JAL sinks further in red with big Q2 loss
17 Nov 2009
Struggling carrier, Japan Airlines, has reported a second quarter net loss of ¥32.1 billion ($357 million) ended 30 September. This reverses a ¥40.1 billion ($443 million) profit in the year-ago period.
The carrier has applied for "certified alternative dispute resolution," an out-of-court mediation process that allows struggling Japanese companies to negotiate debt settlements with creditors.
The Q2 loss brings JAL's fiscal first-half deficit to ¥131.2 billion ($1.44 billion), reversing a ¥36.6 billion ($404 million) profit in the year-ago period.
The government and the carrier also failed to agree on a restructuring plan, which was expected to be announced ahead of the results.
JAL said that "agreement regarding the proposed business revitalization plan has not yet been reached between the parties concerned."
JAL's restructuring effort will, very likely, be overseen by the Enterprise Turnaround Initiative Corp of Japan (ETIC), a semi-government body created to help rescue struggling companies.
