The Japan Airlines group has ended negotiations to merge Japan Airlines International (JAL) with Nippon Cargo Airlines (NCA).
Nippon Yusen Kabushiki Kaisha (NYK), NCA's parent, had started discussions with the JAL group in August 2009 to study a merger of the cargo businesses of JAL and NCA.
"Both parties have reached an amicable conclusion to end the negotiations because the structure of the merger could not be organised within the scope of the agreement between JAL and NYK," says JAL.
The two companies, however, will continue their existing business relationships such as code-sharing flights and coordinating ground handling activities, it adds.
"JAL's strong relationship with Nippon Yusen remains unchanged as we reach a common understanding to halt discussions about the merger Demand for air cargo business typically fluctuates with the economy. Considering further growth in the segment, JAL will include strategies for our cargo business in the JAL reorganization plan," says JAL group chief operating officer and president Masaru Onishi.
JAL filed for bankruptcy protection in January after incurring ¥2.3 trillion ($25.8 billion) in debt, and has started a financial restructuring process.
Source: Air Transport Intelligence news
