Financially troubled flag carrier Japan Airlines (JAL) has applied to have formal mediation with its banks in an effort to reach an agreement on payment of its debts.
JAL has submitted an application to the Japan Association of Turnaround Professionals (JATP), a private organisation that helps with corporate turnarounds by providing advice and assistance including help with mediation, says the Oneworld carrier.
This organisation is certified by the ministry of economy, trade and industry as well as the ministry of justice, says JAL.
The airline says it anticipates that the association will help to organise three meetings with creditors over the November-February period.
Even though JAL has applied to the Enterprise Turnaround Initiative Corporation of Japan (ETIC) for financial assistance, it is important JAL "take immediate radical restructuring measures" and start talks with "relevant creditor financial institutions", it says.
A JAL spokeswoman confirms that JAL is using the mediation process to try and reach an agreement with its banks over debts repayments.
Its decision to turn to the JATP comes after the banks reportedly balked at JAL's earlier request for help.
Source: Air Transport Intelligence news