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Friday, September 4, 2009

Rumor: JAL is selling its stake in Hokkaido Air System

According to The Japan Times, Japan Airlines is going to sell most of its shares in Hokkaido Air System, which currently is a consolidated subsidiary of JAL.

The main reason is profitability. The regional airlines has been losing money in the last few years. Currently JAL owns 51% of HAC and the remaining share is held by the Hokkaido Prefectural Government. Therefore, it is very difficult for JAL to cutback on unprofitable routes (well you know how governments are :P). JAL is expected to sell majority of its shares to Hokkaido Prefectural Government.

I am not sure how this will affect the fly on points and mileage accumulations after the transaction. Hopefully HAC flights will remain eligible for fly on points even though it will no longer be a JAL subsidiary.

Source: The Japan Times

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