MAEBASHI, Gunma Pref. – Japan Airlines Corp. had to ask a foundation that holds commemorative events for the 1985 JAL jumbo jet crash to pay its ¥12 million contribution to help maintain a path to the crash site on a mountain in Gunma Prefecture, officials of JAL and the foundation said Tuesday.
According to Irei-no-Sono (Memorial Garden), based in Ueno, Gunma Prefecture, JAL and the village were to jointly bear the cost for last year’s projects to maintain the path for climbers to the crash site on Osutaka ridge.
But JAL, currently undergoing government-backed rehabilitation, asked the foundation to pay the money on the carrier’s behalf temporarily because of financial constraints. The foundation agreed to the request.
Of the ¥12 million, JAL paid back ¥6 million in July, it said.
“Since we were in financial difficulty, we could not come up with money for the expenditure,” a JAL official said. “We will pay back the rest in installments over the next two years.”
The foundation’s main source of revenue is yields on fund management and donations from JAL. Its current balance for the fund reserve totals ¥538 million.
On Aug. 12, 1985, a JAL Boeing 747 crashed into the mountain, killing all but four of the 524 passengers and crew members aboard.
Final pitch to banks KYODO Japan Airlines Corp. and its bankruptcy administrator have presented a final draft for the carrier’s rehabilitation to its creditor banks, featuring debt waivers totaling ¥521.5 billion, sources said.
Mizuho Corporate Bank and other major creditor banks are expected to accept the plan, paving the way for JAL and the government-backed Enterprise Turnaround Initiative Corp. of Japan to submit it to the Tokyo District Court by the deadline at the end of this month, the sources said.
In the draft plan, JAL, which filed for bankruptcy protection in January, asks its creditor banks to waive ¥383 billion in loans, or 87.5 percent of their uncollateralized loans to the carrier. Including bonds and financial derivatives, the requested debt waiver totals ¥521.5 billion.
The plan envisages JAL posting a group net profit of ¥111.9 billion in the 2014 business year. Operating costs, which amounted to ¥1.63 trillion in 2009, are projected to decrease ¥440 billion in 2014 through workforce cuts and other restructuring measures to help JAL book an operating profit of ¥133.1 billion.
But the banks are cautious about extending ¥319.2 billion in fresh loans as requested by JAL.
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