JAL Shares Down Ahead Of Key Meeting On Revival Plan
15 Settembre 2009 - 4:58AM
Dow Jones News
Investors sold Japan Airlines Corp. (9205.TO) shares on
profit-taking Tuesday after the stock price rose sharply following
weekend news of a capital alliance between the airline and overseas
counterparts, suggesting the market remains uncertain about the
firm's efforts to return to profitability.
Ahead of a key meeting with a government-organized panel on
yet-to-be-finalized restructuring plans for Japan's biggest airline
by revenue, the firm's stock price fell 1.7% to Y173 midday after
hitting an intraday low of Y171. The Nikkei benchmark ended the
morning session up 0.1%.
Individual investors took profits from yesterday's sharp 8% gain
on positive sentiment toward the firm's alliance with Delta Air
Lines Inc. (DAL) and American Airlines parent AMR Corp. (AMR).
Meanwhile, shares may find support as some investors engaged in
dip-buying on hopes for restructuring, taking cues from a Nikkei
report earlier Tuesday that the airline has decided to end a
further 20 or so international flights to cut costs.
"Since the market sees JAL's biggest problem lies in cutting
non-performing routes, the company is on the right track," if
reports are true, said a Credit Suisse analyst.
But a possible alliance with Delta and others "doesn't
necessarily mean a step toward recovery," said a manager at a
Japanese brokerage.
Haruka Nishimatsu, President of the airline commonly known JAL,
will give a briefing later Tuesday after meeting with an
independent panel overseeing the airline's revival, a spokesman at
the company said.
Plagued by faltering demand amid the economic slowdown, JAL
reported its biggest-ever quarterly loss of Y99 billion in the
April-June quarter, and is predicting a net loss of Y63 billion for
the full business year ending March.
The financially hobbled airline is currently putting together a
business turnaround strategy, which is scheduled to be announced by
the end of the month.
Nishimatsu is expected to present the details of the plan to the
panel, set up by the transport ministry, between 0600 GMT and 0800
GMT, ahead of a formal announcement of the mid-term plan.
The JAL spokesman said the mid-term plan reflects its efforts to
scrap underperforming domestic and international routes to adjust
to a slowdown in travel demand. But he declined to give specific
details.
Elsewhere, according to press reports, Air France-KLM has joined
Delta Air and AMR's American Airlines unit in talking to JAL about
taking a small stake in the Tokyo-based company for between Y20
billion and Y50 billion.
The JAL spokesman also declined to comment on talks with
possible partners, saying it is seeking a variety of possibilities
but that nothing has been decided.
-By Hiroyuki Kachi and Ayai Tomisawa, Dow Jones Newswires;
813-6895-7562; hiroyuki.kachi@dowjones.com;
ayai.tomisawa@dowjones.com