JAL Looking better for DAL:

JAL against bankruptcy, favours Delta offer - report
Sun Jan 3, 2010 8:47am GMT

JAL against bankruptcy, favours Delta offer - report | Reuters

TOKYO (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 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.

JAL, hit by a global downturn in travel and a bloated cost base, has been seeking a bailout from the state-backed Enterprise Turnaround Initiative Corp of Japan (ETIC), which is expected to make a decision on whether to support the airline this month.

On Sunday, the government said the state-owned Development Bank of Japan would double its credit line for JAL to 200 billion yen (1.3 billion pounds), Kyodo news agency reported, as the airline struggles for survival.

The ETIC, a state-backed fund established to inject capital into and buy the debt of struggling but viable firms, has told JAL's main creditors it favours a bankruptcy proceeding as part of its rescue package, sources have told Reuters.

But Nishimatsu is against the plan, suggesting tough negotiations ahead between the airline and the ETIC, the Asahi reported.

"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 eying 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.

($1=93.00 Yen)

(Reporting by Chisa Fujioka; Editing by Jeremy Laurence)

Hey Mad Dog drivers I have a question....... What type of headsets do you guys wear? I was looking into getting a tbone to use in the 747 but since I am being displaced I want to be sure it will be a good choice for the 88.

Thanks

The 88 cockpit is very quiet. I used a Telex 750 for many years and was happy with it. I don't think a noise reduction headset is needed.

+1

a lot of marriages could be saved if men kept their wives mouths stuffed with pizza... until the law of unintended consequences kicks in.

Thanks..... The 747 cockpit is a little on the loud side and depending upon when I go to training I may make the plunge on a tbone I just wanted to be sure it would work (I believe our -9's don't use a boom mike). Guess I will wait and see what they post for expected training dates.

F4H;
I can see us doing a lot of their international if we finalize this deal. ANA would do some, but there is no way they would add seat for seat. That offers a yield opportunity many airlines have not seen in a long long time.

Quick question for all you New York commuters--- I have a buddy who is delayed in Europe right now, and will be getting back too late to commute home. He's looking for a hotel in the LGA area. Any suggestions?

GREAT VIDEO!!

During my roughly 20 year tenure at DAL I think Dave Bushey was the best Chief Pilot we've had, by far.

He genuinely cared for the pilot's well being and was a great pilot advocate in representing us to senior management.

Like WS he stood shoulder-to-shoulder in backing pilots who made the tough call, when it was warranted.

I have enormous respect for the man!

I have known WS since Auburn days in AFROTC. Outstanding example of a leader even back then.