Industry watchers have been skeptical of Japan Airlines lately. On June 30, JAL announced it would issue stocks to raise much-needed cash, a move that has many wondering about the long-term prospects of the embattled carrier. A revealing point about the issuance is JAL neglected to inform shareholders before making the announcement -- even though it held a shareholders' meeting only two days before.
The bid to raise funds comes as yet another bad sign for the struggling company. Internal dissent by management-level employees forced a change in the executive board, and a series of safety gaffes -- all fortunately without serious injury -- have driven customers to rival ANA, which surpassed JAL as the nation's leading carrier.
Not only does JAL have to play catch-up with its main competitor, it must also keep an eye on the new breed of carriers starting to make bold strides in domestic travel.