Struggling Japan Airlines' rehabilitation procedure finally begins
(From The Japan Times Jan. 21 issue)

JAL再建計画ついに開始

Japan Airlines Corp., together with its two key subsidiaries — Japan Airlines International Co. and JAL Capital Co. — filed for bankruptcy protection Jan. 19 with the Tokyo District Court under the Corporate Rehabilitation Law. The group's combined liabilities of ¥2.32 trillion amount to the biggest non-financial corporate failure in Japan's postwar history.

The Hatoyama administration apparently opted for the court-led rehabilitation procedure, which ensures transparency, to demonstrate its departure from the days of Liberal Democratic Party rule, when JAL overcame difficulties after securing the cooperation of banks in a rather opaque process.

Transport Minister Seiji Maehara said, "Today is the starting point for JAL's revival." The rehabilitation procedure is the last chance for the flag carrier's survival and revival.

JAL suffers from excess liabilities of some ¥860 billion. Its creditors will be asked to waive debts of some ¥730 billion. The government-backed Enterprise Turnaround Initiative Corp. of Japan will invest ¥300 billion in JAL, using public funds, and it and the state-owned Development Bank of Japan will set aside ¥600 billion for a credit line.

The rehabilitation plan calls for drastic steps to reconstruct JAL in three years. To rectify its high-cost structure, JAL will cut some 15,700 jobs, or about 30 percent of its group workforce, close 31 air routes, halve the number of its subsidiaries from the current 110, eliminate jumbo jets and introduce smaller airliners. The introduction of smaller aircraft is expected to cost more than ¥200 billion. Job cutting is expected to be a difficult process since JAL has eight labor unions.

It is not clear whether the rehabilitation plan will lead to rapid improvement in JAL's operations, as the plan comes up short on revenue-making measures. It is hoped that JAL's labor and management will fully cooperate to put the struggling airline on a path of recovery while doing their utmost to ensure flight safety. JAL must also work hard on its tarnished image to avoid losing customers.

　日本航空と子会社の日本航空インターナショナル、ジャルキャピタルの３社は、会社更生法適用を東京地裁に申請、負債額2兆3200億円で事業会社としては戦後最大の経営破たんとなる。鳩山内閣は、JALが不透明な過程で難局を乗り切った自民党政権時代からの離脱を示そうと、透明性の高い法的整理を求めたようだ。

　JALは約8600億円の債務超過で、金融機関は7300億円の債権放棄を求められる。企業再生支援機構は公的資金3000億円を投入、日本政策投資銀行と合わせて6000億円の融資枠を設定する。

　高コスト構造改善のため、JALグループ全体の３割にあたる約1万5700人を削減、31路線を廃止、子会社を半減する。８つの労組との人員削減交渉も難題だ。

　収益源確保の策に欠ける再建計画が、迅速な経営改善につながるかどうか。従業員と役員が団結して安全運航を維持しつつ、顧客をつなぎとめねばならない。