Nippon Yusen Kabushiki Kaisha (NYK) announced today that it ended negotiations with Japan Airlines International (JAL), the key subsidiary of Japan Airlines on cargo business reform involving a possible merger between JAL and our subsidiary, Nippon Cargo Airlines (NCA).
The commencement of negotiations involving the restructuring of cargo business operated by JAL and NCA was announced in August 2009, and the feasibility of a potential merger between the cargo business of JAL and NCA was being analyzed. Both parties have reached an amicable conclusion to end the negotiations because the structure of the merger could not be organized within the scope of the agreement between JAL and NYK.
Nevertheless, JAL and NCA will continue their existing business relationships, such as operating code-sharing flights and coordinating ground handling activities. Both companies will maintain close communication in their current business partnership, and will be open to discussions about any possible cooperation in the future.