JAL and NYK pull plug on cargo plans
Talks on merger break down, but JAL and NCA will carry on code-share flights and joint ground handling
Japan Airlines (JAL) and NYK have ended talks on a merger of their air cargo operations.
The two Japanese carriers started talks last August to examine the potential synergies of restructuring JAL’s cargo business and merging it with Nippon Cargo Airlines (NCA), NYK’s air subsidiary.
NYK said the “structure of the merger could not be organised within the scope of the agreement between JAL and NYK”, but the two companies would continue with their existing relationship, which covers code-sharing flights and the co-ordination of ground handling activities.
“JAL’s strong relationship with NYK remains unchanged as we reach a common understanding to halt discussions about the merger,” said JAL group president Masaru Onishi.
“We intend to maintain mutually-beneficial business activities with NCA, such as the code-share flights, and preserve the co-operation we have already established
“Demand for air cargo business typically fluctuates with the economy. Considering future growth in the segment, JAL will include strategies for our cargo business in the JAL reorganisation plan.”
The two Japanese carriers started talks last August to examine the potential synergies of restructuring JAL’s cargo business and merging it with Nippon Cargo Airlines (NCA), NYK’s air subsidiary.
NYK said the “structure of the merger could not be organised within the scope of the agreement between JAL and NYK”, but the two companies would continue with their existing relationship, which covers code-sharing flights and the co-ordination of ground handling activities.
“JAL’s strong relationship with NYK remains unchanged as we reach a common understanding to halt discussions about the merger,” said JAL group president Masaru Onishi.
“We intend to maintain mutually-beneficial business activities with NCA, such as the code-share flights, and preserve the co-operation we have already established
“Demand for air cargo business typically fluctuates with the economy. Considering future growth in the segment, JAL will include strategies for our cargo business in the JAL reorganisation plan.”
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