Kyodo News (Japanese version) reports more details of the ADR rumor, including the amount of debt Japan Airlines is trying to waive and some management reshuffling.
Below are the summary of the report:
- JAL is looking for waive 250 billion yen of debt.
- JAL will ask for 150 billion yen of capital boost through private investment and government funds.
- JAL will expand job cuts from JAL will 6,800 to over 9,000 employees
- JAL CEO Haruka Nishimatsu will step down as CEO in January and will be replaced by some outside of JAL. A JAL employee in his/her 40s will be promoted to COO.
There is also an update from Japan Aviation Minister Mr. Maehara, who received an update from the 5-member restructuring panel he set up to replace the previous one. According to Maehara, the process has been going smoothly so far and he sense that a fundamental solution for JAL will be found.
I sure do hope Maehara is right about this. If there's some fundamental problems, go fix it. It is also sad to see Nishimatsu to step down. I have a feeling he is a really down to earth CEO and is a good example of how a good CEO should behave. How often you see a CEO handing out flyers on the street and make less money than a lot of the employees under him. He puts a lot of greedy CEOs from the US at shame. However, he is the one who is ultimately responsible for making the decisions that led to the problems JAL faces today. And unfortunately that's his number one responsibility as JAL CEO and he has to go if he couldn't make the right calls no matter how likable he is.
But Nishimatsu san, you will be missed.
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