End of JAL bailout curbs expected to shake up airline industry
The Japanese airline industry will enter a new era of competition in April after Japan Airlines is freed from the restrictions imposed after the nation’s former flag carrier got a public bailout, and not everyone is happy. Following its bankruptcy filing in January 2010, JAL received Y350b (US$3.1b) from a government-backed corporate rehabilitation body plus tax breaks. The airline engineered a turnaround and its shares were re-listed on the Tokyo Stock Exchange in September 2012. But ahead of JAL’s return to the stock market, the transport ministry drew up a report that stipulated state supervision of the airline was necessary to prevent a company that had received generous public support from distorting the market. Based on the so-called Aug. 10 paper, JAL has faced restrictions on investment and new flight routes. It also received fewer new takeoff and landing slots than rival All Nippon Airways when they were distributed at Haneda airport. ANA capitalized on JAL’s setback to rapidly expand its international flight network. In fiscal 2015, the 30th year since it began regular international flights in 1986, ANA Holdings finally overtook JAL in international passenger numbers. In January, transport minister Keiichi Ishii said the government’s supervision had achieved its purpose. “Through the allocations of new takeoff and landing slots, a sound competitive environment has been ensured,” he claimed. The ministry has decided to let JAL off the leash at the end of the month. “It was a temporary and extraordinary measure,” a senior official said. But ANA Holdings is unhappy with the move and believes the market remains unbalanced. “We can’t say the competitive environment has been corrected,” ANA President Shinya Katanozaka has said.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-03-27/oneworld/end-of-jal-bailout-curbs-expected-to-shake-up-airline-industry
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End of JAL bailout curbs expected to shake up airline industry
The Japanese airline industry will enter a new era of competition in April after Japan Airlines is freed from the restrictions imposed after the nation’s former flag carrier got a public bailout, and not everyone is happy. Following its bankruptcy filing in January 2010, JAL received Y350b (US$3.1b) from a government-backed corporate rehabilitation body plus tax breaks. The airline engineered a turnaround and its shares were re-listed on the Tokyo Stock Exchange in September 2012. But ahead of JAL’s return to the stock market, the transport ministry drew up a report that stipulated state supervision of the airline was necessary to prevent a company that had received generous public support from distorting the market. Based on the so-called Aug. 10 paper, JAL has faced restrictions on investment and new flight routes. It also received fewer new takeoff and landing slots than rival All Nippon Airways when they were distributed at Haneda airport. ANA capitalized on JAL’s setback to rapidly expand its international flight network. In fiscal 2015, the 30th year since it began regular international flights in 1986, ANA Holdings finally overtook JAL in international passenger numbers. In January, transport minister Keiichi Ishii said the government’s supervision had achieved its purpose. “Through the allocations of new takeoff and landing slots, a sound competitive environment has been ensured,” he claimed. The ministry has decided to let JAL off the leash at the end of the month. “It was a temporary and extraordinary measure,” a senior official said. But ANA Holdings is unhappy with the move and believes the market remains unbalanced. “We can’t say the competitive environment has been corrected,” ANA President Shinya Katanozaka has said.<br/>
