Thread: Any "Latest & Greatest" about Delta?

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forgot to bid , 09-13-2009 05:13 PM
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But here is something... note the date... I guess we should say good morning to our NRT folks.

TOKYO, Sept 14 (Reuters) - Japan Airlines (JAL) (9205.T) (9205.T) shares jumped on Monday following news that the struggling airline was in talks on investment by American Airlines and Delta Airlines (DAL.N).
The shares opened up 9.2 percent before trimming gains to 174 yen a gain of 6.7 percent, outperforming a 1.6 percent fall in the benchmark Nikkei average.

"JAL shares will stay high today, as uncertainties about its financial conditions are eased by the report of investment," said Kazuhiro Takahashi, manager of equities at Daiwa Securities SMBC.

"However, whether JAL can turn around its business is another story. A focus is on details of the possible deals and how JAL capitalises on them to reform its management."

JAL, Asia's largest airline by revenues, lost about $1 billion last quarter and has been seeking investors to prop up its finances for a state-supervised overhaul expected to include job cuts, a reduction in routes and asset sales.

American Airlines, a unit of AMR Corp (AMR.N), has been in talks to invest in JAL and form a joint venture to expand their business partnership, a source with direct knowledge of the talks told Reuters on Sunday. [ID:nT87438]

JAL is also weighing an offer from Delta, a source told Reuters last week. According to Japanese media, Delta would inject up to 50 billion yen ($553.8 million) into JAL and wants a tie-up that would include code-sharing on international flights. [ID:nN11471217] [ID:nT253155]

JAL is a member of the Oneworld airline alliance with American Airlines while Delta is a member of the rival SkyTeam group. ($1=90.28 Yen) (Reporting by Yumiko Ni****ani; Editing by Rodney Joyce