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JAL to cut 15,600 jobs and reject all bids

I can't believe they aren't taking up AMR or DAL. If 1.4 billion won't get you going :eek:

Quote:

TOKYO (AP) -- Troubled Japan Airlines Corp. is set to cut about 15,600 jobs, a third of its work force, and reject billion-dollar cash offers from Delta and American Airlines, as it files for bankruptcy and embarks on a government-led turnaround, reports said Monday.

Under a rehabilitation plan now being hammered out by a state-backed corporate turnaround body, JAL would make the job cuts during the three fiscal years through March 2013, Kyodo News reported. The plan would include a fresh investment of 300 billion yen ($3.3 billion) by the body and wipe much of its soaring debts under bankruptcy protection.

JAL's shares, which have plunged in recent weeks, are to be delisted, the Asahi newspaper reported.

Officials at JAL, the transport ministry and the turnaround body could not be reached for comment Monday, a national holiday in Japan. The stock market was also closed.

The state-backed Enterprise Turnaround Initiative Corp. of Japan will decline cash offers from Delta and American Airlines as it fears giving foreign carriers a foreign stake in the company would complicate the restructuring, according to media reports.

Instead, the airline will pursue only greater cooperation with either Delta or American, the business daily Nikkei said Sunday. The turnaround body will pick one of the U.S. carriers as JAL's partner after February, it said.

Delta and its SkyTeam partners have offered $1 billion to JAL, while American, which partners with JAL in the oneworld alliance, has countered with a $1.4 billion.

JAL could file for bankruptcy as early as Jan. 19, with company president Haruka Nishimatsu resigning soon after, reports said.

The Nikkei said Sunday the government and the turnaround body have asked Kazuo Inamori, founder of electronic component maker Kyocera Corp., to head JAL during the restructuring process. Inamori is to reply to the government by the end of the week.

Shares in JAL have tumbled and were off nearly 12 percent Friday at 67 yen. Friday's finish marked a staggering fall from JAL's closing price of 213 yen at the beginning of 2009.

I believe its called “kamikaze.”

Quote:

Originally Posted by ToiletDuck (Post 741808)

I can't believe they aren't taking up AMR or DAL. If 1.4 billion won't get you going :eek:

The only thing that I really don't believe is how long it took for them to reject the bids, they didn't want to be rude I guess:rolleyes:

They will take the $$$. It will be on there time.

Nobody from our group can come up with a definitive answer on whether or not losing JAL would actually be good or bad for us.

Looking at it even from a layman's prospective you can garner two totally different pictures.

Either it's very good, because we are not flushing $1B+ and anchoring ourselves to a perpetual money loser. Also, there is a good chance JAL will take more of our flying in some sort of code share or JBV type of deal.

Or it can be looked at as very bad as we lose our only partner in Asia, and lose a significant chunk of revenue feed and flying.

Personally, I am not convinced this is the end of the world for us, as I think there is some sort of plan B for us.

You are correct. IMHO Delta at least thinks it has more at risk as it tries to preserve what it thought was a good deal with NWA's Fith Freedom rights.

Back before the DAL / NWA merger, I tried to explain to people here why Narita and 5th Freedom was not the golden egg that some made that operation out to be. Now, at a year after the DAL/NWA merger we have shut down the Cargo operation and are unsuccessfully trying to throw ~$500,000,000 into holding on to a concessionary position in the Japanese market.

The 787 and changing economic patterns will drive changing traffic & revenue flows.

Quote:

Originally Posted by Rider850 (Post 741839)

They will take the $$$. It will be on there time.

It took them 5,000 years of evolutionary thinking to reach that decision, they will take the money no doubt, just not "Gaijin" money;)

They have lost face enough over the bankruptcy. It would be shameful in their eyes to take round eye money.....

It is an Asian thing.

It is and they will sell their jets to the airline they want to work with.