Delta Ties the Knot with JAL

[ACL65PILOT]

UAL is not being parted out . Care to make a wager on that? I know a good escrow agent.

Hope you are correct.

 

[Dumb Pilot]

• New CEO named for Japan Airlines

Tokyo, JAPAN - Japanese tycoon Kazuo Inamori was named as the next chief executive officer of Japan Airlines Corp. after the carrier completed a 90 percent, two-day stock plunge on speculation it will file for bankruptcy.

“I’m a total novice when it comes to the transportation industry,” Inamori, the 77-year-old founder of electronics company Kyocera Corp., told reporters yesterday in Tokyo. “I’ve decided to accept because the government and the turnaround body want to prevent JAL’s failure by any means.”

Inamori, Japan’s 28th richest man according to Forbes and a Buddhist priest, takes on the challenge of overhauling a carrier that has posted three losses in four years on slumping travel demand.

 

[AnimalTale]

• New CEO named for Japan Airlines

Tokyo, JAPAN
“I’m a total novice when it comes to the transportation industry,” Inamori, the 77-year-old founder of electronics company Kyocera Corp., told reporters yesterday in Tokyo. “I’ve decided to accept because the government and the turnaround body want to prevent JAL’s failure by any means.”

I think NWA helped start up JAL in the early days?? If I am correct, then there is no surprise with JAL's choice.

CYA

 

[Dumb Pilot]

I think NWA helped start up JAL in the early days?? If I am correct, then there is no surprise with JAL's choice.

CYA

The choice of Inamori-san to head the JAL group is a sign that the government want to finally conduct JAL as a business and not only as source of employment and a flag carrier. I think that this management group is making decisions based on a sound business recovery plan and not on sentiments of yesteryear

 

[RJAA]

Inamori is 77. Good luck with that.

 

[RJAA]

Duplicate

 

[General Lee]

Factbox: JAL restructuring plan under state-backed fund

TOKYO
Tue Jan 19, 2010 5:05am EST
TOKYO (Reuters) - Japan Airlines Corp has filed for bankruptcy and will be restructured with the help of a state-backed turnaround fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC).

Following are the key figures and measures in the fund's revival plan. This includes information from the ETIC's statement and a document provided by the government.

FINANCIAL AND OPERATIONAL POSITION

The ETIC said JAL companies are carrying about 780 billion yen ($8.6 billion) of interest-bearing debt, excessive relative to its earnings capacity. It said the carrier is operating too many routes and aircraft, and that management has been unable to take decisive action, resulting in excessive fixed costs.

FINANCIAL AID

The ETIC said it and the state-owned Development Bank of Japan would provide JAL with 600 billion yen in debtor-in-possession financing to ensure it can maintain operations. Following its decision to acquire JAL debt, it would inject 300 billion yen of capital into JAL.

The ETIC said JAL companies are expected to receive 730 billion yen worth of debt forgiveness.

JOB, ROUTE CUTS

JAL will cut its group workforce to 36,201 by fiscal year 2012 from 51,862 in fiscal year 2009.

The carrier will reduce the number of domestic routes to 119 from 136 and the number of international routes to 79 from 93.

FLEET STRATEGY

JAL will retire aging and less fuel-efficient aircraft and introduce smaller and more advanced planes.

It said it would retire all 37 of its Boeing 747-400 planes and all 16 of its McDonnell Douglas MD-90 aircraft. At the same time JAL will introduce 50 small and regional jets.

SHAREHOLDERS

The ETIC said it intends to implement measures to hold shareholders accountable, including a 100 percent reduction of capital. It said the final decision on that matter, however, would be made in a forthcoming revival plan.

The Tokyo Stock Exchange said it would delist JAL's shares on February 20.

PROFIT, SALES TARGETS

JAL's sales are expected to come to 1.36 trillion yen in the year to March 2013, a drop of 30 percent against the 1.95 trillion yen booked in the year ended March 2009.

Its operating profit is expected to recover to 115.7 billion yen in the year to March 2013 from an expected loss of 265 billion yen in the current business year to March 2010.




Interesting....??? How about they trade us the 37 744s for Comair? Deal.


Bye Bye--General Lee

 

[Mr.B]

Factbox: JAL restructuring plan under state-backed fund

TOKYO
Tue Jan 19, 2010 5:05am EST
TOKYO (Reuters) - Japan Airlines Corp has filed for bankruptcy and will be restructured with the help of a state-backed turnaround fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC).

Following are the key figures and measures in the fund's revival plan. This includes information from the ETIC's statement and a document provided by the government.

FINANCIAL AND OPERATIONAL POSITION

The ETIC said JAL companies are carrying about 780 billion yen ($8.6 billion) of interest-bearing debt, excessive relative to its earnings capacity. It said the carrier is operating too many routes and aircraft, and that management has been unable to take decisive action, resulting in excessive fixed costs.

FINANCIAL AID

The ETIC said it and the state-owned Development Bank of Japan would provide JAL with 600 billion yen in debtor-in-possession financing to ensure it can maintain operations. Following its decision to acquire JAL debt, it would inject 300 billion yen of capital into JAL.

The ETIC said JAL companies are expected to receive 730 billion yen worth of debt forgiveness.

JOB, ROUTE CUTS

JAL will cut its group workforce to 36,201 by fiscal year 2012 from 51,862 in fiscal year 2009.

The carrier will reduce the number of domestic routes to 119 from 136 and the number of international routes to 79 from 93.

FLEET STRATEGY

JAL will retire aging and less fuel-efficient aircraft and introduce smaller and more advanced planes.

It said it would retire all 37 of its Boeing 747-400 planes and all 16 of its McDonnell Douglas MD-90 aircraft. At the same time JAL will introduce 50 small and regional jets.

SHAREHOLDERS

The ETIC said it intends to implement measures to hold shareholders accountable, including a 100 percent reduction of capital. It said the final decision on that matter, however, would be made in a forthcoming revival plan.

The Tokyo Stock Exchange said it would delist JAL's shares on February 20.

PROFIT, SALES TARGETS

JAL's sales are expected to come to 1.36 trillion yen in the year to March 2013, a drop of 30 percent against the 1.95 trillion yen booked in the year ended March 2009.

Its operating profit is expected to recover to 115.7 billion yen in the year to March 2013 from an expected loss of 265 billion yen in the current business year to March 2010.




Interesting....??? How about they trade us the 37 744s for Comair? Deal.


Bye Bye--General Lee

Looks like all you'll get is a codeshare.....maybe

 

[Rez O. Lewshun]

That could be more flying for NWA/DAL. Curious DAL hasn't furloughed... JAL going to skyteam might be a good thing for DAL pilot staffing.

Since JAL is shrinking, is there market share to take? If so, whom? more for oneworld, Star, and/or Skyteam? Growth for US carriers?

If growth for STAR will it go to ANA and not UAL?

Regardless, if JAL goes to Skyteam, it will radically shake up the global market share and the players. I would imagine AMR would pay a heavy price.

 

[Full of LUV]

Older is better in these situations....

Inamori is 77. Good luck with that.

I think DAL's BK CEO was in his late 70's, brought out of a comfortable Warehouser retirement, in fact I heard he even commuted from SEA to run DAL through the BK process.

These old timers work best in these situations because they have no other motivation other than a legacy of success. They have no career aspirations so they are willing to say and play it like it is, not afraid to step on unions toes or ruffle the board's feathers.

Neither needs the job, they just do it for the same reasons the over 60 pilots do, because they can.....

 

[Dumb Pilot]

I think DAL's BK CEO was in his late 70's, brought out of a comfortable Warehouser retirement, in fact I heard he even commuted from SEA to run DAL through the BK process.

These old timers work best in these situations because they have no other motivation other than a legacy of success. They have no career aspirations so they are willing to say and play it like it is, not afraid to step on unions toes or ruffle the board's feathers.

Neither needs the job, they just do it for the same reasons the over 60 pilots do, because they can.....

Correct, specially this particular individual that is a billionaire! He is doing it just for the excitement of the challenge, besides I don't think he can do any worst that the ones that are there now

 

[Tail Gunner Joe]

It's never too late, however time is running out. Look for AMR to do something with ALK this year, IMO...

What does AMR need in Sri Lanka?

http://www.airlinecodes.co.uk/airllistres.asp?airliata=&airlicao=A
ICAO-Code:ALK
Airline:SriLankan Airlines
Country:Sri Lanka

 

[Noserider76]

Best wishes to the pilots and other employees of JAL.

 

[d328pilot]

Since JAL is shrinking, is there market share to take? If so, whom? more for oneworld, Star, and/or Skyteam? Growth for US carriers?

If growth for STAR will it go to ANA and not UAL?

Absolutely a large amount of growth will go to Star and ANA in particular. It is a Japanese airline that is failing that carried mostly Japanese passengers. The Japanese prefer things that are Japanese and if forced to chose between a foreign carrier and a Japanese carrier, most are going to choose Japanese. Especially the high yield Japanese business man.

Same as most Americans would choose a US airline over a foreign one.

On the surface, there does not appear to be much shrinkage over the long term. They are retiring 37 747s over 3 years and have 35 firm 787 orders with 20 options. ANA is also doing the same, getting rid of 747s to be replaced with long range twins. I think short term (1-5 years) you will see JAL stop flying some international routes, but over the long term (5+years), they will still have a huge market share of the international Japanese market.

 

[Yuppyguppy]

If true AMR has very little feed into the most profitable market in the world...ouch...but don't worry UAL will be selling our pacific routes off soon cuz we gotta pay for such outstanding and award winning management

 

[General Lee]

Looks like all you'll get is a codeshare.....maybe

Ummmmm, what? What article did you read? Looks like JAL wants to dump INTL routes and planes? We are the only other airline with 5th Freedom rights from Japan, allowing us to fly wherever we want. The Tokyo Government and the ETIC both favor DL's plan. But you know better, right??? AA does NOT have the right to fly anywhere other than their current routes (JFK, DFW, LAX, and ORD) That just doesn't seem promising, even though they are trying to jack up the price just like they did with the Pan Am stuff. Good try! I guess we'll see.......(BTW, we have 744s and MD90s right now)


Bye Bye---General Lee

 

[General Lee]

Absolutely a large amount of growth will go to Star and ANA in particular. It is a Japanese airline that is failing that carried mostly Japanese passengers. The Japanese prefer things that are Japanese and if forced to chose between a foreign carrier and a Japanese carrier, most are going to choose Japanese. Especially the high yield Japanese business man.

Same as most Americans would choose a US airline over a foreign one.

On the surface, there does not appear to be much shrinkage over the long term. They are retiring 37 747s over 3 years and have 35 firm 787 orders with 20 options. ANA is also doing the same, getting rid of 747s to be replaced with long range twins. I think short term (1-5 years) you will see JAL stop flying some international routes, but over the long term (5+years), they will still have a huge market share of the international Japanese market.

Again, DL (via NW ORIENT) has the rights to fly anywhere from Japan, and that is a good thing. They (Tokyo) won't just give everything to ANA. Nope. And JAL wants to get radically smaller, soon, to become a strong entity. That is what is important to the Japanese, to save face. What about their JAL Cargo 744s? They are fairly new. I guess they are gone. What about their 777-300ERs? They said they will be getting rid of most of their (INTL)widebodies and going for a mainly domestic fleet.(they do have some domestic widebodies that fly high density routes out of HND to major domestic cities within Japan, which will probably stick around. Do they need 777-300ERs for those cities? No) Outsourcing will be huge. What about the JALWays 744s that go to Hawaii? Looks like they will be gone too. I think you may be a bit wrong. They want to do it right the first time, and they are looking for a partner that can still feed them revenue by taking over the expensive routes. Think 5th Freedom, baby!


Bye Bye---General Lee

 

[d328pilot]

Again, DL (via NW ORIENT) has the rights to fly anywhere from Japan, and that is a good thing. They (Tokyo) won't just give everything to ANA. Nope. And JAL wants to get radically smaller, soon, to become a strong entity. That is what is important to the Japanese, to save face. What about their JAL Cargo 744s? They are fairly new. I guess they are gone. What about their 777-300ERs? They said they will be getting rid of most of their (INTL)widebodies and going for a mainly domestic fleet.(they do have some domestic widebodies that fly high density routes out of HND to major domestic cities within Japan, which will probably stick around. Do they need 777-300ERs for those cities? No) Outsourcing will be huge. What about the JALWays 744s that go to Hawaii? Looks like they will be gone too. I think you may be a bit wrong. They want to do it right the first time, and they are looking for a partner that can still feed them revenue by taking over the expensive routes. Think 5th Freedom, baby!


Bye Bye---General Lee

I think your news is a little off there General. They are getting rid of the 747s and the MD 80s. No where did they say they were getting rid of their entire widebody fleet. As it stands, that would leave them with with 18 737s. Everything else they own is a widebody.

They have stated that they are planning to cut only 13 international routes. That still leaves them with over 50. ANA has stated that we have some interest in doing some of those routes and the Japanese government has already allotted us enough slots in HND and NRT to do the extra flying.

JALWays is pretty much gone already. They mostly flew classics and only 400s for a short time.

One of the government's possible options was to give JALs international operation to ANA. period.... But, ANA has since said they have no interest in doing that.

777-300ERs will be used to replace the 747s on high yield international routes that they keep. And they do need 777s for domestic. Not the ERs but they have no problem filling seats on 747's in a once class configuration so I am sure they won't have any problem with 777s.

About the Japanese saving face..... If you think that saving face is allowing a US airline to take the place of the once icon of booming post-war Japan (JAL), you are off your rocker. Also, JAL wanting to be small "soon." You obviously don't understand the definition of "soon" to the Japanese. Nothing here ever happens soon by western standards.

I highly highly doubt that you are going to see massive increases in Japan to Asia flights being flown by DL. Maybe a few from the US to Japan and a few more Japan to Asia routes but nothing massive. Just look at how many passengers fly on US carriers now that originate in Japan... I fly home from Tokyo to Thailand every month and 90% of the passengers are connections from the US. Business class passengers are probably only 5% that originate in Japan (usually only me)...if that. You have a market in Tokyo, but it is flying connecting passengers.

DL is not going to replace JAL flying international routes out of Japan. If you really think that, you really don't understand the Japanese at all.

 

[d328pilot]

Reuters:

All Nippon is looking to increase its overseas flights by targeting profitable routes to Europe and the United States and has told Japan's government of its interest, the Yomiuri said, citing unidentified sources.

JAL, whose shares hit a record low this week on expectations that it was headed for bankruptcy under a state restructuring plan, has been burdened by unprofitable domestic and international routes.

JAL has already said it will terminate flights on 30 routes, including 13 international, by June.

All Nippon competes with JAL on more than 30 of All Nippon's 40 international routes, the paper said.

"We want to increase flights to Europe and the United States," the Yomiuri quoted an All Nippon executive as saying.

 

[ACL65PILOT]

Wait for the deets.

I bet AF does many of the European cities, and DAL does the Americas.

 

[General Lee]

I think your news is a little off there General. They are getting rid of the 747s and the MD 80s. No where did they say they were getting rid of their entire widebody fleet. As it stands, that would leave them with with 18 737s. Everything else they own is a widebody.

They have stated that they are planning to cut only 13 international routes. That still leaves them with over 50. ANA has stated that we have some interest in doing some of those routes and the Japanese government has already allotted us enough slots in HND and NRT to do the extra flying.

JALWays is pretty much gone already. They mostly flew classics and only 400s for a short time.

One of the government's possible options was to give JALs international operation to ANA. period.... But, ANA has since said they have no interest in doing that.

777-300ERs will be used to replace the 747s on high yield international routes that they keep. And they do need 777s for domestic. Not the ERs but they have no problem filling seats on 747's in a once class configuration so I am sure they won't have any problem with 777s.

About the Japanese saving face..... If you think that saving face is allowing a US airline to take the place of the once icon of booming post-war Japan (JAL), you are off your rocker. Also, JAL wanting to be small "soon." You obviously don't understand the definition of "soon" to the Japanese. Nothing here ever happens soon by western standards.

I highly highly doubt that you are going to see massive increases in Japan to Asia flights being flown by DL. Maybe a few from the US to Japan and a few more Japan to Asia routes but nothing massive. Just look at how many passengers fly on US carriers now that originate in Japan... I fly home from Tokyo to Thailand every month and 90% of the passengers are connections from the US. Business class passengers are probably only 5% that originate in Japan (usually only me)...if that. You have a market in Tokyo, but it is flying connecting passengers.

DL is not going to replace JAL flying international routes out of Japan. If you really think that, you really don't understand the Japanese at all.

Thanks for that, but DL won't give any money without getting a piece of the pie. If you think the money is for free, then you are the one who is off your rocker. You forget that Tokyo and the ETIC are in favor of a new codeshare, and that should mean something to you. DL has the rights to fly new routes, and I bet you may see some sooner than later. Where do you think the 37 744s are going to go? JALWAYS has 4 daily 744s from HNL to Japan (KIX, NGO, and 2 to NRT) Besides that, could some of those be JAL Cargo? Somebody will fill in the gaps, regardless of what you think, and it won't only be ANA.


Bye Bye--General Lee

 

[Mr.B]

Ummmmm, what? What article did you read? Looks like JAL wants to dump INTL routes and planes? We are the only other airline with 5th Freedom rights from Japan, allowing us to fly wherever we want. The Tokyo Government and the ETIC both favor DL's plan. But you know better, right??? AA does NOT have the right to fly anywhere other than their current routes (JFK, DFW, LAX, and ORD) That just doesn't seem promising, even though they are trying to jack up the price just like they did with the Pan Am stuff. Good try! I guess we'll see.......(BTW, we have 744s and MD90s right now)


Bye Bye---General Lee

By the time the JAL/DAL or AMR (still up in the air) alliance is sorted out the UAL/CAL/ANA venture will be firewalled. Should UAL decide to finally run an airline and pull out their dormant Pacific routes, watch out. I'm done with you little man so take your chihuahua yapping elsewhere.

 

[Yuppyguppy]

well said....looks like the general just got demoted to colonel...LOL!!

 

[d328pilot]

Thanks for that, but DL won't give any money without getting a piece of the pie. If you think the money is for free, then you are the one who is off your rocker. You forget that Tokyo and the ETIC are in favor of a new codeshare, and that should mean something to you. DL has the rights to fly new routes, and I bet you may see some sooner than later. Where do you think the 37 744s are going to go? JALWAYS has 4 daily 744s from HNL to Japan (KIX, NGO, and 2 to NRT) Besides that, could some of those be JAL Cargo? Somebody will fill in the gaps, regardless of what you think, and it won't only be ANA.


Bye Bye--General Lee

The only thing that matters to me is that we just got 5 777s and 5 767 to be delivered ASAP.... wonder what thats for...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aNTR_wHY5lyk&pos=5

JAL May Lose Passengers to ANA as Travelers Worry About Service

Jan. 20 (Bloomberg) -- Japan Airlines Corp., Asia’s first flag carrier to file for bankruptcy, could lose passengers to All Nippon Airways Co. on customer concern that service standards will drop.

JAL’s service has already suffered a “slight decline” in the past six weeks, said Edward Plaisted, chief executive officer of Skytrax, which ranks airlines globally on quality and currently rates the carrier four stars out of five.

“Outside Japan, we do believe that the JAL situation will serve to drive more and more customers to using ANA,” Plaisted said in an e-mail interview. “In the past two to three years, JAL has simply not been able to keep pace with the quality change and quality improvements by their key rival.”


ANA plans to expand its international services, Ito said. He denied that it may buy JAL’s overseas operations.

 

[ACL65PILOT]

Just for arguments sake, you did notice that JAL has 71 aircraft on order with Boeing correct?

 

[d328pilot]

which they have stated they plan on keeping. No one is going to just come in and replace JAL. Many carriers will see small growth in the short term, and long term JAL hopefully with get their ducks in a row.

 

[johnsonrod]

The only thing that matters to me is that we just got 5 777s and 5 767 to be delivered ASAP.... wonder what thats for...

http://www.bloomberg.com/apps/news?pid=20601087&sid=aNTR_wHY5lyk&pos=5

JAL May Lose Passengers to ANA as Travelers Worry About Service

Jan. 20 (Bloomberg) -- Japan Airlines Corp., Asia’s first flag carrier to file for bankruptcy, could lose passengers to All Nippon Airways Co. on customer concern that service standards will drop.

JAL’s service has already suffered a “slight decline” in the past six weeks, said Edward Plaisted, chief executive officer of Skytrax, which ranks airlines globally on quality and currently rates the carrier four stars out of five.

“Outside Japan, we do believe that the JAL situation will serve to drive more and more customers to using ANA,” Plaisted said in an e-mail interview. “In the past two to three years, JAL has simply not been able to keep pace with the quality change and quality improvements by their key rival.”


ANA plans to expand its international services, Ito said. He denied that it may buy JAL’s overseas operations.

Under an article titled "Foreign Predators circle crippled Japan Airlines", the fifth paragraph states: "If JAL joins SkyTeam, it is "highly likely that JAL's flights to America will be replaced by Delta," said Yasuhiro Matsumoto, a credit analyst at Shinsei Securities."

In that same article, Yoshihisa Akai, head of research at Japan Aviation Management Research states, "As JAL becomes slimmer, Delta would provide many flights."


Sorry about the above, I could not cut and paste the article. It is on APC if you need to see it. Sounds like Delta could do well and grow if JAL decides to go to the SkyTeam. Maybe I could throw an app in.