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Watchdog Decision On JAL-JAS Merger Awaited

Fri Mar 15, 2002 4:00 am

(not an article)

The Japanese regulatory authorities are expected to rule on Friday, whether the JAL - JAS meger deal can go through.

If the merger does go through, the airline will have 48% share of the domestic market. The President of JAL has said that he thinks the JAL name should be kept.

Obviously, All Nippon Airways, a Star Alliance Member, has complained about the deal. It says that the airline would have a dominant control over tight slots at TKY and Osaka. However, JAL has said that ANA has more slots in the domestic market anyway.

An analyst at HSBC has said that if the merger does go through, ANA's profit margin will be cut, which at present is around 7% higher than JAL on the domestic front.

More can be found at the Financial Times' website
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