[TODAY'S TOP STORIES] from [The Japan Times]
[NATIONAL NEWS]
Thursday, Jan. 21, 2010
Ozawa claims he had cash for land buy
DPJ grandee allows just one grilling; state also targets wife
Kyodo News
Democratic Party of Japan Secretary General Ichiro Ozawa plans to tell prosecutors he had at least ¥600 million in assets at the time his political fund management body made a controversial land purchase, enough to finance the transaction, sources said Wednesday.
Prosecutors, who plan to question Ozawa on a voluntary basis later in the week regarding the ¥352 million land deal in 2004, suspect secret political donations from construction companies made up part of the money used for the purchase.
Ozawa plans to explain that most of the \600 million — 300 million at his home and the remaining in deposits — were in his wife's name or those of their three children, the sources said.
Prosecutors have also requested that Ozawa's wife come in for voluntary questioning. Her family founded a midsize construction company in Niigata Prefecture.
Ozawa has informally told prosecutors he will submit only once to questioning, the sources said. The prosecutors are considering questioning him for about four hours, they said.
Ozawa's fund management body, Rikuzankai, is suspected of failing to report money used to buy the land in Tokyo's Setagaya Ward in October 2004, in violation of the Political Funds Control Law.
Ozawa's former secretary, Tomohiro Ishikawa, a DPJ Lower House member who was recently arrested on suspicion of violating the political funds law, said the land purchase was financed with \400 million borrowed from Ozawa.
Ozawa said some \300 million kept at his home was used for the land buy. But that is \50 million less than the price of the plot and inconsistent with Ishikawa's explanation.
Ozawa's link with contractors is the focus of the investigation, as the powerful politician is believed to have had a strong influence over the selection of companies for public works projects in areas around his constituency in Iwate Prefecture.
Ozawa, who is widely seen as the power behind the throne in the DPJ, was thought to have initially ignored prosecutors' request to appear for voluntary questioning.
But he has apparently changed his mind amid growing public calls for him to resign for failing to fully account for his role in the land deal.
At an annual DPJ convention Saturday, Ozawa reiterated no dubious money was involved in the land deal and, referring to the investigation by the prosecutors, said he will "fully confront such use of power."
Ozawa quit the DPJ presidency last spring after another former aide was charged in connection with alleged illegal donations to his fund body from Nishimatsu Construction Co.
[BUSINESS NEWS]
Thursday, Jan. 21, 2010
Asia routes real plum as rivals circle JAL
By HARRY WEBER
The Associated Press
ATLANTA — Japan Airlines isn't the real prize in the fight between Delta Air Lines and American Airlines over who gets to partner with the troubled carrier.
The U.S. carriers are after JAL's Asian routes and the premium passengers who come with them.
The winner gets a bigger revenue stream, more power to help shape overseas customer options and ticket prices and the potential to one day fly its own aircraft and passengers on JAL's routes.
That's why Delta and American will charge ahead in their pursuit of JAL despite its Tuesday bankruptcy filing, plans to shrink service and the tarnished image that has sent travelers to other carriers.
Growth in Asia won't cure everything that ails the major U.S. airlines but it would provide a much-needed boost. Airlines can get higher fares for seats to Asia because international business travelers tend to spend more than leisure fliers. Business travelers fly more and often at the last minute, which means paying higher walk-up fares.
Travel from North America to the mid-Pacific region, which includes Japan and South Korea, represented 5.8 percent of total premium international air traffic in November, but 12 percent of all the premium revenue, according to the latest International Air Transport Association data.
Overall passenger volume between North America and the Asia-Pacific region is expected to rise 3.8 percent in 2010 and 5.6 percent in 2011, according to a survey of airlines conducted by IATA. Between Europe and the Asia-Pacific region, it is expected to rise 4.4 percent in 2010 and 6.1 percent in 2011.
"It's really where the money is these days," Charles River Associates aviation consultant Mark Kiefer said of Asia.
American and its oneworld alliance partners, including JAL, currently have about 35 percent of U.S.-Japan market share. That would drop to 6 percent if JAL leaves oneworld and dilute American's revenue from the region.
American, which transfers roughly 400,000 passengers annually to Japan Airlines at Narita airport, does not break out total revenue for Japan. But a spokesman says the Pacific region, which includes Japan, China and Australia, accounted for roughly 3.5 percent of its total passenger revenue for the 12 months through September.
The figure excludes the impact of cargo and other nonpassenger revenue. American reports its fourth-quarter and full-year 2009 results Wednesday.
American, its partners and a private equity firm have offered $1.4 billion to Japan Airlines to stay in the oneworld alliance. American, a unit of AMR Corp., is based in Fort Worth, Texas.
Delta Air Lines Inc., based in Atlanta, is part of the SkyTeam alliance, which includes Air France-KLM. SkyTeam currently controls 30 percent of U.S.-Japan market share, according to Delta. That would increase to 54 percent if JAL joins SkyTeam, Delta said. Delta, which absorbed Northwest Airlines, carries 3.7 million customers per year from the U.S. to Japan.
Delta and its partners have made a $1 billion offer to JAL. But perhaps more importantly to JAL, they offer access to their large global network of passengers and routes. Delta is the world's biggest airline
[NATIONAL NEWS]
Thursday, Jan. 21, 2010
Free land for shrine ruled unconstitutional
Kyodo News
It is unconstitutional for a municipal government to offer city-owned land without charge for the site of a Shinto shrine, the Supreme Court said Wednesday.
The ruling by the top court's Grand Bench upheld the contention of the plaintiffs, reportedly two local residents, that the municipal government of Sunagawa, Hokkaido, violated the Constitution's principle of separation of state and religion by granting the shrine city land free of charge.
"It is inevitable that the general public would believe the local government supports a specific religion if it provides specific benefits to it," the bench said.
It also said that determining whether a religious facility is operating in accordance with the principle of separation of state and religion should take "socially accepted ideas into account."
The top court sent the case back to the Sapporo High Court to seek a "rational and realistic solution" to address the issue of unconstitutionality involving the shrine, other than its removal.
The land on which the shrine sits was donated by a local resident to the municipal government in 1953, and the city assembly decided to allow the shrine to use the site for free.
In 1970, a neighborhood association constructed a meeting hall on the city-owned land and the shrine was moved inside the building.
While the local government argued in court sessions that the facility is free from any religious influence as it is a regional facility, the Sapporo District Court ruled the placement of the shrine was unconstitutional and its ruling was upheld by the Sapporo High Court.
The Supreme Court's latest decision is its second finding of unconstitutionality in cases related separation of state and religion, following one in 1997 in which it determined it was unconstitutional for the Ehime Prefectural Government to use taxpayer money for offerings to Shinto shrines, including Yasukuni Shrine in Tokyo.
Article 20 of the Constitution reads: "The state and its organs shall refrain from religious education or any other religious activity."
[NATIONAL NEWS]
Thursday, Jan. 21, 2010
Ozawa claims he had cash for land buy
DPJ grandee allows just one grilling; state also targets wife
Kyodo News
Democratic Party of Japan Secretary General Ichiro Ozawa plans to tell prosecutors he had at least ¥600 million in assets at the time his political fund management body made a controversial land purchase, enough to finance the transaction, sources said Wednesday.
Prosecutors, who plan to question Ozawa on a voluntary basis later in the week regarding the ¥352 million land deal in 2004, suspect secret political donations from construction companies made up part of the money used for the purchase.
Ozawa plans to explain that most of the \600 million — 300 million at his home and the remaining in deposits — were in his wife's name or those of their three children, the sources said.
Prosecutors have also requested that Ozawa's wife come in for voluntary questioning. Her family founded a midsize construction company in Niigata Prefecture.
Ozawa has informally told prosecutors he will submit only once to questioning, the sources said. The prosecutors are considering questioning him for about four hours, they said.
Ozawa's fund management body, Rikuzankai, is suspected of failing to report money used to buy the land in Tokyo's Setagaya Ward in October 2004, in violation of the Political Funds Control Law.
Ozawa's former secretary, Tomohiro Ishikawa, a DPJ Lower House member who was recently arrested on suspicion of violating the political funds law, said the land purchase was financed with \400 million borrowed from Ozawa.
Ozawa said some \300 million kept at his home was used for the land buy. But that is \50 million less than the price of the plot and inconsistent with Ishikawa's explanation.
Ozawa's link with contractors is the focus of the investigation, as the powerful politician is believed to have had a strong influence over the selection of companies for public works projects in areas around his constituency in Iwate Prefecture.
Ozawa, who is widely seen as the power behind the throne in the DPJ, was thought to have initially ignored prosecutors' request to appear for voluntary questioning.
But he has apparently changed his mind amid growing public calls for him to resign for failing to fully account for his role in the land deal.
At an annual DPJ convention Saturday, Ozawa reiterated no dubious money was involved in the land deal and, referring to the investigation by the prosecutors, said he will "fully confront such use of power."
Ozawa quit the DPJ presidency last spring after another former aide was charged in connection with alleged illegal donations to his fund body from Nishimatsu Construction Co.
[BUSINESS NEWS]
Thursday, Jan. 21, 2010
Asia routes real plum as rivals circle JAL
By HARRY WEBER
The Associated Press
ATLANTA — Japan Airlines isn't the real prize in the fight between Delta Air Lines and American Airlines over who gets to partner with the troubled carrier.
The U.S. carriers are after JAL's Asian routes and the premium passengers who come with them.
The winner gets a bigger revenue stream, more power to help shape overseas customer options and ticket prices and the potential to one day fly its own aircraft and passengers on JAL's routes.
That's why Delta and American will charge ahead in their pursuit of JAL despite its Tuesday bankruptcy filing, plans to shrink service and the tarnished image that has sent travelers to other carriers.
Growth in Asia won't cure everything that ails the major U.S. airlines but it would provide a much-needed boost. Airlines can get higher fares for seats to Asia because international business travelers tend to spend more than leisure fliers. Business travelers fly more and often at the last minute, which means paying higher walk-up fares.
Travel from North America to the mid-Pacific region, which includes Japan and South Korea, represented 5.8 percent of total premium international air traffic in November, but 12 percent of all the premium revenue, according to the latest International Air Transport Association data.
Overall passenger volume between North America and the Asia-Pacific region is expected to rise 3.8 percent in 2010 and 5.6 percent in 2011, according to a survey of airlines conducted by IATA. Between Europe and the Asia-Pacific region, it is expected to rise 4.4 percent in 2010 and 6.1 percent in 2011.
"It's really where the money is these days," Charles River Associates aviation consultant Mark Kiefer said of Asia.
American and its oneworld alliance partners, including JAL, currently have about 35 percent of U.S.-Japan market share. That would drop to 6 percent if JAL leaves oneworld and dilute American's revenue from the region.
American, which transfers roughly 400,000 passengers annually to Japan Airlines at Narita airport, does not break out total revenue for Japan. But a spokesman says the Pacific region, which includes Japan, China and Australia, accounted for roughly 3.5 percent of its total passenger revenue for the 12 months through September.
The figure excludes the impact of cargo and other nonpassenger revenue. American reports its fourth-quarter and full-year 2009 results Wednesday.
American, its partners and a private equity firm have offered $1.4 billion to Japan Airlines to stay in the oneworld alliance. American, a unit of AMR Corp., is based in Fort Worth, Texas.
Delta Air Lines Inc., based in Atlanta, is part of the SkyTeam alliance, which includes Air France-KLM. SkyTeam currently controls 30 percent of U.S.-Japan market share, according to Delta. That would increase to 54 percent if JAL joins SkyTeam, Delta said. Delta, which absorbed Northwest Airlines, carries 3.7 million customers per year from the U.S. to Japan.
Delta and its partners have made a $1 billion offer to JAL. But perhaps more importantly to JAL, they offer access to their large global network of passengers and routes. Delta is the world's biggest airline
[NATIONAL NEWS]
Thursday, Jan. 21, 2010
Free land for shrine ruled unconstitutional
Kyodo News
It is unconstitutional for a municipal government to offer city-owned land without charge for the site of a Shinto shrine, the Supreme Court said Wednesday.
The ruling by the top court's Grand Bench upheld the contention of the plaintiffs, reportedly two local residents, that the municipal government of Sunagawa, Hokkaido, violated the Constitution's principle of separation of state and religion by granting the shrine city land free of charge.
"It is inevitable that the general public would believe the local government supports a specific religion if it provides specific benefits to it," the bench said.
It also said that determining whether a religious facility is operating in accordance with the principle of separation of state and religion should take "socially accepted ideas into account."
The top court sent the case back to the Sapporo High Court to seek a "rational and realistic solution" to address the issue of unconstitutionality involving the shrine, other than its removal.
The land on which the shrine sits was donated by a local resident to the municipal government in 1953, and the city assembly decided to allow the shrine to use the site for free.
In 1970, a neighborhood association constructed a meeting hall on the city-owned land and the shrine was moved inside the building.
While the local government argued in court sessions that the facility is free from any religious influence as it is a regional facility, the Sapporo District Court ruled the placement of the shrine was unconstitutional and its ruling was upheld by the Sapporo High Court.
The Supreme Court's latest decision is its second finding of unconstitutionality in cases related separation of state and religion, following one in 1997 in which it determined it was unconstitutional for the Ehime Prefectural Government to use taxpayer money for offerings to Shinto shrines, including Yasukuni Shrine in Tokyo.
Article 20 of the Constitution reads: "The state and its organs shall refrain from religious education or any other religious activity."