Delta meets Japanese govt for capital ties with JAL
Executives of Delta Airlines Inc met today with Japanese transport minister Seiji Maehara, with the world's biggest carrier trumpeting the long-term benefits of forming capital ties between Delta and the struggling Japan Airlines Corp to help its turnaround.
The US carrier has offered JAL a $1.02 billion financial package with global SkyTeam alliance members, including a $500 million investment, to woo the Japanese airline to switch from rival oneworld alliance with American Airlines Inc, a unit of AMR Corp.
"In order for any restructuring to be successful, a company has to have top line growth, market expansion and more passengers," Delta Chief Executive Officer Richard Anderson told reporters in Tokyo following a meeting with Maehara.
Japan's top airline, headed for its fourth annual loss in five years, is currently seeking broad financial support from a government-backed corporate turnaround body. But Anderson indicated that Delta is willing to back JAL even if it undergoes bankruptcy proceedings.