NYK/JAL negotiations end, JAL may exit cargo

Nippon Yusen Kabushiki Kaisha (NYK) and Japan Airlines International (JAL) have officially ended negotiations around a possible merger of the cargo businesses of JAL and NYK's subsidiary, Nippon Cargo Airlines (NCA).

The negotiations involved the restructuring and the feasibility of a potential merger of the cargo business of JAL and NCA. Both parties said they have reached an amicable conclusion to end the negotiations because the structure of the merger could not be organised 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 co-ordinating ground handling activities.

Both companies will remain open to discussions about any possible co-operation in the future, they said. Speculation has now centred aroud the possibility that JAL is considering downsizing its air cargo operations and may exit its air freight business altogether.