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Monday, March 1, 2010

JAL ends merger talk with NYK

Back in January, there were reports saying the merger talk between Japan Airlines and NYK's cargo operations (NCA) had hit some major obstacles. Today, JAL issued a press release saying they have ended the negotiations.

JAL and NYK could not reached an agreement on the structure of the merged operation. As reported earlier, ETIC wants JAL to offload as much risk as possible on its cargo operation. But NYK doesn't want to bear most of the risk of this joint operation. Even JAL and NYK were not able to merge, JAL will continue to maintain its code sharing agreements with NYK and as well as coordinating on ground handling services. And they are open to possible cooperation in the future.

“JAL’s strong relationship with Nippon Yusen remains unchanged as we reach a common understanding to halt discussions about the merger. We intend to maintain mutually-beneficial business activities with NCA such as the current code share flights, and 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 Reorganization Plan.”

So we will have to wait to see what JAL will do with the cargo unit.

Related Posts:
JAL and NYK cargo merger talks stall
JAL and NYK starts talking about cargo merger

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