Asteroid Probe Hayabusa Is Coming Home With Rock Sample

 

Hayabusa, Japan's space probe that challenged to collect sample of rocks on an asteroid as an unprecedented attempt in human history, has reached to an trajectory to enter Earth's gravitational sphere, Japan Aerospace Exploration Agency (JAXA) announced on January 14.  With this, the chance for Hayabusa to return to Earth is almost definite as well as enhanced possibility to collect its capsule with collected rock sample.

 

Hayabusa was launched in May 2003, headed for asteroid Itokawa orbiting between Earth and Mars; it succeeded two times of landing and lift off from the asteroid. The probe encountered mechanical trouble two times and its scheduled return to Earth was prolonged three years.

 

On January 13, JAXA succeeded to move the probe to trajectory to pass inside Earth's gravitational sphere, or about 1.5 million kilometers from Earth. As of January 14, Hayabusa is about 59 million kilometers away from Earth. It will keep thrusting of its main engine, electric ion unit, by mid March to approach Earth more. Hayabusa will reach Earth in June.

JAL Chooses Delta

from Yomiuri Shimbun, January 16

Japan Airlines and Delta Airlines agreed to tie up  by joint operations on January 15.

JAL will sign an agreement with Delta after final authorization of its new management headed by Kazuo Inamori, new Chairman and CEO. JAL management will be reshuffled after it will file its bankruptcy for corporate rehabilitation.

Visiting Delta top management and JAL met at JAL headquarters on January 15 for final talks, reaching mutual agreement in working level.

Enterprise Turnaround Initiative Corporation (ETIC), in charge of JAL's rehabilitation, reportedly sees a tieup with Delta would improve operational efficiency of JAL's international flights, thus leading to earlier come back of JAL.

Accordingly JAL will change its alliance membership from One World to Sky Team led by Delta, wishing to complete its transition process by April 2011.

The two air lines will apply for anti-trust immunity to U.S. Department of Transportation by middle of February. If granted the immunity, they can have multiplied effect on their transpacific routes.

ETIC with a new management of JAL will continue to assess Delta's proposal for capital participation to JAL.

JAL's Rescue Plans Calls For 15,000 Employment Reduction in Three Years

Japan Airlines is expected to file its bankruptcy on 19 January for simultaneous start of its corporate rehabilitation by Enterprise Turnaround Initiative Corp. (ETIC) while expecting support by the government of Japan. The outline of its rescue plans was revealed yesterday: according to the plans, more than 15,000 employees, equivalent of 30 percent of the entire group would be slashed in three years. ETIC would confer with JAL and its main commercial banks for details of the plans.

ETIC seems to see JAL as having excess liability of over 800 billion yen and would ask JAL's creditors to write off 730 billion yen while ETIC itself would invest 300 billion yen to capitalize JAL so that the balance sheet would turn into positive.

Both Delta Airlines and American Airlines had express their intention of financial assistance to JAL for over $1 billion respectively, but ETIC assumes JAL should not accept American capitalization on the ground their capital investment might influence the course of JAL's rehabilitation. However JAL will choose its partner for joint operations under Open Skies between Japan and USA.

ETIC is now preparing to request Mr. Kazuo Inamori, 77, honorable chairman of Kyocera, Kyoto-based integrated manufacturer of electronics and industrial ceramics, to assume CEO after the process of legal liquidation starts in January.

ETIC is also studying if JAL stocks should be maintained listed in stock exchange; currently the fund is reportedly comparing two plans to maintain the listing after capital reduction by over 90% or delist JAL stocks after 100% capital reduction.

JAL's Recue Plans Getting a Shape

from Asahi Shimbun www.asahi.net, January 7

Japan Airlines to Receive Additional Y300 Billion In Return of 10,000 Persons Cut

The Enterprize Turnaround Initiative Corporation (ETIC), a public-private fund, came up with a new policy to deal with Japan Airlines that have requested ETIC for support: ETIC will agree to pay capitalization up to Y300 billion as well as hundreds of billion yen as bridge loan. ETIC, seeking for JAL's rehabilitation by legal liquidation of the airliner, is willing to put a big sum of money 'boldly enough' to avoid escalation of credit panic.ETIC, on the other hand, will ask JAL to reduce more of its employees than previous plans, possibly to a size of 10,000 in total.

ETIC, after coordination with financial institutions in advance, will formally announce its support to JAL simultaneously as JAL will file a petition and protection under Corporate Rehabilitation Law sometime in this month.

Currently JAL employs about 48,000. 'JAL Rescue Task Force,' appointed by Makoto Maehara, Minister of Land and Transport called for a reduction by 8,400 persons previously. A new plan adds more than 10,000 to be slashed.

The number of air routes to be terminated due to poor profitability would remain as many as 45 to 50, almost the same level JAL had studied internally with consideration of impact to relevant destinations.

Haruka Nishimiatsu will step down from presidency of JAL and ETIC intends to appoint a new CEO from outside the airliner. Most of current board members will be forced to quit and a new COO will be selected from present executives in age of 40s or 50s who are knowledgeable to JAL's operations.

JAL Prefers Delta As Partner

From Asahi Shimbun (www.asahi.com) January 3, 2010

Haruka Nishimatsu, President of Japan Airlines, expressed his view against a solution by legal liquidation as expected by Enterprise Turnaround Initiative Corporation of Japan (ETIC), an private-public fund, to which JAL has requested for support. He also told that it would be more advantageous for JAL to change its alliance membership with consideration of new marketing strategy in Asian market with potential growth; he told his preference of Delta Airlines than Aemrican Airlines as a partner while he emphasized he has no plans for JAL to withdraw from international service.

Nishimatsu told in his interview with Asahi Shimbun that legal liquidation may lead to loss of customers for JAL as it may give wrong impression as bankruptcy. Pointing out ongoing self initiative actions of JAL such as reduction of its corporate pension payment as well as other management changes, Nishimatsu stressed JAL is already implementing almost the same solutions as legal liquidation.

JAL, assumed in a state of asset deficiency, has a high chance of being forced to legal liquidation unless ETIC supports it, consequently the decision of ETIC can determine the course of JAL's salvation.

JAL's international operations, a chief factor of its deteriorated business performance, will be shrunk, according to Nishimatsu, by abolishing of air routes and downsizing of aircraft but he threw out a possibility for JAL to terminate its international service. He believed JAL should strengthen its operations in Asian market in the future to face competition with other carriers such as ANA.

Based on that, Nishimatsu showed his view that there will be more advantageous for JAL to join Sky Team alliance that major Asian airlines such as Korean Air are members already and more Asian carries would join. JAL is currently a member of One World alliance led by American Airlines. Delta Airlines has proposed JAL to change its alliance membership while Delta has a plan to
acquire capital in JAL.

Nishimatsu reiterated his intention to resign; it is expected he will express his resignation formally before or right after a decision to support JAL by ETIC in middle or end of January.

ANA's Windfall Expansion

ANA Takes All of Narita Increased Flights
December 25, 2009


Ministry of Land and Transport is going to give almost all of new capacity of flights for Japanese carriers at Narita to All Nippon Airways (ANA) when Narita will add 20,000 international flights annually in March 2010. This will be formally decided in next January. JAL, under corporate rehabilitation, apparently did not request its dividend as the ailing carrier is still in the process of air routes reduction. ANA will expand its international network especially in Asia Pacific region.

Currently ANA operates 26,000 flights annually at Narita while JAL has 47,000. In accordance with extension of one of runways due in March 2010, Narta's capacity to handle flights will increased to 220,000 flights from current 200 thousand.

The Ministry was accepting requests from both JAL and ANA but JAL did not and consequently ANA will be given almost of all increased capacity.

JAL, in its corporate rehabilitation plans, will reduce 21 air routes by the end of March 2012 and the carrier is more likely to fly less from Narita. ANA wants a fair distribution of newly available slots as a result of JAL withdrawal and it may lead to more flights of ANA.

Traditionally JAL had a leading edge to ANA in international flights. The gap may be shrunken as ANA will increase its international service at Narita as well at Haneda where airport expansion is also coming to its completion.

JAL's Former Presidents Are Requested to Pay Back Their Retirement Pays

from Yomiuri Online
19 December 2009

Japan Airlines, in the process of business rehabilitation under public control, are requesting a total of six former presidents to return a part of their rewards as they had received at their retirement.

The current management of the company, before starting formal process to slash corporate pension for retired employees, seemingly reached to a decision to clarify responsibility of past management decisions that consequently led to today's crisis. The company official acknowledged all of them agreed to return their rewards.

The six persons served as presidents of JAL as well as JAL International or JAL Japan, major subsidiary companies, and total amount of repayment may reach to millions of yen.

In the meantime, JAL decided to announce its revision plans of corporate pension scheme where retirees would receive average 30% less while current employees would receive 50% less than present level as they retire on December 18. The company will send letters to all of applicable retirees and employees at early next week to explain how much cut they will see in new plans and asking them to reply if they accept the plans by January 12.

JAL's preliminary survey showed 65% of retirees replied that they would accept the plans but the revision of corporate pension scheme calls for more than two thirds of all of relevant retirees and employees and the chance to adopt the new plans is not certain.

At briefing sessions held by JAL at various cities, there were many opinions from JAL retirees asking current president as well as its former management officers to take responsibility for past mismanagement of the company.

Japan-US Open Sky Agreed: 8 Haneda - US Flights Daily Possible

from Yomiuri Shimbun 12 December 2009

Washington D.C. - Bilateral aviation talks between governments of Japan and USA has reached agreement in the evening of 11th local time or afternoon of 12th by Japan standard time.

(Diagram showing Haneda's new expansion plan with a new runway and international terminal all built on the sea)

'Open Sky accord' will be formally signed by October 2010 and airlines of the both countries would be able to start new air routes freely in principle. This may affect the course of corporate rehabilitation of ailing Japan Airlines.

The two governments agreed comprehensively in the following points: 1) by signing open sky accord, they will apply ATI status, or exemption of US anti-trust law to airlines of the two countries 2) to start daily flights as many as eight in midnight or early morning time zones from/to Tokyo's Haneda Airport, closer to the central part of Tokyo, that will complete its expansion work in October 2010 and 3) to reduce slots held by US carriers at Narita from the current share of 28% to 25% in March 2010 and lower level subsequently.

Tokyo's two international airports, Haneda and Narita, will have no vacant slots even after signing of Open Sky and it is expected to see new airlines, including low cost carriers, start operation from/to Kasai or Chubu airports that have more slots to be used.

United Airlines with alliance with ANA and Delta as well as American Airlines, both in talks with capital/operational tie-up with Japan Airlines are reportedly in preparation of ATI application.

ANA's October Performance: Internatinal Flights Grew by 8.1% while Domestic Passengers Down 12.6%

from Reuter, 8 December　2009

All Nippon Airways (ANA) has released its group-wide performance in October showing a total of 364,726 passengers or 8.1% increase over the same period of the last year, makirng three-month consecutive growth over the last year. This good performance can be attributed to shorter distance tourism from Japan to such destinations as Thailand and Korea. On the other hand, its domestic operations in October showed 3.419 million passengers system wide or 12.6% fewer than the same month of the last year. ANA's domestic passengers decreased 25-month consecutively with its drop in October was larger than September due to increased cancelled flights by a typhoon.

Editor's note: ANA's stock price at Tokyo Stock Exchange was 251 yen per stock as of December 9.

Government mulls ¥700 billion in credit guarantees for JAL

from Japan Times internet edition 6 December 2009

The Japanese government is considering extending credit guarantees worth up to ¥700 billion on loans and investments from financial institutions to struggling Japan Airlines Corp. to shield the carrier from a possible cash shortage.

Standard & Poors Rates JAL as Lowest

From Mainichi Shimbun, 2 December

Standard & Poors lowered the rating of Japan Airlines from CC to SD, the lowest classification and meaning selective default on December 2.

The credit- rating company has explained that JAL had a case for default by the definition of the company on November 30.

JAL applied for corporate rehabilitation ADR (Alternative Dispute Resolution) to suspend its debt payment temporarily on November 13 until it gets a full support from Enerprise Turnaround Initiative Corporation of Japan. S&P will give a new rating to JAL upon analyzing the company's debt-paying ability.

Editor's note: JAL stock price was closed as 92 yen per share, no change from the previous day at Tokyo Stock Exchange on 3 December (Japan time).

Airports, Maveric Governor and Marine Corps

One of thorny issues between Japan and US is how to realize relocation of Futenma Air Station (MCAS FUTENMA) for Marine Corps air wings in Okinawa where the base is situated in the midst of highly dense population.

Even though the two governments reached in agreement back in 1995 to relocate the base to sea shore in the same Okinawa island, it is a fact that many local citizens can not accept the plan. Furthermore with the birth of new government by Democratic Party of Japan who opposed to the agreement concluded by their opposition party, in August, the previous agreement is now in a shaky position.

Now comes T. Hashimoto, a lawyer and popularly elected in 2008 as young governor of Osaka at age of 39. His prefecture of Osaka as well as the Kansai region at large has a big financial burden to maintain three airports (Kansai, Itami and new Kobe airports) with declining air travel market, especially by cancellation of JAL. Among the three airports, Kansai International has been criticized for construction of the second runway while many air routes, domestic and international, stopped their service. The old Itami airport (Osaka International, even though there is no real international flights from this inland airport these days) is still performing as busy domestic airport and Governor Hashimoto has his own solution to the three airports issue: abolish Itami and sell the premises as business part/ residential area. With the sales income, he advocates to construct a maglev train line to connect Osaka business district and Kansai airport which is more distant than Itami.

Then on November 30, Gov. Hashimoto told the press that he is 'willing to join discussion' to reduce military bases concentration to Okinawa by proposing to welcome base function to Kansai International.

His statement took attention of Foreign Minister Katsuya Okada today; he said he wants to listen to Gov. Hashimoto for his real intention.

The second runway （06L/24R）at Kansai is 4,000 meter-long and the airport, on reclaimed land off coast, is enough big to accommodate military installation.

However, there is no precedent case to keep civil and military air services in the same premises in these days in Japan and there is no response found from local community yet.

Today ( Dec. 1) Gov. Hashimoto also mentioned he is looking to see a possibility to use Kobe airport, another underachiever with too large scale air traffic forecast and also built on reclaimed land off Kobe port and city, for US military training purpose.

I wonder Hashimoto's statement might invoke a new discussion within Japan and a new solution might be introduced, if so it would be very interesting.......

(Photos. Kansai International Airport off Osaka coast, above and ,MSAS Futenma below)