter 11 - with the Tokyo District Court.
Japan's flagship airline will slash nearly 16,000 jobs, reduce pensions for retired staff, cut routes and shift to more fuel-efficient aircraft as part of its restructuring.
About $10 billion of government cash will keep JAL's planes in the air during the reorganisation. Lenders will forgive $8 billion in debt, and JAL shares will be removed from the Tokyo Stock Exchange on February 20, wiping out investors.
There was no word on the outcome of a fierce tug-of-war between Delta Air Lines and American Airlines for a slice of JAL's business. The airline's access to Asia is still a mouthwatering prize for foreign airlines.
A state-backed turnaround agency pledged 900 billion ($13.5 billion) in financial support for JAL - 600 billion in credit lines and a 300 billion cash infusion.
The bankruptcy is the fourth-largest in Japan, according to figures from Teikoku Databank, which tracks corporate failures. "This is not the end of JAL," transport minister Seiji Maehara told reporters.
"Today is the beginning of a process to keep JAL alive."JAL President Haruka Nishimatsu resigned, bowing deeply as he apologised for the company's troubles. Kazuo Inamori, a Buddhist monk and founder
of Kyocera Corporation and Japan's No. 2 mobile carrier KDDI, has been tapped as its next leader. "This is our last chance," Nishimatsu said. "I believe we can be reborn as an airline that can represent Japan again."
JAL said flights would continue uninterrupted and frequent flyers would not lose their miles. Tokyo asked foreign governments for co-operation to keep JAL flying around the world.The day's events culminate a process that began in October when JAL -
saddled with debts of 2.32 trillion - first turned to the Enterprise Turnaround Initiative Corporation of Japan for help.Under the prepackaged reorganisation, it will embark on a massive overhaul to shed the fat and inefficiency that hobbled its finances.
Maehara said the turnaround would involve 15,661 job cuts - a third of JAL's payroll - by March 2013.
The carrier will retire all 37 of its Boeing 747 jumbo aircraft and 16 MD-90s, which will be replaced by 50 small and regional jets.
JAL shares, which have lost more than 90 per cent of their value over the past week, tumbled another 40 per cent on Tuesday to 3 before finishing flat at 5 yen.
The company is now essentially worthless, with a market capitalisation of about 13.7 billion - the price of one Boeing 787 jet.
HARD LANDING
* JAL was founded in 1951 and came to symbolise Japan's rapid economic growth
* When Japan's 1980s property and stock bubble burst, risky investments in foreign resorts hit profits
* Traffic has slowed recently amid the global economic downturn and swine flu fears Competition from rival ANA and a safety lapses have also hurt.
- AP
4:00 AM Thursday Jan 21, 2010
Expand Passengers of Japanese Airlines will retain their frequent flyer miles. Photo / AP Japan Airlines says it can be reborn after filing for one of the country's biggest bankruptcies and entering a restructuring that will shrink Asia's top carrier and its presence around the world.
Staggering under a US$25.6 billion ($35 billion) debt mountain, the carrier applied for protection from creditors under the Corporate Rehabilitation Law - Japan's version of Chapter 11 - with the Tokyo District Court.
Japan's flagship airline will slash nearly 16,000 jobs, reduce pensions for retired staff, cut routes and shift to more fuel-efficient aircraft as part of its restructuring.
About $10 billion of government cash will keep JAL's planes in the air during the reorganisation. Lenders will forgive $8 billion in debt, and JAL shares will be removed from the Tokyo Stock Exchange on February 20, wiping out investors.
There was no word on the outcome of a fierce tug-of-war between Delta Air Lines and American Airlines for a slice of JAL's business. The airline's access to Asia is still a mouthwatering prize for foreign airlines.
A state-backed turnaround agency pledged 900 billion ($13.5 billion) in financial support for JAL - 600 billion in credit lines and a 300 billion cash infusion.
The bankruptcy is the fourth-largest in Japan, according to figures from Teikoku Databank, which tracks corporate failures. "This is not the end of JAL," transport minister Seiji Maehara told reporters.
"Today is the beginning of a process to keep JAL alive."JAL President Haruka Nishimatsu resigned, bowing deeply as he apologised for the company's troubles. Kazuo Inamori, a Buddhist monk and founder
of Kyocera Corporation and Japan's No. 2 mobile carrier KDDI, has been tapped as its next leader. "This is our last chance," Nishimatsu said. "I believe we can be reborn as an airline that can represent Japan again."
JAL said flights would continue uninterrupted and frequent flyers would not lose their miles. Tokyo asked foreign governments for co-operation to keep JAL flying around the world.The day's events culminate a process that began in October when JAL -
saddled with debts of 2.32 trillion - first turned to the Enterprise Turnaround Initiative Corporation of Japan for help.Under the prepackaged reorganisation, it will embark on a massive overhaul to shed the fat and inefficiency that hobbled its finances.
Maehara said the turnaround would involve 15,661 job cuts - a third of JAL's payroll - by March 2013.
The carrier will retire all 37 of its Boeing 747 jumbo aircraft and 16 MD-90s, which will be replaced by 50 small and regional jets.
JAL shares, which have lost more than 90 per cent of their value over the past week, tumbled another 40 per cent on Tuesday to 3 before finishing flat at 5 yen.
The company is now essentially worthless, with a market capitalisation of about 13.7 billion - the price of one Boeing 787 jet.
HARD LANDING
* JAL was founded in 1951 and came to symbolise Japan's rapid economic growth
* When Japan's 1980s property and stock bubble burst, risky investments in foreign resorts hit profits
* Traffic has slowed recently amid the global economic downturn and swine flu fears Competition from rival ANA and a safety lapses have also hurt.
- AP
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From Hong Kong news agency
JAL to axe 15,000 jobs
22-01-2010
Japan Airlines has announced that it's to shed 15,000 jobs -- almost a third of its workforce. The company, once Asia's largest carrier, applied for bankruptcy protection on Tuesday. Its share value had shrunk by then to less than the price of a single plane. The airline's demise coincides with a severe contraction in the Japanese economy.
22-01-2010
Japan Airlines has announced that it's to shed 15,000 jobs -- almost a third of its workforce. The company, once Asia's largest carrier, applied for bankruptcy protection on Tuesday. Its share value had shrunk by then to less than the price of a single plane. The airline's demise coincides with a severe contraction in the Japanese economy.
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JAL expats
Im at J-AIR the 170 operation. We are told all will be okay, so we are told.... Right now we are about 19 expats here, and then there are expats i think at JAX but thats all that i am aware of.
