/JAL To Get New Capital
From Jiji Press and Yomiuri Shimbun, 26 February 2011
Japan Airlines, under corporate rehabilitation, will be highly likely to record consolidated profit of JPY170 billion (US$2 billion) at the end of March 2011. This amount is 2.6 times larger than the originally planned profit by the corporate rehabilitation plans as submitted to the Tokyo District Court at the end of last August, attributed to the company’s overall cost reduction efforts. The forecasted amount of profit is the record high in the history of JAL The higher cash flow will help the airliner to strengthen its financial foundation, the company’s weak point over the years.
JAL will welcome additional financial help from eight companies as capital investment of JPY 20 billion at maximum. New investors will include Tokio Marine and JTB, travel agency among other six companies of Daiwa Securities, Kyocera, Mitsui Sumitomo Marine and Fire, Sompo Japan, MS & AD Insurance and Hankyu Travel. JAL first wanted a larger capital investment as much as 50 billion yen; as the result of JAL’s overall management performance will lower the amount to 20 billion level.Apart from that, JAL expects a new financial loan equivalent of JPY280 billion from major dealing five banks led by Development Bank of Japan as well as new members such as Mitsubishi UFJ Trust and Banking, Aozora, Tokyo Star, Chiba Banks as well as Okinawa Development Finance Corporation.
