ANA calls on gov't support for whole airline industry, not just JAL
ALNPY | Quote | Chart | News | PowerRating -- All Nippon Airways Co. President Shinichiro Ito said Tuesday the government should provide support not only to bail out Japan Airlines Corp. but to boost the competitive edge of Japan's aviation industry as a whole.
"We ask (the government) to consider not only supporting and rescuing JAL as an individual company, but to focus strongly on the revival of Japanese skies," Ito said at a press conference in Tokyo.
"We ask that a fair and equitable competitive environment be maintained," he added.
The comments came as the government prepares rescue measures to bail out rival JAL with public funds, using a government-backed corporate turnaround body.
Specifically, Ito urged the government to lower landing fees and aviation fuel charges, which are much higher than those of other countries, not as a temporary measure to relieve the burden on JAL, but as a permanent step to support the broader industry.
ANA has fared much better than JAL with a more efficient cost structure, but Japan's second-largest airline has nonetheless been hit-hard as a consequence of travel demand ravaged by the global economic downturn and the spread of the new influenza.
Last month, the company reported a group operating loss for the first time in 30 years during the April to September period and anticipates red-ink figures for the whole business year through March.
"This is not a problem for a single company," Ito said. "It is necessary to consider it as a challenge for the entire aviation industry."
But ANA said it will seek to ride out the adverse business conditions by strengthening ties with United Airlines and Continental Airlines Inc., all members of the same global Star Alliance grouping, as it seeks to counter moves by Delta Air Lines Inc. and American Airlines to court JAL.
"We have no intention of seeking public funds," Ito said. "We have a strong desire to move forward on our own feet."
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