TPG Japan Airlines

TPG May Buy Minority Stake in Japan Airlines

TPG may purchase a minority stake in Japan Airlines in order to prevent the company from moving to Delta Airlines.  The deal is overseen by American Airlines, which is hoping to expand to Japan Airlines' network in Asia.  Japan Airlines is swamped with $15 billion in debt, large pension deficit and unpopular money-losing routes.  The Japanese government has said it would bailout JAL for the fourth time since 2001. 

Even as it struggles to avoid bankruptcy, JAL is being wooed separately by American Airlines and Delta Air Lines, which are keen to gain access to JAL's network in Asia and a stronger foothold in Japan. JAL is Asia's largest carrier by revenues.

AMR's Thomas Horton said TPG, which helped fund Continental Airlines emergence from bankruptcy in 1993 and backed a failed takeover attempt for Australia's Qantas Airways (QAN.AX) in 2007, has agreed to potentially invest in JAL as part of any deal with American Airlines.

"As appropriate and if it were welcomed by Japan Airlines and the government of Japan, TPG could also be part of a comprehensive recovery plan," Horton told reporters in Tokyo.

"They have been active in the airline space over the years."  Source

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Tags: TPG Japan Airlines, Japanese airlines, texas pacific group, tpg private equity group, texas pacific japan airlines, minority stake

Link to This Resource: TPG Japan Airlines

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