Japan Airlines Corp. CEO Haruka Nishimatsu apologized Friday for not disclosing to stockholders its recent issue of new shares, which prompted JAL stock to plunge.
Nishimatsu, who replaced Toshiyuki Shinmachi at the end of June after a management shakeup, said the capital increase aimed to show the new management's determination to turn the struggling carrier around.
"I apologize to our existing shareholders for causing trouble," Nishimatsu told a news conference at JAL's head office in Tokyo. "But I ask for their understanding that (the share issue) will benefit them in the long-run," because the funds will be used to expand the airline's business, he said.