from Sankei Shimbun August 30,2010 and others
Japan Airlines will submit its rehabilitation plans to the Tokyo District Court on August 31 upon approval of the cabinet ministers. On the same day at evening, Chairman Mr. Kazuo Inamori will meet the press conference with Ken Ohnishi, President with officials of Enterprise Turnaround Initiative Corporation of Japan (ETIC), serving as JAL’s receiver.
The plans call for 1) write-off of its debt of 521.5 billion yen (about $6 billion) by syndicate banks 2) new investment by ETIC 3) slashing of employees up to about 16,000 at group wide 4) abolish 45 routes, domesitc and international, by March 2011.
JAL has announced its plan to merger JALWAYS, its subsidiary operator as well as its accounting firm in this year.
JAL wishes to see its stocks relisted at Tokyo Stock Exchange by the end of 2012 after a further restructuring and increased corporate values. The airline hopes to repay 350 billion yen of public fund by selling its stocks. The district court will decide on the approval to the plans by the end of November.
Accotrding to JAL’s plans, the airline is considering to launch its own LCC subsidiary. Its rival ANA has issued its plans to start low cost carrier earlier in August.
