Japan Airlines stock to be relisted on Tokyo Stock Exchange

Hotel News - 09/01/2012

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Reports say the company is likely to sell off at least 500bn yen (£4.2 billion) in shares, upwards of 1 trillion yen (£8.4 billion), which would make it one of the largest publicly traded airlines worldwide.

If the reports prove to be true, the move would come ahead of growing threats for JAL, including the increase of competition in the Japanese domestic market as well as weaker overall global demand.

The company was delisted in from trading in 2010 after it filed for bankruptcy due to debts in excess of $25 billion (£16.1 billion) . The airline was later given bailout funds by the Japanese government and axed around 30 per cent of its employees whilst trimming benefits for many of those that retained employment, allowing it to emerge from bankruptcy in 2011.

A spokesman for JAL would not comment regarding the size of the upcoming listings but confirmed that it had commissioned Nomura and Daiwa Securities to handle the task.

Meanwhile, analysts say the listing could be risky considering it comes at a time when JAL’s efforts, including its new low-cost ventures, face stiff competition from growing names like Air Asia X and Japan’s biggest budget carrier, Skymark Airlines.

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