JAL and NYK Commence Cargo Business Reform and Merger Negotiations

Logistics Insight Asia - Industry News, 9/9/2009

Japan Airlines (JAL) and Nippon Yusen Kaisha (NYK) have announced that Japan Airlines International (JALI) – the key subsidiary of JAL, and NYK, have reached an agreement. This is for the commencement of negotiations involving the restructuring of their cargo business and a potential merger between the cargo business of JALI and Nippon Cargo Airlines (NCA) - a subsidiary of NYK.

Both companies are focusing on improving profitability in the present situation. Through a restructuring of the cargo business and by combining the strengths of the two cargo operators in Japan to form a solitary Japanese cargo transport provider, JALI and NCA foresee being able to secure profitability and raise the value of both companies.

Under the agreement, both companies can begin consulting with the relevant authorities and parties concerned to explore in greater depth, the feasibility and benefits of this reform and potential merger. The new business structure is targeted to start from April 1, 2010.

NYK, www.nyk.com