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December 21, 2007 |
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JAPAN AIRLINES: Speeds Up Restructuring Programs Japan Airlines International Co., Ltd., which is undergoing restructuring programs, plans to implement planned personnel cuts one year ahead of schedule and consolidate four maintenance units, sources disclosed to Jiji Press. The plans will be included in the airline's business program for fiscal 2008-2010 to be compiled in February next year, states Jiji Press. According to Jiji Press, its sources said JAL now plans to reduce its group workforce by 4,300 from 53,100 by fiscal 2008 ending in March 31, 2009, instead of the originally predicted fiscal 2009. The report adds that JAL plans to integrate, by the end of 2010, its four maintenance units JAL Narita Aircraft Maintenance Co., JAL Tokyo Aircraft Maintenance Co., JAL Engine Technologies Co. and JAL Aviation Technologies Co. Jiji Press relates that JAL believes it can speed up the personnel reduction as it has received applications to leave the company from more employees than expected through its voluntary retirement programs. About Japan Airlines Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/ -- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * As reported on Feb. 9, 2007, that Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit and issue ratings on Japan Airlines Corp. (B+/Negative/--) following the company's announcement of its new medium-term management plan. The outlook on the long-term corporate credit rating is negative. As reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co. Ltd. and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. The rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. |
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