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13,334 firms in Japan could be affected by JAL's restructuring.

TOKYO, Jan. 13 Kyodo

Group firms of Japan Airlines Corp. have 13,334 business partners in Japan that could be affected by the restructuring of the struggling carrier, a credit research company said Wednesday.

According to the Tokyo Shoko Research, 2,910 of the firms have direct business relationships with JAL group companies, while 10,424 companies, including second tier contractors, have indirect business relations.

The Japanese government says JAL will continue to make payments for general business transactions based on existing contracts, even if the airline were to apply for legal bankruptcy proceedings.

But JAL's restructuring could deal a blow to the airline's business partners, particularly small and midsize firms, as its rehabilitation plan is likely to call for substantial downsizing of operations.

''Sales of vendors and service providers at regional airports could be reduced due to JAL's business contraction,'' a Tokyo Shoko Research official said.
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Publication:Japan Transportation Scan
Date:Jan 18, 2010
Words:147
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