[Anonymous]

[MarcusUK]

Flew through SIN yesterday eve, & The Straits Times & International Herald, both feature a strong Business article on JAL.

Apparently they are making 6,500 staff redundant, pretty urgently needing an injection of cash, with KLM /AF being one option as they are cash rich, or one of the US carriers, Delta or United.

“A last ditch attempt to raise money & avoid Bankruptcy has set the stage for a battle between US carriers AA & Delta, but also KLM/AF are in talks to inject cash”

Sure the news will unfold on line, as my info is already now 2 days past…

[Airpocket]

The incoming Japanese Government has stated that it won’t let JAL fail. Perhaps a merger with ANA might be on the cards, in the event that Delta and KLM-Air France don’t agree to terms?We know how tricky these merger negotiations can be.
I’m not sure how Delta and KLM-AF can afford to take on JAL; it’s not as if those airlines are raking it in themselves.

[Discovery-Bay]

I think that you will find the fund raising by AA today will be to strengthen their bid for a minority shareholding in JAL.
The important point for AA is to keep and improve their access in Asia and keep JAL in ONEWORLD. If AF-KLM or Delta take a holding the pressssure would be for JAL to leave ONEWORLD.

[Hess963]

Hi everyone!!

more news.. AA is/might be getting support from BA and QF in order to win the bid against DL. It would be a ” trio effort ” inorder to keep JL within Oneworld. As well AA gaining a decent piece of the Japanese/East Asian Market .
As for the negotiaions are behind close doors, BA and QF do not want to stir a lot of attention. Especially BA with its own subject over BMI lately. Let us wait and look in how the Transport Minister means the recent comment: ” JAL must not fail…!

[MarcusUK]

Always interesting how different regions press portray their perceptions…
I read in the SQ lounge so have no link…

But AF/KLM & LH portrayed as cash rich out of the EU, but LH has the balance of offloading BMI now…& yes the mention of the Alliance would go with the cash injection, as a pre-condition it seems.
Massive internal & local market for Japan though it seems to get a foot hold into.

I think many high population countries, & “Developing countries” (more developed now with the 1st order in recession?), have the base for bums on seats internally & regionally like no one else has.
India, China, fastest take up with new wealth being created.

The World Order is gong to change for Airlines, those needing cash may well be manipulated by the cash Rich Groups.
I think that in the next 2 years, we shall see a different world order, & a few major players in the EU & world market only…its happening as we speak. increasing Fuel prices may well push others out suddenly!

SQ is down 2.3$ Bill, -30 % revenue on last yr,
Yet when i flew LHR – Syd 2 days ago in Business, the A380 was full, as was the 773, in every class!
Weird times.

[Hess963]

Yes Mark, you are right. It is really awkward to read or hear how the different regional medias report or stress the situations of the US or European airlines at the moment.
The conclusions over the Asian Market especially China and India are not foreseeing anymore but becoming or is reality now.
I do believe there will be new stirring up/consolidating and alliances in the future. As for pax’s concern–it is good that the airlines are renewing/reinventing themselves–but hopefully for our sake!!

[Airpocket]

Gentlemen, I wouldn’t get too carried away about the prospects for air travel in India. Air India has recently received a cash injection from the Government and the private airlines – Jet/Kingfisher, Spice Jet, Indigo etc., – are all taking a beating. The fact is, India and China are still, despite what we might be told be breathless reports, rural economies and it will be a while before more passengers can come ‘on stream’ and sustain air travel in those countries. With oil inching higher and incomes stagnating (or,worse, falling) I don’t see how the would-be flyers would be able to afford to or want to fly and I don’t see just how the airlines, not just in India and China, can keep discounting tickets.
Lets not forget that private airlines in India have folded or been amalgamated into larger entities in the past – Modiluft, for instance.
Personally, I think the prospective merger with/acquisition of JAL is a bad idea, kind of like eating poisonous puffer fish. :o)

[andrew007]

I had read about this in the FT yesterday and messages certainly seem to suggest the new government will seek to preserve the JAL brand. Here is the link for those interesrted: –

http://www.ft.com/cms/s/0/d41b0d5a-a3ac-11de-9fed-00144feabdc0.html?nclick_check=1

[SimonRowberry]

If I may be permitted a slight tangent here. Re air travel in China (as per Mark, Hess and Airpocket). I’ve just been going through my photo library and found a wonderful photo I took at Nanjing Airport two years ago. I wish I could post it here. It says:

“Flt No MU2887 for Shenzhen has been delayed until 17.00 due to some reason.”

Wonderfully honest!

[Airpocket]

The idiosyncratic charms of travelling in the Third World!Still, at least the flight took off and, more importantly, landed!

[Hess963]

Hi everyone !!!

The news is officially out. AA is getting help from BA and QF inorder to win the bid against DL. But BA and QF are reluctant to go full public with it as they are probably very reluctant to express what kind of help AA is getting from them. It is now obvious that the “trio” want to keep JL in Oneworld than rather losing it to DL/SkyTeam. I think for us, it is more interesting to pursuit the development and to know what are the “sacrifices” of these “trio” which means—- which sections of their company will be “suffering or rationalised” by it. Well, I think we are just seeing a good example of “free entreprise”……

[Airpocket]

Hmm…I wonder if BA will allow JAL to takeover the LON-NRT route, to sweeten the deal.
I wonder what QF will give up.

[Hess963]

Well, I am actuallly thinking of more daunting developments like
salary cuts, pension cuts or even slashing jobs…. I am thinking of BA in paricular here. The airline industry is still struggling to get to normality and the airlines are just hoping to leave the” red numbers” behind and just earn some revenue. About QF I am not so sure, if they could handle any big entreprises at the moment.

[Hess963]

Hi everyone !!!

recent update: JAL needs state’s aid beside the credit of 100 Billion Yen which was already negotiated with Japanese banks earlier.

JAL needs all the financial help it could get so it may continue with its restructuring plans. But some parts of the government are doubting the JAL is not only in huge problems because of the finance crisis but because it is partly or mostly caused by mismanagement.

The new Japanese government is in a dilema. How to help JAL rightly?

[Author]

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