Printer Friendly

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.
COPYRIGHT 2010 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2010 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Transportation Scan
Date:Jan 18, 2010
Previous Article:Turnaround body to delist JAL shares, safeguard mileage benefits.
Next Article:Russian airline to fly Russian Far East-Narita routes.

Related Articles
JAL lenders to cave in to bankruptcy plan: sources.
Japan Airlines heads for bankruptcy.
Japan Airlines files for bankruptcy.
Japan Airlines set for bankruptcy.
Japan Airlines bankruptcy filing expected Tuesday.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters