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Japan Airlines

JAL to delay submission of restructuring plan

Yoshio Takahashi  May 25, 2010

TOKYO - Japan Airlines Corp. said Tuesday it will postpone by two months the submission of a restructuring plan to the court as it seeks to flesh out details of the plan.

"We want to compile the plan in a much more detailed and accurate manner to make it much better," JAL chairman Kazuo Inamori said at a monthly press conference.

The airline, currently under court-led restructuring after filing for bankruptcy protection in January, initially intended to present the plan to the Tokyo district court by the end of June. The court has agreed to the new deadline, JAL said.

Hideo Seto, committee chairman with the a state-backed turnaround body, the Enterprise Turnaround Initiative Corp., said the decision to postpone submission of the plan in part reflects the hopes of some JAL lenders for a solid scheme for the airline's revival.

The ETIC decided to support JAL's restructuring in January.

Seto dismissed the view that the delay means the revamp isn't going well.

"This is not because (JAL's revival) is not going well, but because we want to make a much better plan," he said.

In April, JAL said it would end services on 15 overseas routes and 30 domestic routes.

The cutbacks bring the total number of terminated routes since the previous fiscal year that ended March 31 to 28 international routes and 50 domestic routes.

JAL to delay submission of restructuring plan
JAL chairman Kazuo Inamori / Image via

Source: Dow Jones Newswires

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