Tokyo District Court Approves JAL Restructuring Plan – JAL Posts Operating Profit of 17.8 Billion Yen for October
Japan Airlines Corporation (JL), Japan Airlines International Co., Ltd (JLI) and JAL Capital Co., Ltd (JLC) on November 30 received court approval for the rehabilitation plan from the Tokyo District Court. This will enable Japan Airlines International, Japan Airlines and JAL Capital to merge, with JLI as the surviving entity and thereafter the airline will reduce its capital by 100 percent. Upon receiving a capital injection of 350 billion yen from the Enterprise Turnaround Initiative Corporation of Japan (ETIC), Japan Airlines International will absorb and merge with its subsidiaries, JALways Co., Ltd (JO) and JAL Livre Co., Ltd who currently handles the financial divisions of the JAL Group. The respective effective dates are slated for December 1, 2010. JAL President Masaru Onishi pledged, â€œBy implementing the rehabilitation plan steadily, we shall strive to accomplish an early revitalization of our company.â€ Japan Airlines International aims to complete its rehabilitation proceedings by the end March 2011.
Asked to comment on the decision of implementing the dismissal for the purposes of restructuring, President Onishi said, â€œThere will be no change to the decision.â€ With respect to the â€œJapan Airlines Cabin Crew Unionâ€ who has established the right to strike this time, however, he said, â€œWe will negotiate the matter with the union in a serious manner.â€ JAL Chairman Kazuo Inamori also said, â€œAs we reduce the routes, we have to implement the downsizing of surplus manpower. We know that it is absolutely unbearable and we only beg our employees to understand that it is necessary to implement the downsizing.â€ Timing of the implementation, the President said, has not yet come, adding that the company will continue to solicit voluntary retirement also in the future. Meanwhile, Hideo Seto, Institutional Trustee Representative Trustee, ETIC Committee Chairman said he understands that even if the cabin crew union goes on strike, the flight operations will not be disrupted.
In the meantime, Sumio Mabuchi, Minister of Land, Infrastructure, Transport and Tourism issued a comment on the approval of the restructuring plan for Japan Airlines. In order that JAL is able to achieve early completion of the rehabilitation proceedings toward the end of the fiscal year 2010, he urged the airline to address, with utmost sincerity, respective business operations including the personnel downsizing specified in the approved rehabilitation plan and at the same time to meet the financial objectives without fail.
JAL October Results Show Black Ink for 10th Straight Month
Japan Airlines International posted operating revenues of 97.5 billion yen and operating profit of 17.8 billion yen for the financial results for the month of October (preliminary figures), ending in the black again for 10 consecutive months. The consolidated financial results of the JAL Group brought operating revenues of 118.1 billion yen and operating profit of 23.1 billion yen.
Source: Travel Vision
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