JAL on track to be solvent by March 2011!

[AA 1818]

Japan Airlines Corp. now expects to be solvent again by March 2011, earlier than previously thought, according to a Japanese news report Thursday. The Nikkei business daily reported that JAL has made rapid progress on cost cutting and seen steady passenger revenue, sending its April-June operating profit to 38.8 billion yen ($455.6 million), which it now plans to use to eliminate its negative net worth. However, the report added that "even if JAL boasts more assets than debt, it will remain undercapitalized in the early stages of its reconstruction plan." http://www.foxbusiness.com/markets/2...solvent-march/

Great news, and a relitavely quick turnaround for the airline. I hope though, that they emerge as a stronger, healthier carrier, and are able to assume many of their old routes. I understand fully that they Japanese economic climate and JAL's comittments were not always in sync, but I do hope that we will see a newer, healthier JAL that retains the strenghts and extensive networks of the past.

On a similar note, Bloomberg News is reporting that JAL will be announcing that their assets exceed their debts rather soon, but will remain in Chapter 11 to sort many of their other costs and issues.

http://www.bloomberg.com/news/2010-08-11/japan-airlines-may-say-assets-now-exceed-liabilities-nikkei-reports.html