Reply To: JAL- Ugent talks to avoid Bankruptcy

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Bloomberg disagrees with Reuters:

miuri Newspaper reported today that the company and Delta Air Lines Inc. reached a basic agreement on a tie-up covering code-sharing services.

A state-backed fund is set to decide on a turnaround plan for JAL on Jan. 19 after the carrier sought help reorganizing following three losses in four years. The program will probably include a bankruptcy filing, according to three people familiar with the situation, which may wipe out investors.

Delta has offered a $1 billion package to lure Tokyo-based JAL into its grouping, while American and partner private-equity firm TPG have offered a $1.4 billion investment to safeguard access to flights in Japan and China. Both of the U.S. carriers have said that bankruptcy wouldn’t deter them.

“We continue to be in discussions with JAL,” Betsy Talton, a Delta spokeswoman, said in an e-mail.

Japanese Transport Minister Seiji Maehara has said he doesn’t expect a decision on JAL’s alliance partner this month.

“We have no reason to believe this unsubstantiated and speculative report,” Charley Wilson, a spokesman for the AMR unit, said regarding the Yomiuri report.

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