Market Report – JAL Chase
In today’s market report… Air France-KLM is in talks for a potential Japan Airlines stake, as the Asian carrier plans service and staff cuts to slash costs by 30 percent.
JAL hopes to raise about $1.1 billion by selling stakes to foreign carriers, with potential suitors now including Air France, Delta, American Airlines, and Korean Air.
Japanese law allows only one-third foreign ownership of JAL, but in separate talks it is looking for $200 to $500 million in investment.
Asia’s largest carrier by revenue will reportedly scrap as many as 24 international flights within 3 years, while looking to shed an extra 1,000 jobs, bringing its total to 6,000.
JAL accepted a $1.1 billion emergency loan from the government and is under pressure to turn around losses that hit $1 billion last quarter.
Shares of the Japan flag carrier edged lower despite the Air France news, after jumping 8 percent Monday.
Elsewhere in Asia share markets gained slightly, with a mild easing of the yen’s strength against the dollar boosting exporters like Honda and Toyota.