March 2: Troubled Japanese airline group JAL, owner of Japan Airlines, confirmed that the previously planned merger with Nippon Cargo Airlines has been called off.
A merger had been announced in August 2009 but JAL’s recent financial problems and restructuring have seen negotiations called off in an “amicable conclusion”, according to JAL. Both parties will continue to operate code-sharing flights and coordinate ground handling activities and will be “open to discussions about any possible cooperation in the future.”
“We intend to preserve the cooperation that we have already established,” said JAL Group Chief Operating Officer and President, Masaru Onishi. “Demand for air cargo business typically fluctuates with the economy. Considering future growth in the segment, JAL will include strategies for our cargo business in the JAL Reorganisation Plan.”