[TODAY'S TOP STORIES] from [The Japan Times]
[BUSINESS NEWS]
Thursday, Jan. 14, 2010
JAL budget carrier eyed
Kyocera founder to be new boss
Kyodo News
The state-backed body tasked with rehabilitating Japan Airlines is looking to set up a budget carrier in the JAL group that would fly from two domestic airports to popular tourist locales in and outside Japan, sources said Wednesday.
Enterprise Turnaround Initiative Corp. of Japan would aim toward starting the discount flights by March 2013, offering low fares while saving costs, the sources said.
The turnaround body is considering operating discount routes from Kansai International Airport in Osaka and Chubu International Airport near Nagoya to popular tourist spots in Asia and domestic locations, including Hokkaido and Okinawa, the sources said.
ETIC is compiling a court-led rehabilitation plan for JAL that is likely to involve the elimination of 14 international and 12 domestic routes.
Meanwhile, Kazuo Inamori, honorary chairman and founder of Kyocera Corp., accepted Wednesday the government's offer to be JAL's chief executive officer.
Prime Minister Yukio Hatoyama met Inamori, 77, and asked to him to take up the position the same day. Inamori will work unpaid three to four days a week at JAL's office, sources said.
"After listening to what they had to say, I told them that JAL's restructuring is possible if the plan is implemented as it is," Inamori told reporters earlier in the day.
In addition to restructuring, sources said ETIC is also preparing measures to make sure JAL can stay competitive amid the growing popularity of budget airlines worldwide.
Also to help save costs, ETIC is considering relocating JAL's headquarters from Higashi Shinagawa in Tokyo to a site closer to Haneda airport.
Under study is a plan to set up the proposed low-cost carrier with other firms, including some from outside the airline business.
The budget airline might take over some routes linking the Kansai and Chubu airports with popular domestic and overseas tourist destinations, which are now operated by a group firm, JAL Express Co.
The proposed discount airline would reduce costs by trimming the size of flight crews, charging for drinks and offering only economy-class seats on domestic flights.
Also under consideration is selling some of the shares JAL holds in its group firms — Japan Trans Ocean Air Co. and Ryukyu Air Commuter Co., which serve Japan's remote islands — to local authorities. If the plan goes through, the two airlines would no longer be JAL's consolidated subsidiaries.
[NATIONAL NEWS]
Thursday, Jan. 14, 2010
Clinton accepts delay over base
Futenma friction downplayed in Okada talks; cooperation lauded
Compiled from AP, Kyodo
HONOLULU — U.S. Secretary of State Hillary Rodham Clinton said Tuesday the Obama administration feels assured of Japan's commitment to the bilateral security alliance, even as Tokyo weighs abandoning the 2006 deal on relocating the U.S. Futenma military base.
"The Japanese government has explained the process they are pursuing to reach a resolution" on the air station in Okinawa, "and we respect that," she said after meeting with Foreign Minister Katsuya Okada.
While Okada apparently did not promise Japan would not force Futenma off its territory entirely, he said Tokyo would determine the future of the air station by May, in a way that would have "minimal impact on the U.S.-Japan alliance."
In a nod to Japanese sensitivities, Clinton said it was important for the U.S. to maintain its role in contributing to stability in the Asia-Pacific region while keeping in mind the need to reduce the impact of jet noise and other inconveniences to communities near U.S. bases.
The U.S. military views Futenma as critical to its strategy for defending not only Japan but also reinforcing allied forces in the event of war on the Korean Peninsula.
Upon arrival at the University of Hawaii, Clinton was met by a few dozen protesters lining the street and shouting "End the wars!" and hoisting signs demanding that the U.S. withdraw its forces from Okinawa. None attended the speech.
Clinton stressed that the first U.S. priority in the Asia-Pacific is to maintain the country-to-country alliances it already has, while exploring ways in which the United States can play a role in any new or reconfigured associations.
"The ultimate purpose of our cooperation should be to dispel suspicions that still exist as artifacts of the region's turbulent past," she said.
At her news conference with Okada, Clinton played down the friction over Futenma, stressing the many other areas of long-standing cooperation between the two countries. And she made clear that satisfying U.S. needs for the marine base is equally in Japan's own interest.
"We look to our Japanese allies and friends to follow through on their commitments, including on Futenma," she said. "I know Japan understands and agrees that our security alliance is fundamental to the future of Japan and the region."
Okada said he and Clinton formally agreed to take the opportunity this year, which marks the 50th anniversary of the current bilateral security arrangement, to launch consultations to further deepen the alliance.
He said Japan's foreign and defense ministers and their U.S. counterparts will issue a joint document on Jan. 19, the day the revised security treaty was signed 50 years ago.
Okada also said Japan and the United States agreed to hold a meeting of the four officials in the first half of this year for a midterm review of the alliance consultations.
He said both countries will try to reach a final conclusion by November, when Prime Minister Yukio Hatoyama and President Barack Obama are expected to meet on the fringes of an annual Pacific Rim summit to be held in Yokohama.
In Tokyo on Wednesday, Hatoyama called the Okada-Clinton talks "extremely meaningful," telling reporters the two seemed to have communicated to each other well their desire to deepen the alliance.
"We should appreciate the Japanese-U.S. alliance and security (treaty) that exists to defend this country," he said in an address to senior Self-Defense Forces officers later in the day.
On the Futenma question, Hatoyama told the reporters he would like the United States to wait and see developments on the Japanese side "because we have said we will reach a final conclusion by May."
[NATIONAL NEWS]
Thursday, Jan. 14, 2010
Offices of Ozawa, Kajima searched
Kyodo News
Prosecutors searched the private office of Democratic Party of Japan Secretary General Ichiro Ozawa and the office of his fund management body in Tokyo Wednesday over accounting irregularities.
They also searched the office at the Diet members' building of Tomohiro Ishikawa, a DPJ Lower House member who previously handled clerical work at Rikuzankai, the fund body, as well as the Tokyo head office and the Sendai branch of general contractor Kajima Corp.
Kajima's local office is located in the Miyagi capital, and Ozawa is elected from neighboring Iwate Prefecture.
The Tokyo District Public Prosecutor's Office is considering whether it can build a case against Ishikawa, who is believed to have been involved in a dubious land buy in Tokyo, in which an unregistered 400 million was used for the purchase.
Ishikawa has admitted that more than 400 million had not been recorded in Rikuzankai's funds reports and that the money for the purchase came from Ozawa himself. Prosecutors suspect, however, that Kajima and other major construction companies provided the funds.
Rikuzankai has been implicated as well in alleged illegal political donations from Nishimatsu Construction Co., for which another ex-aide of Ozawa is standing trial.
Ishikawa was questioned earlier in the day on a voluntary basis for the second time and was present as prosecutors searched his office.
Ozawa, for his part, referred to the irregularities at a press conference Tuesday, saying, "I believe that staff at my office have not violated the law intentionally, although they and I may have made some miscalculations."
Later Wednesday, Ozawa said in a speech at a party in Aichi Prefecture that he is "sorry for causing trouble again," but stressed that "I believe I have done nothing that violates the law."
Prosecutors have asked Ozawa to appear for questioning on a voluntary basis in connection with their investigation into the land purchase.
Resignation call
A top Liberal Democratic Party figure warned Wednesday that the opposition camp may submit a resolution calling on Ichiro Ozawa, secretary general of the ruling Democratic Party of Japan, to quit the Diet, after prosecutors raided his funds management body over a shady land purchase in Tokyo.
"Ozawa has not assumed his responsibility of explaining the case," Tadamori Oshima, LDP secretary general, told reporters. "I hope (prosecutors) will clarify the case through a thorough investigation."
He said that if Ozawa fails to give a full account of the case, "we should certainly consider a motion urging him" to resign as a lawmaker in the ordinary Diet session that convenes next Monday.
Asked how the case would affect the government of Prime Minister Yukio Hatoyama, Kazuo Shii, leader of the Japanese Communist Party, told reporters, "There is also a scandal involving Hatoyama himself, and the scandal concerning Ozawa has become a considerably big one."
[BUSINESS NEWS]
Thursday, Jan. 14, 2010
JAL budget carrier eyed
Kyocera founder to be new boss
Kyodo News
The state-backed body tasked with rehabilitating Japan Airlines is looking to set up a budget carrier in the JAL group that would fly from two domestic airports to popular tourist locales in and outside Japan, sources said Wednesday.
Enterprise Turnaround Initiative Corp. of Japan would aim toward starting the discount flights by March 2013, offering low fares while saving costs, the sources said.
The turnaround body is considering operating discount routes from Kansai International Airport in Osaka and Chubu International Airport near Nagoya to popular tourist spots in Asia and domestic locations, including Hokkaido and Okinawa, the sources said.
ETIC is compiling a court-led rehabilitation plan for JAL that is likely to involve the elimination of 14 international and 12 domestic routes.
Meanwhile, Kazuo Inamori, honorary chairman and founder of Kyocera Corp., accepted Wednesday the government's offer to be JAL's chief executive officer.
Prime Minister Yukio Hatoyama met Inamori, 77, and asked to him to take up the position the same day. Inamori will work unpaid three to four days a week at JAL's office, sources said.
"After listening to what they had to say, I told them that JAL's restructuring is possible if the plan is implemented as it is," Inamori told reporters earlier in the day.
In addition to restructuring, sources said ETIC is also preparing measures to make sure JAL can stay competitive amid the growing popularity of budget airlines worldwide.
Also to help save costs, ETIC is considering relocating JAL's headquarters from Higashi Shinagawa in Tokyo to a site closer to Haneda airport.
Under study is a plan to set up the proposed low-cost carrier with other firms, including some from outside the airline business.
The budget airline might take over some routes linking the Kansai and Chubu airports with popular domestic and overseas tourist destinations, which are now operated by a group firm, JAL Express Co.
The proposed discount airline would reduce costs by trimming the size of flight crews, charging for drinks and offering only economy-class seats on domestic flights.
Also under consideration is selling some of the shares JAL holds in its group firms — Japan Trans Ocean Air Co. and Ryukyu Air Commuter Co., which serve Japan's remote islands — to local authorities. If the plan goes through, the two airlines would no longer be JAL's consolidated subsidiaries.
[NATIONAL NEWS]
Thursday, Jan. 14, 2010
Clinton accepts delay over base
Futenma friction downplayed in Okada talks; cooperation lauded
Compiled from AP, Kyodo
HONOLULU — U.S. Secretary of State Hillary Rodham Clinton said Tuesday the Obama administration feels assured of Japan's commitment to the bilateral security alliance, even as Tokyo weighs abandoning the 2006 deal on relocating the U.S. Futenma military base.
"The Japanese government has explained the process they are pursuing to reach a resolution" on the air station in Okinawa, "and we respect that," she said after meeting with Foreign Minister Katsuya Okada.
While Okada apparently did not promise Japan would not force Futenma off its territory entirely, he said Tokyo would determine the future of the air station by May, in a way that would have "minimal impact on the U.S.-Japan alliance."
In a nod to Japanese sensitivities, Clinton said it was important for the U.S. to maintain its role in contributing to stability in the Asia-Pacific region while keeping in mind the need to reduce the impact of jet noise and other inconveniences to communities near U.S. bases.
The U.S. military views Futenma as critical to its strategy for defending not only Japan but also reinforcing allied forces in the event of war on the Korean Peninsula.
Upon arrival at the University of Hawaii, Clinton was met by a few dozen protesters lining the street and shouting "End the wars!" and hoisting signs demanding that the U.S. withdraw its forces from Okinawa. None attended the speech.
Clinton stressed that the first U.S. priority in the Asia-Pacific is to maintain the country-to-country alliances it already has, while exploring ways in which the United States can play a role in any new or reconfigured associations.
"The ultimate purpose of our cooperation should be to dispel suspicions that still exist as artifacts of the region's turbulent past," she said.
At her news conference with Okada, Clinton played down the friction over Futenma, stressing the many other areas of long-standing cooperation between the two countries. And she made clear that satisfying U.S. needs for the marine base is equally in Japan's own interest.
"We look to our Japanese allies and friends to follow through on their commitments, including on Futenma," she said. "I know Japan understands and agrees that our security alliance is fundamental to the future of Japan and the region."
Okada said he and Clinton formally agreed to take the opportunity this year, which marks the 50th anniversary of the current bilateral security arrangement, to launch consultations to further deepen the alliance.
He said Japan's foreign and defense ministers and their U.S. counterparts will issue a joint document on Jan. 19, the day the revised security treaty was signed 50 years ago.
Okada also said Japan and the United States agreed to hold a meeting of the four officials in the first half of this year for a midterm review of the alliance consultations.
He said both countries will try to reach a final conclusion by November, when Prime Minister Yukio Hatoyama and President Barack Obama are expected to meet on the fringes of an annual Pacific Rim summit to be held in Yokohama.
In Tokyo on Wednesday, Hatoyama called the Okada-Clinton talks "extremely meaningful," telling reporters the two seemed to have communicated to each other well their desire to deepen the alliance.
"We should appreciate the Japanese-U.S. alliance and security (treaty) that exists to defend this country," he said in an address to senior Self-Defense Forces officers later in the day.
On the Futenma question, Hatoyama told the reporters he would like the United States to wait and see developments on the Japanese side "because we have said we will reach a final conclusion by May."
[NATIONAL NEWS]
Thursday, Jan. 14, 2010
Offices of Ozawa, Kajima searched
Kyodo News
Prosecutors searched the private office of Democratic Party of Japan Secretary General Ichiro Ozawa and the office of his fund management body in Tokyo Wednesday over accounting irregularities.
They also searched the office at the Diet members' building of Tomohiro Ishikawa, a DPJ Lower House member who previously handled clerical work at Rikuzankai, the fund body, as well as the Tokyo head office and the Sendai branch of general contractor Kajima Corp.
Kajima's local office is located in the Miyagi capital, and Ozawa is elected from neighboring Iwate Prefecture.
The Tokyo District Public Prosecutor's Office is considering whether it can build a case against Ishikawa, who is believed to have been involved in a dubious land buy in Tokyo, in which an unregistered 400 million was used for the purchase.
Ishikawa has admitted that more than 400 million had not been recorded in Rikuzankai's funds reports and that the money for the purchase came from Ozawa himself. Prosecutors suspect, however, that Kajima and other major construction companies provided the funds.
Rikuzankai has been implicated as well in alleged illegal political donations from Nishimatsu Construction Co., for which another ex-aide of Ozawa is standing trial.
Ishikawa was questioned earlier in the day on a voluntary basis for the second time and was present as prosecutors searched his office.
Ozawa, for his part, referred to the irregularities at a press conference Tuesday, saying, "I believe that staff at my office have not violated the law intentionally, although they and I may have made some miscalculations."
Later Wednesday, Ozawa said in a speech at a party in Aichi Prefecture that he is "sorry for causing trouble again," but stressed that "I believe I have done nothing that violates the law."
Prosecutors have asked Ozawa to appear for questioning on a voluntary basis in connection with their investigation into the land purchase.
Resignation call
A top Liberal Democratic Party figure warned Wednesday that the opposition camp may submit a resolution calling on Ichiro Ozawa, secretary general of the ruling Democratic Party of Japan, to quit the Diet, after prosecutors raided his funds management body over a shady land purchase in Tokyo.
"Ozawa has not assumed his responsibility of explaining the case," Tadamori Oshima, LDP secretary general, told reporters. "I hope (prosecutors) will clarify the case through a thorough investigation."
He said that if Ozawa fails to give a full account of the case, "we should certainly consider a motion urging him" to resign as a lawmaker in the ordinary Diet session that convenes next Monday.
Asked how the case would affect the government of Prime Minister Yukio Hatoyama, Kazuo Shii, leader of the Japanese Communist Party, told reporters, "There is also a scandal involving Hatoyama himself, and the scandal concerning Ozawa has become a considerably big one."