Press Releases

Tokyo, Aug 21, 2009 (ABN Newswire) - Japan Airlines Corp. (TYO:9205) is looking to team up with shipping firm Nippon Yusen KK (TYO:9101) as part of the airline's plan to return to profitability with the help of restructuring.

The two companies will begin talks to integrate of their air cargo operations as demand for such services dwindles amid the economic slowdown.

JAL's air cargo division, the No. 1 player in the Japanese market, suffer a 20 billion yen loss in the year ended March due to weak demand. The transport ministry of Japan has requested JAL to review its cargo operations, proposing their integration with an industry peer as an option.

Nippon Yusen's arm Nippon Cargo Airlines Co.(NCA), the second-largest, is already collaborating in some business areas with JAL, including operating cargo flights under a code-sharing arrangement on air routes to some U.S. destinations.

JAL and Nippon Yusen will discuss the establishment of a joint venture to merge operations at subsidiaries Japan Airlines International and Nippon Cargo Airlines, aiming to opening the new entity on April 1 next year.

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Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net