Nippon Cargo and JAL call off merger talks.
LESS than six months after it was announced, a planned merger between Nippon Cargo Airlines, the air cargo subsidiary of Nippon Yusen Kaisha, and Japan Airlines (International) is off.
Both companies issued press releases that described the decision to suspend talks as ?amicable?.
A spokesman for NYK attributed the breakdown to ailing JAL"s application for bankruptcy protection in January. The airline incurred losses of ¥177.8bn ($2bn) in the first nine months of 2009.
?JAL itself is under the control of the government right now,? said Keizo Nagai, general manager of NYK"s Corporate Communications Group. ?It was a bit hard to contact them from our side, so we could not proceed with the dialogue.?
Mr Nagai said NCA was not in merger discussions with other airlines.
He said the market for air cargo ex-Japan was experiencing modest recovery.
The companies said they would continue their existing business relationships which include code-share flights and coordinated ground-handling activities, and that they would be ?open to discussions about any possible cooperation in the future?.