[TODAY'S TOP STORIES] from [The Japan Times]
[NATIONAL NEWS]
Saturday, Nov. 14, 2009
Obama, Hatoyama prioritize alliance
Cooperation on nuke arms, emissions; no Futenma deal
By MASAMI ITO
Staff writer
Prime Minister Yukio Hatoyama and U.S. President Barack Obama vowed Friday to bolster the bilateral alliance and cooperate on pressing global issues, including climate change and nuclear disarmament.
The two also touched on the sensitive relocation of U.S. Marine Corps Air Station Futenma in Okinawa. The issue has cast a shadow on bilateral relations. They said it was their common goal to resolve the issue as soon as possible.
Earlier this week, the two governments decided to form a ministerial-level working group to find a way to resolve the issue, just in time to avoid direct conflict at the summit.
The working group "will focus on the implementation of the agreement that our two governments reached with respect to the restructuring of the U.S. forces in Okinawa, and we hope to complete this work expeditiously," Obama said during a joint news conference. "Our goal remains the same — and that is to provide for the defense of Japan with minimal intrusion on the lives of the people who share the space."
But the contentious relocation of the Futenma base continues to loom over the Hatoyama administration.
In 2006, the then Liberal Democratic Party-led government signed a bilateral agreement with the U.S. to move the Futenma base's flight operations in Ginowan to U.S. Marine Corps Camp Schwab in Nago on the northern part of Okinawa Island by 2014.
But Hatoyama's Democratic Party of Japan, which came to power in August amid a strong wave of anti-LDP sentiment, has promised to consider moving the base outside the prefecture or even outside Japan.
Obama arrived at Tokyo's Haneda airport aboard Air Force One earlier in the day on his first official trip to Japan. He will depart Saturday for Singapore to attend the Asia-Pacific Economic Cooperation forum summit.
"I began my trip here in Tokyo because the alliance between the United States and Japan is a foundation for security and prosperity not just for our two countries but for the Asia-Pacific region," Obama said.
With the 50th anniversary of the revision of the Japan-U.S. security treaty coming up next year, the two leaders promised to strengthen the bilateral ties to aim for a "world without nuclear weapons."
"I told Obama that the Japan-U.S. alliance is the foundation of everything in regards to Japan's diplomacy," Hatoyama said. "But the times and the situation of the world have changed and I suggested to further advance and develop the alliance, to create a constructive and future-oriented new Japan-U.S. alliance."
During the evening talks at the Prime Minister's Official Residence, Hatoyama and Obama issued a joint statement, pledging the two governments to work closely toward nuclear disarmament and nonproliferation. Obama won the Nobel Peace Prize last month for his vision of a nuclear-free world.
The statement declared that North Korea and Iran should "uphold and adhere to their respective international obligations." Pointing out Pyongyang's recent missile launches and nuclear test, the joint statement stressed, "North Korea's pursuit of nuclear weapons remains a major threat to peace and stability in Northeast Asia and the entire international community."
Japan and the U.S. also urged North Korea "to return immediately to the six-party (Pyongyang denuclearization) talks without precondition."
[BUSINESS NEWS]
Saturday, Nov. 14, 2009
JAL lost 131 billion in half, skips forecast
By KAZUAKI NAGATA and TAKAHIRO FUKADA
Staff writers
Battered by the global financial crisis and the H1N1 swine flu pandemic, Japan Airlines Corp. on Friday posted a hefty group net loss of 131.2 billion for the April-September half and said it has applied for out-of-court debt restructuring as a stopgap measure to stay aloft.
It represents JAL's worst first-half loss since it merged with Japan Air System in 2002. JAL also said sales for the half fell 28.8 percent to 763.9 billion compared with a year ago.
Sales from domestic flights suffered a 12 percent drop, but the faltering airline struggled even harder on international routes, logging sales of only 225.4 billion, down 42.8 percent. The carrier refrained from issuing a forecast for the full year.
"It is difficult to have a forecast, and we would like to avoid causing misunderstanding, so we refrained from posting the forecast," JAL executive Yoshimasa Kanayama said.
JAL President Haruka Nishimatsu said in the future the company needs to reduce the number of international flights, which have been the airline's main business for a long time.
Asked whether management intended to take responsibility for the dismal figures, Nishimatsu also hinted the team may step down after the company puts together a rehabilitation plan and outlines a road map for its feasibility.
How to reconstruct the struggling airline, which posted a record 99.04 billion group net loss in the April-June quarter, has been a focus of increasing public attention.
JAL will tap into an arbitration scheme dubbed alternative dispute resolution, which allows a noncourt third-party to act as an intermediary between JAL and its creditors and immediately suspend loan payments and possibly have debt waived in the longer term.
If a company takes the ADR route, financial institutions that write off the debts will receive tax benefits.
Earlier this week, the government revealed options for saving JAL, including a bridge loan it is expected to need this month from the Development Bank of Japan and the drafting of a special law that would allow the state to reduce pension benefits.
The company has applied for rehabilitation under Tokyo-based Enterprise Turnaround Initiative Corp., a body set up by the government and private-sector financial institutions to rehabilitate debt-ridden firms.
Speaking about Friday's ADR decision, Nishimatsu said it was necessary because it would facilitate arrangements to obtain bridge loans needed for JAL to stay alive until a decision on longer-term financial aid is made by the corporate turnaround body.
Ryota Himeno, analyst at Mitsubishi UFJ Securities Co., said JAL will not likely see its business dramatically improve in the near future as it will take some time to reform its high cost structure by reducing pensions and streamlining its workforce.
But analysts said the carrier will be able to receive funding from ETIC and continue to exist with the government's support. "The airline will certainly not disappear," Himeno said.
While taxpayers might not welcome the government's assistance for JAL, experts said travelers will benefit from its continued existence.
"If there is only one carrier, it will not be good in terms of the antitrust law and competition," Himeno said, adding that JAL and rival All Nippon Airways Co. should compete with each other to keep airfares low and provide passengers with more choices.
Makoto Murayama, senior analyst at Nomura Securities Co., pointed out people who can only use JAL from their local airports also need the carrier to continue operations.
The struggle at Japan's largest has spread overseas.
American Airlines parent AMR Corp., may team up with private-equity fund TPG Inc. to invest at least 300 million in JAL, aiming to keep JAL in the oneworld alliance, while Delta Airlines Inc. of SkyTeam alliance also wants to bring JAL to their alliance.
Nishimatsu said the company needs to make an "urgent decision" by the end of the year on capital tieup talks with foreign air carriers.
However, he said the continuation of the carrier's alliance ties with American Airlines is "natural" in view of the costs of withdrawing from the oneworld grouping.
Information from Kyodo added
[NATIONAL NEWS]
Saturday, Nov. 14, 2009
Death sought over Ibaraki stabbing spree
MITO, Ibaraki Pref. (Kyodo) Prosecutors sought Friday the death sentence for a man accused of a stabbing spree in Tsuchiura, Ibaraki Prefecture, that left two people dead and seven others wounded.
At the Mito District Court, the prosecutors said Masahiro Kanazawa, 26, "wanted to end his boring days" with the death sentence he thought he would get for the March 2008 stabbings at Arakawaoki Station.
Kanazawa's counsel asked for life imprisonment.
Kanazawa was also accused of fatally stabbing a 72-year-old man at the victim's home in Tsuchiura four days before the stabbing spree.
He has admitted to stabbing the 10 people in the two cases.
[NATIONAL NEWS]
Saturday, Nov. 14, 2009
Obama, Hatoyama prioritize alliance
Cooperation on nuke arms, emissions; no Futenma deal
By MASAMI ITO
Staff writer
Prime Minister Yukio Hatoyama and U.S. President Barack Obama vowed Friday to bolster the bilateral alliance and cooperate on pressing global issues, including climate change and nuclear disarmament.
The two also touched on the sensitive relocation of U.S. Marine Corps Air Station Futenma in Okinawa. The issue has cast a shadow on bilateral relations. They said it was their common goal to resolve the issue as soon as possible.
Earlier this week, the two governments decided to form a ministerial-level working group to find a way to resolve the issue, just in time to avoid direct conflict at the summit.
The working group "will focus on the implementation of the agreement that our two governments reached with respect to the restructuring of the U.S. forces in Okinawa, and we hope to complete this work expeditiously," Obama said during a joint news conference. "Our goal remains the same — and that is to provide for the defense of Japan with minimal intrusion on the lives of the people who share the space."
But the contentious relocation of the Futenma base continues to loom over the Hatoyama administration.
In 2006, the then Liberal Democratic Party-led government signed a bilateral agreement with the U.S. to move the Futenma base's flight operations in Ginowan to U.S. Marine Corps Camp Schwab in Nago on the northern part of Okinawa Island by 2014.
But Hatoyama's Democratic Party of Japan, which came to power in August amid a strong wave of anti-LDP sentiment, has promised to consider moving the base outside the prefecture or even outside Japan.
Obama arrived at Tokyo's Haneda airport aboard Air Force One earlier in the day on his first official trip to Japan. He will depart Saturday for Singapore to attend the Asia-Pacific Economic Cooperation forum summit.
"I began my trip here in Tokyo because the alliance between the United States and Japan is a foundation for security and prosperity not just for our two countries but for the Asia-Pacific region," Obama said.
With the 50th anniversary of the revision of the Japan-U.S. security treaty coming up next year, the two leaders promised to strengthen the bilateral ties to aim for a "world without nuclear weapons."
"I told Obama that the Japan-U.S. alliance is the foundation of everything in regards to Japan's diplomacy," Hatoyama said. "But the times and the situation of the world have changed and I suggested to further advance and develop the alliance, to create a constructive and future-oriented new Japan-U.S. alliance."
During the evening talks at the Prime Minister's Official Residence, Hatoyama and Obama issued a joint statement, pledging the two governments to work closely toward nuclear disarmament and nonproliferation. Obama won the Nobel Peace Prize last month for his vision of a nuclear-free world.
The statement declared that North Korea and Iran should "uphold and adhere to their respective international obligations." Pointing out Pyongyang's recent missile launches and nuclear test, the joint statement stressed, "North Korea's pursuit of nuclear weapons remains a major threat to peace and stability in Northeast Asia and the entire international community."
Japan and the U.S. also urged North Korea "to return immediately to the six-party (Pyongyang denuclearization) talks without precondition."
[BUSINESS NEWS]
Saturday, Nov. 14, 2009
JAL lost 131 billion in half, skips forecast
By KAZUAKI NAGATA and TAKAHIRO FUKADA
Staff writers
Battered by the global financial crisis and the H1N1 swine flu pandemic, Japan Airlines Corp. on Friday posted a hefty group net loss of 131.2 billion for the April-September half and said it has applied for out-of-court debt restructuring as a stopgap measure to stay aloft.
It represents JAL's worst first-half loss since it merged with Japan Air System in 2002. JAL also said sales for the half fell 28.8 percent to 763.9 billion compared with a year ago.
Sales from domestic flights suffered a 12 percent drop, but the faltering airline struggled even harder on international routes, logging sales of only 225.4 billion, down 42.8 percent. The carrier refrained from issuing a forecast for the full year.
"It is difficult to have a forecast, and we would like to avoid causing misunderstanding, so we refrained from posting the forecast," JAL executive Yoshimasa Kanayama said.
JAL President Haruka Nishimatsu said in the future the company needs to reduce the number of international flights, which have been the airline's main business for a long time.
Asked whether management intended to take responsibility for the dismal figures, Nishimatsu also hinted the team may step down after the company puts together a rehabilitation plan and outlines a road map for its feasibility.
How to reconstruct the struggling airline, which posted a record 99.04 billion group net loss in the April-June quarter, has been a focus of increasing public attention.
JAL will tap into an arbitration scheme dubbed alternative dispute resolution, which allows a noncourt third-party to act as an intermediary between JAL and its creditors and immediately suspend loan payments and possibly have debt waived in the longer term.
If a company takes the ADR route, financial institutions that write off the debts will receive tax benefits.
Earlier this week, the government revealed options for saving JAL, including a bridge loan it is expected to need this month from the Development Bank of Japan and the drafting of a special law that would allow the state to reduce pension benefits.
The company has applied for rehabilitation under Tokyo-based Enterprise Turnaround Initiative Corp., a body set up by the government and private-sector financial institutions to rehabilitate debt-ridden firms.
Speaking about Friday's ADR decision, Nishimatsu said it was necessary because it would facilitate arrangements to obtain bridge loans needed for JAL to stay alive until a decision on longer-term financial aid is made by the corporate turnaround body.
Ryota Himeno, analyst at Mitsubishi UFJ Securities Co., said JAL will not likely see its business dramatically improve in the near future as it will take some time to reform its high cost structure by reducing pensions and streamlining its workforce.
But analysts said the carrier will be able to receive funding from ETIC and continue to exist with the government's support. "The airline will certainly not disappear," Himeno said.
While taxpayers might not welcome the government's assistance for JAL, experts said travelers will benefit from its continued existence.
"If there is only one carrier, it will not be good in terms of the antitrust law and competition," Himeno said, adding that JAL and rival All Nippon Airways Co. should compete with each other to keep airfares low and provide passengers with more choices.
Makoto Murayama, senior analyst at Nomura Securities Co., pointed out people who can only use JAL from their local airports also need the carrier to continue operations.
The struggle at Japan's largest has spread overseas.
American Airlines parent AMR Corp., may team up with private-equity fund TPG Inc. to invest at least 300 million in JAL, aiming to keep JAL in the oneworld alliance, while Delta Airlines Inc. of SkyTeam alliance also wants to bring JAL to their alliance.
Nishimatsu said the company needs to make an "urgent decision" by the end of the year on capital tieup talks with foreign air carriers.
However, he said the continuation of the carrier's alliance ties with American Airlines is "natural" in view of the costs of withdrawing from the oneworld grouping.
Information from Kyodo added
[NATIONAL NEWS]
Saturday, Nov. 14, 2009
Death sought over Ibaraki stabbing spree
MITO, Ibaraki Pref. (Kyodo) Prosecutors sought Friday the death sentence for a man accused of a stabbing spree in Tsuchiura, Ibaraki Prefecture, that left two people dead and seven others wounded.
At the Mito District Court, the prosecutors said Masahiro Kanazawa, 26, "wanted to end his boring days" with the death sentence he thought he would get for the March 2008 stabbings at Arakawaoki Station.
Kanazawa's counsel asked for life imprisonment.
Kanazawa was also accused of fatally stabbing a 72-year-old man at the victim's home in Tsuchiura four days before the stabbing spree.
He has admitted to stabbing the 10 people in the two cases.
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