(NCA and JAL start code-sharing negotiations)
NCA comments as below regarding the article entitled "JAL and NCA start negotiations over code-sharing in North American route" in Nihon Keizai Shimbun dated January 7.
NCA began negotiations with JAL over the operation of a code-sharing flight in the North American route, which is scheduled to start in summer 2009.
The air cargo market to/from Japan and Asia is suffering from unprecedented market shrinkage and slump caused by the worldwide depression triggered by the sub-prime loan crisis, and also from the structural stagnation over the last several years. The severe downturn is of uncertain duration and business growth may not resume for some time.
Under such business circumstances operational unit costs have increased as tonnage has shrunk. NCA began negotiations with JAL to start code-sharing in some North American routes in summer 2009, with the purpose of reducing costs and enhancing NCA’s ability to compete. The planned code share will also allow NCA to increase its ability to serve customers in new time slots and over a broader range of flights and thereby give NCA's customers more opportunities to use NCA.
Details will be finalized in future discussion between NCA and JAL. As a matter of course, the negotiation will be undertaken in compliance with relevant laws and regulations in Japan and the partner country, and the operations will be realized after obtaining approval from the authorities concerned. We highly appreciate the understanding and continued support and patronage of our customers and concerned parties.
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