JAL and JAS to merge

tjwgrr · 11-11-2001, 07:58 AM

Japanese airlines iron out merger
By CBS.Marke****ch.com
Last Update: 3:16 PM ET Nov. 10, 2001

TOKYO (CBS.MW) -- In what marks the first restructuring of the Japanese transport industry in 30 years, No. 1 air carrier Japan Airlines Co. and third-ranked Japan Air System Co. have agreed to the loose terms of a merger, the Nihon Keizai Shimbun reported in its Sunday edition.

The merger, aimed to boost the domestic market share of the two airlines, would form the world's six largest airline based on passenger miles and would offer stiff competition to Nippon Airways Co., the newspaper said in a report that did not quote company executives. The move also comes about as a weak domestic economy continues to sap company profits.

Executives of Japan Airlines, its top shareholder Tokyu Corp., and Japan Air have been discussing ways to clinch the deal by the end of the year. Both plan to have the deal approved at their respective shareholders meetings in June, the newspaper said.

The Japan Airlines group currently has 25 percent of the domestic airline market and Japan Air 23 percent, making its combined market share evenly split with that of Nippon Airways.
Tokyu, which owns 30 percent of Japan Airlines, had been trying to beef up its bottom line through restructuring but has since said it views a merger as the only viable salvage.

Travelin' Man · 11-12-2001, 01:30 PM

No surprises here - look for more mergers throughout the world.

11-11-2001, 07:58 AM	#1
tjwgrr Senior Collector Join Date: Jul 2000 Location: Grand Rapids, MI Posts: 471	JAL and JAS to merge Japanese airlines iron out merger By CBS.Marke****ch.com Last Update: 3:16 PM ET Nov. 10, 2001 TOKYO (CBS.MW) -- In what marks the first restructuring of the Japanese transport industry in 30 years, No. 1 air carrier Japan Airlines Co. and third-ranked Japan Air System Co. have agreed to the loose terms of a merger, the Nihon Keizai Shimbun reported in its Sunday edition. The merger, aimed to boost the domestic market share of the two airlines, would form the world's six largest airline based on passenger miles and would offer stiff competition to Nippon Airways Co., the newspaper said in a report that did not quote company executives. The move also comes about as a weak domestic economy continues to sap company profits. Executives of Japan Airlines, its top shareholder Tokyu Corp., and Japan Air have been discussing ways to clinch the deal by the end of the year. Both plan to have the deal approved at their respective shareholders meetings in June, the newspaper said. The Japan Airlines group currently has 25 percent of the domestic airline market and Japan Air 23 percent, making its combined market share evenly split with that of Nippon Airways. Tokyu, which owns 30 percent of Japan Airlines, had been trying to beef up its bottom line through restructuring but has since said it views a merger as the only viable salvage.

Thread Tools
Show Printable Version Email this Page
Rate This Thread
Rate This Thread:

11-12-2001, 01:30 PM	#2
Travelin' Man Insane Collector Join Date: May 2000 Location: Aspen USA!!! Posts: 1,919	No surprises here - look for more mergers throughout the world.