Jan 17 2001
JAL CHANGES 80% OWNED AIRLINE SUBSIDIARY "JALWAYS"TO 100% OWNERSHIP
Japan Airlines has reached agreement with JALways, an airline subsidiary, to change it from 80% owned to 100% owned and today concluded the contract for the exchange of stock. The exchange of stock will take place on March 9, 2001, after approval by an extraordinary meeting of JALways shareholders.
JAL and JALways have taken this step to improve operational efficiency and to enhance the development of the JAL Group's route network.
JALways was founded as Japan Air Charter, a low-cost 80%-owned subsidiary, in 1990. The company changed its name to JALways in October 1999, when it also became a scheduled airline, to develop as a group airline flying mainly to Asia-Pacific resort destinations. From April 2000 in line with the airline's FY2000-2002 medium term corporate plan, JAL has transferred resort destination routes to JALways, to strengthen the JAL Group's competitive power. JALways currently operates 116 flights a week on 10 routes.
Cockpit and cabin crew of JALways are recruited and based overseas. The airline flies to Honolulu, Hawaii, from regional cities in Japan, to Guam from Tokyo, Osaka and Nagoya and to Saipan and Bangkok, Thailand, from Tokyo and Osaka..
The subsidiary is already consolidated and the change in shareholding will have no direct effect on the JAL Group's consolidated results.
To process the agreement, JAL will increase its paid-in capital by 226 million yen, from 188.32 billion yen (as of September 30, 2000) to 188.55 billion.
JALWAYS - background