May 29, 2010

Debt-ridden Japan Airlines has abandoned plans to continue with special benefits for its shareholders, the Nikkei business daily reported.

The decision came in light of the growing sentiment that public funds should not subsidise those bearing some responsibility for the firm's troubles, the newspaper said.

A decision to end the programme involving half-off discounts on regular domestic airfares, with coupons issued based upon number of shares held, is expected next week, the Nikkei said.

While applying for bankruptcy protection in January, JAL said coupons already issued could be used until their end-of-May expiration date and the market was closely watching whether the airline would continue the programme beyond that point, the report said.

The daily said JAL's expected 100 percent capital reduction is unlikely to take place until October at the earliest owing to delays in drawing up its rehabilitation plan, which means its shares will exist until that time.

(Reuters)

Source: http://news.airwise.com/story/view/1275103075.html