Japanese airlines iron out merger
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 lose 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.
in a different article, which i found at airliners.net´s news section JAL dismissed reports it intended to merge with JAS. ???
If only pure sweetness was offered, why's this bitter taste left in my mouth.