JAL won't forge capital tie-up with US carrier
Troubled Japan Airlines (JAL) is unlikely to form a capital tie-up with a US carrier and will limit the partnership to a business tie-up for now, an economic daily reported Sunday.
JAL has been offered financial help by both American Airlines and Delta Air Lines, which are competing to take a stake in the company and increase their respective shares of the lucrative Asian market.
Debt-ridden JAL has studied a capital tie-up with one or other of the airlines as it would limit the amount of taxpayer money needed for an out-of-court rehabilitation.
But the Japanese airline is now expected to file for bankruptcy with a guarantee of public support next week under a rescue plan mapped out by the state-backed Enterprise Turnaround Initiative Corp (ETIC), Japanese media reported.
The ETIC, which is overseeing JAL's restructuring, believes a capital tie-up with a US carrier would complicate the government-led rehabilitation process and narrow the options of the soon-to-be-selected new management, the Nikkei said, citing unnamed sources.
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